Brex raises $100 million
Brex, a San Francisco-based provider of industry-specific corporate credit cards, raised $100 million at a $2.6 billion post-money valuation. Kleiner Perkins Digital Growth led, and was joined by fellow return backers YC Continuity, Ribbit Capital, DST Global, Greenoaks Capital and IVP. The company previously raised $125 million last fall at a $1.1 billion post-money valuation.
Why it matters: Because it reflects how lending-related startups believe they need fortress balance sheets, much like what we recently saw with SoFi.
Of note: CEO Henrique Dubugras tells me that he views the deal as a "repricing event" and that its size was, in part, dictated by VC market conditions: "Growth equity investors want to put a certain amount of money to work. Once you add in the existing investors with pro rata, $100 million is probably the minimum we could raise right now."
Bottom line: Brex launched in 2017 with cards specifically tailored to startups, but more recently expanded into e-commerce (now 1/3 of revenue) and now into life sciences. Dubugras says the life sciences offering will, for example, offer multipliers on purchases like lab supplies and conference costs.