Brex drops tens of thousands of small business customers as Silicon Valley adjusts to new reality

  • 📰 CNBC
  • ⏱ Reading Time:
  • 29 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 72%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

The move is the latest sign of a sea change occurring among start-ups as an abrupt shift in market conditions is forcing a new discipline on companies.

Dubugras said that he and his co-founder Pedro Franceschi made the decision in December as their start-up customers became increasingly demanding. Plunging valuations for public companies soon bled over into the private realm, hammering valuations for pre-IPO companies and forcing firms to focus on profitability.

At the same time, the traditional brick-and-mortar small businesses that Brex began adding in a 2019 expansion flooded support lines, resulting in worse service for the start-ups they valued more, he said. The initial news of the announcement caused mass confusion among Brex customers, spurring Franceschi to tweet about the move, Dubugras said.

The pair mistakenly thought that expanding services to more traditional small businesses would be a simple move. Instead, the needs of the two cohorts were different, requiring a different set of products, he said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines