techcrunch.com
Capital One is acquiring the fintech Brex for $5.15 billion—a stark drop from its $12.3 billion peak valuation during the 2022 boom. The deal highlights Silicon Valley’s schadenfreude over “unicorn stumbles,” but the outcome is bittersweet.
Early investors, particularly Ribbit Capital, are walking away with massive returns on their 2017 bets. However, later-stage backers who invested at multi-billion dollar valuations face a painful valuation haircut. Brex’s trajectory diverged sharply from its rival Ramp, which has since tripled in value to $32 billion.
The acquisition caps a turbulent journey for Brex. Founded by Brazilian Stanford dropouts, the company pivoted from VR to payments and survived a controversial 2022 decision to dump thousands of small business clients to focus on enterprises. For Capital One, the $5.15 billion price tag secures Brex’s tech stack, high-profile clients, and newly acquired EU banking license.
Read More
