Brex’s announcement last week that it would stop serving small to medium-sized businesses upset — and upset — many of its abruptness and delivery.
Fintech Decacorn, which began its life as a startup and card provider for SMBs, began notifying customers last week that they would be disconnected from Brex’s services from August 15. Earlier this year, Brex announced a move toward serving enterprise customers. And from that standpoint “a big push” in software, the news wasn’t entirely shocking.
Still, many people were confused as to who would be affected, and CEO and co-founder Henrik Dubgrass told Meczyki.Net on June 17 that it would affect SMBs and companies that did not receive “professional funding”, such as venture capital. , For example. Some customers who are venture-backed received notices that they would be affected but were later reinstated.
In the post, Francesci expressed regret at the “poor job explaining this decision, which eroded some of the valuable trust” Brex had made over the years.
He added: “We did not clearly communicate who qualifies as a Brex customer going forward, which led to confusion about which companies Brex would still serve.”
And later he said:
Last week’s announcement was an incredibly disappointing moment for Brex. I signed outgoing emails, which lacked the transparency our customers deserved. As someone whose father was a small business owner, the way we communicated this decision weighed on me.
Francesci explained exactly who would be affected, noting the following criteria that a company needs to meet in order to retain as a Brex customer:
- Received an equity investment of any amount (accelerator, angel, VC or Web3 token).
- More than $1 million per year in revenue.
- More than 50 employees.
- Over $500,000 in cash.
- Tech startups that are on track to meet the above criteria and are referred by an existing customer or partner.
Is the missile too late to at least partially offset Brex’s reputation? Guess we’ll see.