Can Investors Bank on a Brex IPO Next Year?

Explore ways to invest in Brex stock as the company approaches its IPO date. Linqto* removes barriers to private markets and gives you access to invest in pre-IPO companies. Brex is recently available on the platform. 

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Notable Brex News

06/12/2024: Brex abandons co-CEO model, talks IPO
01/23/2024: Brex is Burning $17 Million a Month
04/26/2023: Henrique Dubugras, the 27-year-old behind Brex
Older news…

About Brex

Brex is a financial technology company that offers banking services to startups and small businesses. The company provides online software for corporate credit cards, business banking, expense management, business travel, and financial modeling. 

The company was founded by Henrique Dubugras and Pedro Franceschi, two Brazilian entrepreneurs. They met through a Twitter argument that led to a long friendship. 

The duo previously founded a startup called Pagar.me that they sold in 2016. They then attended Stanford together but dropped out within a year to start Brex. 

Brex started as a virtual reality company, but the founders quickly pivoted after joining the Y Combinator incubator batch in Winter 2017. 

The pivot resulted from the company and its Y Combinator peer’s struggles to get business credit cards without personal liability. 

Brex’s mission is to “empower employees anywhere to make better financial decisions.”

The company’s headquarters are in San Francisco, California. 

Ownership

Brex is a venture-backed fintech startup, counting several venture capital firms as investors.

Investors include the founders, employees, and the following prominent venture capital firms: Ribbit Capital, Y Combinator, DST Global, Kleiner Perkins, Lone Pine Capital, Greenoaks, Baillie Gifford, IVP, Tiger Global Management, and Peter Thiel.

Brex’s latest funding round was completed in October 2021. The company raised $300 million in a Series D-2 funding round.

October 2021 was near the peak of the IPO and private funding frenzy that came to an abrupt halt in early 2022. 

Brex previously raised $425 million just six months earlier. 

Funding Rounds

WordPress Data Table Plugin

Valuation

The last confirmed Brex valuation is $12.3 billion based on the Series D-2 funding round completed in January 2022.  

However, the valuations of most fintechs fell dramatically from their 2021 peaks, suggesting the Brex valuation is below the latest valuation. 

A fresh funding round in 2025 or 2026 would establish a more accurate private valuation.

Pre-IPO marketplace data suggests the valuation is closer to $4 billion as of December 2024. 

IPO Potential

The Brex IPO date is unknown, but could come as soon as 2025, pending financial performance. The company has yet to file for an IPO. 

In an interview in June 2024, Brex CEO Henrique Dubugras told TechCrunch:

I think that one important piece for having a lower volatility public company is being cash-flow positive and making money, which is something that we historically have planned for 2025. So, if that happens in 2025, [an IPO] will be soon after. But we need to get there first.

Fintech companies have suffered significant down funding rounds since 2021, in line with public fintech companies. Private startup valuations tend to lag as the down valuations discourage raising money in “down rounds”.

We may get clues about the potential Brex IPO date timing if the company hires an underwriter, files an S-1 confidentially, or if reporting discloses a Brex IPO date range. 

The company absorbed several large banking customers during the Silicon Valley Bank failure in early 2023. 

Brex will be required to file an S-1 with the U.S. Securities and Exchange Commission (SEC) to kick off the IPO process. 

How to Invest in Brex Stock

Buying pre-IPO companies involves complications and challenges because shares do not trade on public exchanges. Most individuals will need to wait until the IPO to invest when companies are publicly traded. 

That said, there are a few ways retail investors can access shares of pre-IPO companies or invest during the IPO. 

Here are some potential options to own Brex stock before, during, and after the IPO.

1. Access Brex stock pre-IPO

Pre-IPO investment platforms may offer Brex stock as early employees and other investors seek to liquidate shares before a Brex IPO, SPAC, or acquisition.

Investors may access pre-IPO investment opportunities, provided they are registered on the platform and act upon availability notifications. Investors must meet the SEC accreditation standard to be eligible for this kind of investment. 

Monitor pre-IPO investing platforms such as Hiive, Forge Global, EquityZen, and Linqto for share availability.

Minimum investments on these platforms range from $2,500 to $50,000 or more. It’s free to sign up to access data and deal alerts. 

Non-accredited investors can invest in pre-IPO companies via venture capital funds targeted at ordinary investors.

The Fundrise Innovation Fund (review) is the most promising of these funds for patient, long-term investors. The Fund owns multiple pre-IPO startups for a diversified portfolio.

Fundrise intends to grow this portfolio slowly and aims to offer investors long-term returns that outpace the stock market. 

Brex is not a current holding in the Fund. However, the company has indicated that financial technology (fintech) companies will be a foundational target sector. Read my review to learn more. 

Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.

2. Participate in the Brex IPO through a broker

When a company goes public, in-the-know investors can sometimes buy the stock during the IPO at the IPO price.

Traditionally, only Wall Street’s top customers could invest in IPOs. But now, retail investors can access IPOs through multiple participating discount brokers. 

The online brokers listed below allow investors to invest in IPOs even if they have limited funds in their accounts.

• TradeStation 
• Robinhood 

Your chances of accessing to specific high-demand IPOs increase when you have multiple IPO investing accounts.

TradeStation has a more established track record of accessing more than 360 IPOs and secondary offerings via their partnership with ClickIPO. 

But Robinhood has the advantage of Silicon Valley networks and a history of getting allocations for high-profile IPOs.

Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.

3. Buy the stock after the Brex IPO

Waiting for the IPO has advantages, such as access to more established financials after the first quarter of trading. Pre-IPO investing has limited financials.

IPOs often start with high stock prices, but valuations often fall after the first and second-quarter earnings reports expose significant numbers and trends.

For example, in 2021, Rivian and Robinhood were high-flying IPO stocks but fell more than 80% below their peak stock prices just six months after their respective IPOs.

Stock price declines can be excellent entry points for recent IPO stocks.

Avoid buying overvalued shares immediately after the IPO. Lockup expirations and earnings disappointments can lower the trading price in the short term and provide entry points for long-term investors. 

The most disruptive companies may perform better over a decade, so patience is key.

Frequently Asked Questions

Is Brex Publicly Traded?

No. Brex is not publicly traded. It is a private venture-backed startup.

Is Brex a Bank?

No. Brex is a financial technology company. Brex accounts are cash management accounts (not bank accounts).

The company works with multiple partner banks to provide FDIC-insured banking services and protected deposits.

Primary banking partners include Emigrant Bank, Fifth Third Bank, and JPMorgan Chase Bank, but the complete list of Brex partner banks is on their website and is subject to change. 

Cash not invested in government money market accounts is automatically swept into partner banks to be eligible for up to $6 million in total FDIC insurance. 

Brex applied for a banking charter in February 2021 but withdrew the application in August of the same year, citing the opportunity to strengthen the application and resubmit. U.K. fintech Revolut and the financial services provider Chime have also experienced challenges in becoming banks. 

What is the Brex Stock Price?

A public Brex stock price does not exist. It’s a private company. 

The most recent private funding round completed in January 2022 at $34.74 per share. The stock price as of December 2024 is closer to $12 per share, according to data provider Caplight. 

What is the Brex Stock Symbol?

The most likely Brex stock symbol is “BREX”. It is available on U.S. exchanges. 

We’ll confirm the Brex symbol if and when the company pursues a U.S. IPO. The Form S-1 filing with the SEC will contain the Brex ticker symbol confirmation.

Where is the Brex S-1 Filing?

A Brex S-1 filing is not available yet because the company hasn’t filed for an IPO. 

The document will become available if the company submits filings to the SEC and the regulatory commission approves and releases it to the public. 

We’ll post a copy of the S-1 filing on this page when it becomes available.  

You can monitor the most recent F-1 and S-1 IPO filings on this webpage.

Brex Stock IPO News Archive

01/23/2024: Brex is Burning $17 Million a Month
04/26/2023: Henrique Dubugras, the 27-year-old billionaire behind Brex
10/21/2021: Brex just signed a term sheet for $300M at a $12.3B valuation
08/09/2021: Brex withdraws ILC, deposit insurance applications
04/26/2021: Brex raises $425M at a $7.4B valuation
02/19/2021: Brex Files Application for Industrial Bank Charter

Additional Resources

• 11 Fintech startups in the IPO Pipeline

Conclusion

Investors get enthusiastic about investing in companies in high-growth areas such as fintech. 

But buying the stock of a non-public company is far more challenging than normal stock investing due to a lack of financial information and liquidity. 

Pre-IPO platforms now provide investors more with investment opportunities, though venture capital investment is still primarily reserved for the ultra-wealthy and VC firms. 

When pursuing IPO shares or early equity in companies like Brex, maintain reasonable expectations that you may not discover any opportunities to invest in Brex stock. 

Join and monitor pre-IPO platforms for the latest availability. 

Invest in pre-IPO and IPO companies with caution. Good luck if the Brex IPO is on your watch list.