Same. I’m in the epicenter of the SF startup bubble and while I’ve seen tons of ads and heard all the hype, I’ve never met a single user. Anecdata of course, but I’m a little skeptical.
You might need a fancier card with a yearly fee - the chase sapphire reserve would probably give you $30k and the Amex platinum would give you something similar.
I'm at just under 100k/year, with both a discover and Visa at 25k limits, and a MasterCard at 5k. Not quite sure how it happened. Like you I also don't carry a balance.
That seems to be one of the points of differentiation then.
It says right on the landing page "no personal guarantee": https://brex.com/
That sounds pretty compelling to me to be honest. Creating a business entity to limit your liabilities only to then put your personal credit history on the line for business spending seems pretty dumb now that I think about it.
If it's not tied to personal credit, that might also mean it'd be easier for international founders who don't have a credit history in the US.
You have $10k limit and only $4k used. In the back of your mind you have a $6k runaway. In reality as soon as Amex feel over exposed your credit limit will cut to your current use, $4k.
Not sure I get the use case. We put down a small deposit for CC access. Moreover companies treat capital providers as commodities so if BoA offers better terms when a company matures then the startup ought to take it.
This is pretty much the classic line against any startup taking on an industry with established incumbents, and, as always, fails to account for the incumbents' complete lack of agility and the startup's long term vision.
This isn't to say that Brex will be a huge success. But rather, that your argument is one against any startup entering an established market.
Brex has disrupted the conventional credit model. By rebuilding the technology from scratch, they’ve reimagined underwriting so it doesn’t require personal guarantees. Brex assesses companies based on factors that matter – like cash in the bank and activity in the business
No. You haven't disrupted anything. You are doing what almost every single bank does when they issue a business line of credit. Cash in bank and business activity.
All you guys did was go after a market that has ZERO idea about how to talk to a bank and then secured a large number of customers within that market. And as another commentator said, once a startup grows, they will secure the best terms they can find. Good luck.
Being able to see who in the company made a charge and set limits per user is great. BofA did not have this functionality when I asked our banker ~6mo ago (for debit cards). Getting a virtual card right when you sign up was a great UX.
As a startup founder, why should I care about Brex in particular? I know startups are different in a lot of ways, but it's not clear how they're different when it comes to credit cards. The Brex website isn't much help.
I can chime in. Lot of SF Bay Area startups just go with someone like Silicon Valley Bank. Their sign up process is antiquated and painful. Their integrations with services such as QuickBooks or Xero is often unreliable. We had to put down a large sum in a collateral to simply be able to open a card. The online banking interfaces are super dysfunctional and slow. Corporate card rewards programs often suck. Customer support is super slow.
Signing up for Brex was super fast. Took like just a few mins. They integrate with accounting software pretty well. (Warning, still some bugs they have to work out.) We didn't need to put a collateral deposit to open a Brex card as it's a charge card, not a credit card. Their web dashboard is still very "v1" but it's already better than most banks I've used and it's getting better unlike most banks. Brex offers 4x points on ridesharing, 3x on restaurants, 2x on travel, 2x Recurring Software (SaaS), etc. Support? They respond to me on live chat even at 9 PM on a Friday in like 30 seconds. It's awesome.
Most likely the product of some number crunching: what does seem to provide a competitive advantage at a relatively low cost? Giving tons on points on travel is a bad idea, as business accounts tend to spend a lot on travel. But giving 4x points on ridesharing isn't as bad idea (nobody spends thousands of dollars per month on ridesharing on a single card).
I'm pretty sure the fees are not necessarily a factor in this calculation.
Even worse, Bre-X was the largest gold fraud in history. It was a completely fake gold mine in Indonesia that was worth billions on the Canadian stock market, back in the 90s.
They should just cut out the middle man and have the VC's pay Brex directly. Then Brex can establish monthly payments to other VC firms and various SF restaurants/landlords. Much more efficient than the current setup.
Very cool platform -- it's nice to see these sorts of things custom tailored for startups.
Now, for the elephant in the room:
If you ever get acquired, definitely call it a brexit internally. On that note I assume you got stuck with the name Brex _before_ all that happened, no?
It's tickling to see this dynamic new company with a name so close to an event that inspires such fiery passions in my country.
Recently I've noticed that The Sun, Britain's foremost tabloid and an ardent supporter of aforementioned event, have started shortening the name to "Brex" in a few of their headlines. [1]
And now I'm also thinking of another company that ended up renaming themselves to avoid connotations with the name of the original event that inspired the name of the subsequent event that may or may not have inspired the name of this product. [2]
38 comments
[ 3.5 ms ] story [ 79.1 ms ] threadI've seen the billboards, but haven't heard anyone use it
Brex (google.com) looks like the announcement of a Google product, but it's actually a Forbes article.
I would've also preferred a longer title (like the article headline) that told me what I was clicking on.
It looks like an interesting product, but I’m surprised that Chase or Amex hasn’t attacked the market segment.
It says right on the landing page "no personal guarantee": https://brex.com/
That sounds pretty compelling to me to be honest. Creating a business entity to limit your liabilities only to then put your personal credit history on the line for business spending seems pretty dumb now that I think about it.
If it's not tied to personal credit, that might also mean it'd be easier for international founders who don't have a credit history in the US.
This isn't to say that Brex will be a huge success. But rather, that your argument is one against any startup entering an established market.
No. You haven't disrupted anything. You are doing what almost every single bank does when they issue a business line of credit. Cash in bank and business activity.
All you guys did was go after a market that has ZERO idea about how to talk to a bank and then secured a large number of customers within that market. And as another commentator said, once a startup grows, they will secure the best terms they can find. Good luck.
Even the SBA (small business administration) requires personal guarantees, i.e. you're loaning money to yourself but giving someone else the interest.
Being able to see who in the company made a charge and set limits per user is great. BofA did not have this functionality when I asked our banker ~6mo ago (for debit cards). Getting a virtual card right when you sign up was a great UX.
I’d love a mobile app though.
Signing up for Brex was super fast. Took like just a few mins. They integrate with accounting software pretty well. (Warning, still some bugs they have to work out.) We didn't need to put a collateral deposit to open a Brex card as it's a charge card, not a credit card. Their web dashboard is still very "v1" but it's already better than most banks I've used and it's getting better unlike most banks. Brex offers 4x points on ridesharing, 3x on restaurants, 2x on travel, 2x Recurring Software (SaaS), etc. Support? They respond to me on live chat even at 9 PM on a Friday in like 30 seconds. It's awesome.
Why do card providers offer more points on some things than others? Aren’t their fees the same everywhere?
I'm pretty sure the fees are not necessarily a factor in this calculation.
Brex seems like a meaningful improvement over that.
Now, for the elephant in the room:
If you ever get acquired, definitely call it a brexit internally. On that note I assume you got stuck with the name Brex _before_ all that happened, no?
Recently I've noticed that The Sun, Britain's foremost tabloid and an ardent supporter of aforementioned event, have started shortening the name to "Brex" in a few of their headlines. [1]
And now I'm also thinking of another company that ended up renaming themselves to avoid connotations with the name of the original event that inspired the name of the subsequent event that may or may not have inspired the name of this product. [2]
[1] https://twitter.com/TheSun/status/1046513253843718144
[2] https://qz.com/510040/grexit-the-unfortunately-named-softwar...