{"id":617087,"date":"2023-03-12T08:56:42","date_gmt":"2023-03-12T13:56:42","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/12\/brex-ceo-is-trying-to-raise-over-1-billion-in-a-weekend-for-svb-related-bridge-loans\/"},"modified":"2023-03-12T08:56:42","modified_gmt":"2023-03-12T13:56:42","slug":"brex-ceo-is-trying-to-raise-over-1-billion-in-a-weekend-for-svb-related-bridge-loans","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/12\/brex-ceo-is-trying-to-raise-over-1-billion-in-a-weekend-for-svb-related-bridge-loans\/","title":{"rendered":"Brex CEO is trying to raise over $1 billion in a weekend for SVB-related bridge loans"},"content":{"rendered":"
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Brex CEO Henrique Dubugras<\/a> is currently working to raise over a billion dollars in a weekend to help fund an emergency bridge credit line<\/a> that he believes will help startup customers impacted by Silicon Valley Bank\u2019s collapse be able to make payroll next week. Dubugras declined to comment on how much capital has been committed for the credit line thus far, but said he\u2019s on back to back calls trying to get funds locked down.<\/p>\n

\u201cWe\u2019re working with a lot of lenders this weekend, to basically raise as much money as we can afford,\u201d Dubugras said. So far, over $1.3 billion of payroll loan requests has been made from over 500 applicants. \u201cThe same people who are requesting the $1 billion have around 10 billion in aggregate deposits [at SVB].<\/p>\n

The founder says demand is increasing every five minutes. And while Dubugras said that the final close is \u201cTBD\u201d he said it\u2019s \u201cvery likely\u201d they will close some capital.<\/p>\n

One question is if the terms of the deal will be favorable to founders, or, as one entrepreneur ominously suggested to me today, will the sharks come out?<\/p>\n

Brex is not disclosing the terms of the deal but said that they are not making money on these loans. \u201cThat\u2019s where we\u2019re working through to kind of get what the right rate is, but think about it this way: there\u2019s not a lot of information right now and coming up with over a billion dollars in a weekend, it\u2019s no easy feat,\u201d Dubugras said. \u201cSo you know, I think that we\u2019re just trying to see if we can figure something out that works for everyone and create an option.\u201d<\/p>\n

Another question is on the quality of applicants. As one founder told TechCrunch yesterday, onboarding an influx of people \u201cis the easiest way to invite fraud and get kicked out of the banking ecosystems.\u201d Dubugras said that the quality of SVB\u2019s customer base is \u201cpretty good.\u201d<\/p>\n

\u201cMost of the customers that we\u2019re getting are real startups that had real businesses with real deposits \u2013 and they\u2019re connecting the data to their SVB account that had real money in it,\u201d he said. \u201cWe\u2019re verifying that these customers are real customers for sure \u2013 that is not what I\u2019m worried about.\u201d<\/p>\n

\u201cI hope that the lesson for the industry is not, hey, if it\u2019s a bank that is not JP Morgan, it\u2019s unsafe. I think that will be terrible for our ecosystem and for America,\u201d he added. The lesson instead, Dubugras thinks, is for founders to distribute their risk. \u201cI think the safest place in my view for your money is not a bank account, it\u2019s in a money market fund, and a cash management account, so that\u2019s why do we do this at Brex.\u201d<\/p>\n

While Dubugras focuses on raising and asserts that Brex is operationally ready for this and isn\u2019t trying to make money off desperate founders, the company will have to prove they can pull this off.\u00a0<\/span><\/p>\n

As SVB fell, Brex was looked at as a formidable competitor seeking to benefit from the shifting of funds. Sure enough, sources tell TechCrunch that fintech was getting billions of dollars in deposits. Then SVB closed the wires, and hours later, was seized by the FDIC.<\/p>\n

\u201cThe reason we\u2019re doing it is obviously we want to support a community, that\u2019s very important,\u201d Dubugras said. \u201cThe business reason we\u2019re doing this is because we\u2019ll fund these loans and our business accounts, and we hope people stay our customers right after that.\u201d<\/p>\n

Dubugras isn\u2019t the only tech executive rallying others to help extend loans to founders. Another CEO is working to raise money for an emergency fund for climate specific startups, while others are looking at ways to create funding sources for historically overlooked and marginalized groups of founders.<\/p>\n

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Talk about a day I’ll remember for the rest of my life<\/p>\n

\u2014 Henrique Dubugras (@hdubugras) March 11, 2023<\/a><\/p>\n<\/blockquote>\n<\/div>\n

If you have a juicy tip or lead about happenings in the SVB fall out, you can reach Natasha Mascarenhas on Twitter @nmasc_ or on Signal at +1 925 271 0912. Anonymity requests will be respected.\u00a0\u00a0<\/em><\/p>\n<\/p><\/div>\n

Read More<\/a>
\n Natasha Mascarenhas<\/p>\n","protected":false},"excerpt":{"rendered":"

Brex CEO Henrique Dubugras is currently working to raise over a billion dollars in a weekend to help fund an emergency bridge credit line that he believes will help startup customers impacted by Silicon Valley Bank\u2019s collapse be able to make payroll next week. Dubugras declined to comment on how much capital has been committed<\/p>\n","protected":false},"author":1,"featured_media":617088,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[87,46,1446],"tags":[],"class_list":{"0":"post-617087","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-billion","8":"category-technology","9":"category-trying"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/617087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=617087"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/617087\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/617088"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=617087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=617087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=617087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}