Fintech startup Brex was among the bidders for SVB's early-stage and growth portfolios

Abstraction: Brex bid for SVB startup loan portfolios after FDIC opened non-bank bids

Key points:

• Brex co-CEO Henrique Dubugras confirmed the fintech bid for SVB's early-stage and growth loan portfolios after FDIC opened bidding to non-banks in the second week post-collapse
• Bid was inspired by a customer who suggested Brex "could handle those customers better than big banks"; bid did not succeed as FDIC preferred selling the whole portfolio in one piece
• Brex had previously applied for a bank charter in 2021 but later withdrew; Dubugras says becoming a bank is not part of future plans
• Brex continued seeing material deposit increases post-SVB as startups avoided moving to large banks
• Stripe processed $817B in transactions in 2022 and projected ~$1T for 2023; CEO John Collison cited market conditions as reason for delaying IPO

Connections: Brex · Silicon Valley Bank · Fdic · Stripe · Fintech · Startup Banking

Source: https://techcrunch.com/2023/05/14/fintech-startup-brex-among-the-bidders-for-svbs-early-stage-and-growth-portfolios/