Launched in 2017, fintech credit card Brex is already chasing a $2bn valuation

By Oliver Smith on 31st May 2019

Fintech

Aimed at startup founders, Brex has quickly become a hot property in Silicon Valley.

Launched in 2017, fintech credit card Brex is already chasing a $2bn valuation
Image source: Pedro Franceschi and Henrique Dubugras/Brex

Brex, the US credit card aimed at startup founders, is reportedly raising its series D funding round according to TechCrunch and is chasing a $2bn valuation according to Bloomberg.

Launched just 24 months ago by Brazilian entrepreneurs Henrique Dubugras and Pedro Franceschi, Brex has soared in value.

The company emerged from Y Combinator and has raised a total of $282.1m from VC and debt funding, in October raising $125m from DST Global and Greenoaks Capital at a $1.1bn valuation.

Its pitch is a corporate credit card aimed at startups, without annual fees and without requiring a personal guarantee or security deposit.

By targeting a credit-hungry market of entrepreneurs—and by capitalising on Y Combinator’s network of startups as its first customers—Brex has quickly become a hot property in Silicon Valley, and star investor Kleiner Perkins is said to be one of the investors eyeing up the company.

Because it doesn’t ask for a personal guarantee or security deposit, Brex’s lending criteria is based on each startup’s funding data and bank account deposits, which Brex monitors.

If a startup’s cash falls below a certain level Brex shuts down their card.

Since raising $100m in debt funding from Barclays in April Brex has been aggressively marketing its card using rather traditional methods, including billboards and bus stop ads around San Francisco.

AltFi Berlin Summit 2019

AltFi is coming to Berlin this Winter for our first annual Summit in the City.

18th November 2019