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Brex Raises $100M, Offers Financing Alternative To Startups

Brex, which offers a credit card for startups, has just raised $100 million, upping its total funding to $315 million.

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After less than a year since launching its business card, the company is now valued at $2.6 billion, according to some reports.

This latest round was led by Kleiner Perkins Digital Growth Fund. Existing investors also joined in, including Y Combinator Continuity, GreenOaks Capital, Ribbit Capital, DST Global, and IVP. It will use the capital to expand its corporate spending features and rewards, and also expand to a broader audience, Brex said in its press release.

Brex_Total_Funding

The company targets startups that struggle to score credit from traditional banks. You can do the math and think it over, but bottom line: that’s a lot of startups. As TechCrunch’s Kate Clark pointed out, the fact that it graduated from Y-combinator in 2017 doesn’t hurt either – that’s access to a group of young, hungry and too-risky-for-traditional bank startups.

The San Francisco company previously acquired another outfit to help in its mission. In March Brex snapped up Elph, a digital payments startup that specializes in cryptocurrency.

As our Editor in Chief Alex Wilhelm pointed out a few weeks ago when we first heard whispers of Brex’s new raise, one thing is clear: Brex’s massive capital raise, in a short period of time with big names, is a signal that its growth figures must be impressive. For this Y-combinator graduate, the demand is upping.

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