While Henrique Dubugras and Pedro Franceschi were giving up on their augmented reality startup inside Y Combinator and figuring out what to do next, they saw their batch mates struggling to get even the most basic corporate credit cards — and in a lot of cases, having to guarantee those cards themselves.
Brex, their new startup, aims to try to fix that by offering startups a way to quickly get what’s effectively a credit card that they can use without having to personally guarantee that card or wade through complex processes to finally get a charge card. It’s geared initially toward smaller companies, but Dubugras expects those startups to grow up with it over time — and that Brex is already picking up larger clients. The company, coming out of stealth, said it has raised a total of $57 million from investors, including the Y Combinator Continuity fund, Peter Thiel, Max Levchin, Yuri Milner, financial services VC Ribbit Capital and former Visa CEO Carl Pascarella. Y Combinator Continuity fund partner Anu Hariharan and Ribbit Capital managing partner Meyer Malka are joining the company’s board of directors.
“We want to be the best corporate credit card for startups,” Dubugras said. “We don’t require a personal guarantee or deposit, and we can give people a credit limit that’s as much as 10 times higher. We can get you a virtual credit card in literally five minutes, versus traditional banks, in which you’d have to personally guarantee the card and get a low limit, and it takes weeks to approve.”
Startup executives go to Brex’s website, sign up, and then put in their…