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Capital One to acquire Brex for $5.15B

reuters.com

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Re: Capital One to acquire Brex for $5.15B

#51

Post by paxys »

rvz wrote: post #17
paxys wrote: post #13

Sold for $5.15B. Brex last raised $300M in Oct 2021 at a $12.3B valuation.

That is a 50% discount, which isn't great for those who got into the latest round. Seems like Capital One is very excited on the deal and announced it earlier while Brex hid the announcement and made it hard to find. (It's on the Brex [0] journal directory, but you cannot see it featured on its front page) What (really) happened? [0] https://www.brex.com/journal

Late round investors at least have liquidation preference. It's the worst outcome for employees.

Re: Capital One to acquire Brex for $5.15B

#54

Post by fragmede »

n2d4 wrote: post #34
rvz wrote: post #17

Earlier quoted context omitted.

That is a 50% discount, which isn't great for those who got into the latest round. Seems like Capital One is very excited on the deal and announced it earlier while Brex hid the announcement and made it hard to find. (It's on the Brex [0] journal directory, but you cannot see it featured on its front page) What (really) happened? [0] https://www.brex.com/journal

This is a weird theory. Brex sent an email to all customers, alongside posting everywhere on social media. You are making your conclusions because they didn't put the announcement on their landing page?

Some people, (eg people who aren't already Brex customers), aren't going to get that email, and aren't following Brex's social media presence. They may not even have a social media account of their own, not even a Linkedin. The only way they would hear about is is via their landing page.

How much you use social media, and are a Brex customer, is going to influence how big you think that group of people is, but it's for sure, non-zero.

Re: Capital One to acquire Brex for $5.15B

#55

Post by echelon »

Ancalagon wrote: post #53
nemath wrote: post #50

Should they have continued growing for a while before selling or was now the best ever time?

I feel like one of their primary investors wanted out. It was probably not the opportune time considering the cost of money right now.

Do you think the founders were strong-armed and are pissed at this outcome?

Re: Capital One to acquire Brex for $5.15B

#56

Post by echelon »

bflesch wrote: post #42
aluminussoma wrote: post #33

Earlier quoted context omitted.

Different businesses. Stripe main business is a payment processor. Brex provides credit.

From website footer: > Brex is a financial technology company, not a bank. The Brex business account consists of Checking, a commercial checking account provided by Column N.A., Member FDIC, and Treasury and Vault, cash management services provided by Brex Treasury LLC, Member FINRA/SIPC.

Stripe is a much bigger business with hands in all sorts of instruments, chiefly payments processing.

Do you know how many businesses move money on Stripe rails? It's wild.

Re: Capital One to acquire Brex for $5.15B

#57

Post by 0xy »

bflesch wrote: post #45
testfrequency wrote: post #30

Does this mean Stripe is worth $1B?

Stripe has for years helped non-EU companies to do tax fraud in the EU, and in a just world their management would be charged. Every time a customer in the EU pays with Stripe, they exactly know if they are a private customer or not and in which country that customer is located in. Stripe also knows who the counterparty is ("their merchant"). Yet Stripe systematically enabled their merchants to avoid paying appropria…

Stripe aren't a MoR for most customers. This comment makes no sense.

Re: Capital One to acquire Brex for $5.15B

#59

Post by verdverm »

toomuchtodo wrote: post #28
verdverm wrote: post #20

Earlier quoted context omitted.

Typical HNer, started a startup around some tech. Brex refuses to do business, even though I had positive cash flow, they apparently only have clients with VC funding. (at least at the time, I don't know if they later changed their policy.

If you don’t mind me asking, who are you moving to? (in the industry, but not at a startup)

Probably over correcting to a local bank lol

I'm doing a consolidation / rebrand around the verdverm pseudonym this year

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