Brex, a subsidiary of Capital One, is an American fintech company that offers credit cards and cash management accounts as well as a spend management software platform to startup technology companies.
 | |
Company type | Subsidiary |
|---|---|
| Industry | Fintech |
| Founded | January 2017 |
| Founders |
|
| Headquarters | Salt Lake City |
Key people |
|
| Products | Credit cards Cash management accounts Spend management software platform |
Number of employees | 1,100 (2025)[2] |
| Parent | Capital One |
| Website | brex |
History
editBrex was founded by Brazilian entrepreneurs Henrique Dubugras and Pedro Franceschi, both aged 22, on January 3, 2017.[3] They had previously founded an online payments company, Pagar.me, which they sold in 2016 to StoneCo, a Brazilian credit card processor, for "tens of millions".[4]
Brex began as a VR startup. The founders were accepted into the Winter 2017 batch Y Combinator's 12-week accelerator program; 3 weeks in, they pivoted the company to financial technology with the goal of providing credit cards to startups with venture capital funding but with limited credit history.[5]
By August 2018, the company had over 1,000 customers.[3]
In February 2021, the company applied with the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions (UDFI) to establish Brex Bank. It appointed Bruce Wallace, a former Silicon Valley Bank (SVB) executive as CEO.[6] A few months later, Brex invested in the Indian card startup Kodo.[7]
In August 2021, the company closed its headquarters in San Francisco and became headquarterless.[8]
In April 2022, Brex launched Brex Empower, a financial software platform to help people comply with their employers' expense policies.[9]
In June 2022, Brex exited the small and midsize businesses (SMB) market, shifting the company's focus to serving enterprise customers.[10]
Brex received billions of dollars in deposits from Silicon Valley Bank customers on March 9, 2023—a day prior to the collapse of Silicon Valley Bank.[11]
In May 2024, CNBC ranked Brex fourth on its 2024 Disruptor 50 list.[12]
In January 2024, Brex laid off 300 employees, or roughly 20% of its workforce due to slowing growth.[13]
In August 2025, the company gained a license to operate in the European Union.[14] That month, the company leased 100,000 square feet in South of Market, San Francisco.[15]
In April 2026, Capital One acquired Brex for $5.15 billion, equal parts cash and stock.[16] This was less than half of their 2021 valuation of $12.3 billion.
Funding history
editBefore the acquisition by Capital One, the company raised $2.3 billion in total equity financing.[17]
Micky Malka's Ribbit Capital led Brex's $7 million Series A shortly after its founding in 2017.[17]
In June 2018, the company raised $50 million in a Series B round from Y Combinator Continuity, Ribbit Capital, Peter Thiel, and Max Levchin.[18]
In October 2018, the company raised $125 million in a Series C round at a $1.1 billion valuation. The round was led by Greenoaks Capital, DST Global, and Institutional Venture Partners.[19]
In June 2019, the company raised $100 million in Series C-2 funding at a valuation of $2.6 billion. The round was led by Kleiner Perkins. Existing investors DST Global, Institutional Venture Partners, Y Combinator, and Greenoaks Capital also participated.[20]
In May 2020, the company raised $150 million in a Series C extension.[21]
In April 2021, the company raised $425 million in a Series D round at a $7.4 billion valuation. The round was led by Tiger Global.[22]
In October 2021, the company raised $300 million at a $12.3 billion valuation.[23]
References
edit- ↑ Azevedo, Mary Ann (June 12, 2024). "Fintech Brex abandons co-CEO model, talks IPO, cash burn and plans for a secondary sale". TechCrunch.
- ↑ Owens, Jeremy C. (January 22, 2026). "Capital One to buy S.F. fintech Brex for $5.15 billion". American City Business Journals.
- 1 2 Russell, Melia (August 4, 2018). "A buzzy startup raised $57 million from Peter Thiel and Y Combinator using these 19 slides". Business Insider.
- ↑ Schoenberg, Gregg (November 8, 2018). "Charge card startup Brex aims for decacorn success". TechCrunch.
- ↑ Rudgeair, Peter (October 5, 2018). "The College Dropouts Who Rode Credit Cards Into The Billion-Dollar Startup Club". The Wall Street Journal.
- ↑ Azevedo, Mary Ann (February 19, 2021). "Brex applies for bank charter, taps former Silicon Valley Bank exec as CEO of Brex Bank". TechCrunch.
- ↑ "Brex eyes international growth through stakes in overseas startups". San Francisco Business Times. May 27, 2021. Retrieved June 13, 2026.
- ↑ Calvey, Mark (August 19, 2021). "Exclusive: Brex joins Coinbase in embracing no-headquarters model". American City Business Journals.
- ↑ Azevedo, Mary Ann (April 13, 2022). "Fintech Brex bets big on software, lands DoorDash as a customer". TechCrunch.
- ↑ Lawler, Ryan (June 17, 2022). "Scoop: Brex exiting SMB market to focus on enterprise customers". Axios.
- ↑ Son, Hugh (March 10, 2023). "Fintech startup Brex got billions of dollars in Silicon Valley Bank deposits Thursday, source says". CNBC.
- ↑ "4. Brex". CNBC. May 14, 2024.
- ↑ Robison, Kylie (January 23, 2024). "Brex, the fintech giant valued at $12.3 billion, announced it will lay off 20% of its staff". Fortune.
- ↑ Bort, Julie (August 7, 2025). "IPO hopeful Brex scored major win to sell in the EU, plans UK expansion". TechCrunch.
- ↑ Scheier, Rachel (August 1, 2025). "Years after going 'headquarterless,' this fintech startup returns to San Francisco". CoStar Group.
- ↑ "Capital One Is Buying Startup Brex for $5.15 Billion". CNBC. January 22, 2026.
- 1 2 Loizos, Connie (January 22, 2026). "Capital One acquires Brex for a steep discount to its peak valuation, but early believers are laughing all the way to the bank". TechCrunch.
- ↑ "Fintech Startup Brex Collects $50 Million Series B". The Wall Street Journal. June 19, 2018.
- ↑ Clark, Kate (October 5, 2018). "How the 22-year-old founders of Brex built a billion-dollar business in less than 2 years". TechCrunch.
- ↑ Clark, Kate (June 11, 2019). "Brex valued at $2.6B with new cash from Kleiner Perkins". TechCrunch.
- ↑ Mascarenhas, Natasha (May 19, 2020). "Brex brings on $150M in new cash in case of an 'extended recession'". TechCrunch.
- ↑ Wilhelm, Alex (April 26, 2021). "Brex raises $425M at a $7.4B valuation, as the corporate spend war rages on". TechCrunch.
- ↑ Azevedo, Mary Ann (October 21, 2021). "Brex just signed a term sheet for $300M at a $12.3B valuation". TechCrunch.