As Dubugras puts it, “You pay or you pay.” (If a company doesn’t pay, it’s generally because it has run out of money and failed, he adds.) Brex credit card balances must be paid off at the end of each month, or the card is canceled-meaning it essentially offers a 30-day loan in the form of a charge card. “A big part of the money is just going to be sitting there in case anything goes wrong,” says Dubugras, citing fraud and other potential problems.īut Brex is not shouldering as much of the risk as traditional banks and card underwriters. But the bulk of the capital will function as a cushion given the risks of providing credit to fledgling startups. The new funding, bringing Brex’s total capital raised to $57 million, will go in part towards expanding the company’s 30-person headcount and marketing, with a goal of reaching $300 million in spending on its cards this year, and $1.5 billion by the end of 2019. In total, Brex now has more than 1,000 customers (counting multiple employees from the same company separately). Brex has also landed some larger clients, including lending startups SoFi and Affirm ( founded by Brex backer Levchin), and genetic testing startup Color Genomics. Since launching a beta version of Brex last September, the company has signed up most of the startups in its Y Combinator class and subsequent batches, including more than 25% of the current summer 2018 batch that just began this month. “We want to be the best corporate card for startups.”

“We just look at cash-how much investors gave you,” Dubugras explains. So Brex came up with a plan to fill that need: a credit card that does not require proof of cash flows, a security deposit or a FICO credit score for approval-only $100,000 (or more) in a bank account.

“This has been a longstanding pain point for many of our founders,” Anu Hariharan, a partner at Y Combinator Continuity, added in a statement.

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