Brex bid for SVB portfolios

The FDIC finally released the various financial institutions that bid for parts of Silicon Valley Bank’s portfolio. As our fellow fintech enthusiast Alex Johnson pointed out, there was one name that stood out on that list for being “not like the others”: fintech startup Brex.

TechCrunch spoke with Brex co-CEO and co-founder Henrique Dubugras, who confirmed that the company did in fact put its name in the hat for SVB but only for the early-stage and growth portfolios within its business.

The idea actually came from a customer, he said, who thought Brex “could handle those customers better than big banks.” The first week after the SVB meltdown, the FDIC was not going to accept any bids from entities other than banks. During that time, Brex worked to step up for SVB customers in other ways. Then the following week, the FDIC said it was open to selling it by parts — and also open to non-banks submitting bids.

“That’s when we submitted our bids,” Dubugras said.

While the offer didn’t pan out, he doesn’t regret Brex taking a shot at it. “In the end, we think it was just easier for them to sell the whole thing in one piece,” he added.

Still, the startup continues to “keep seeing [its] deposits materially increase,” as not every startup or early-stage that once banked at SVB wants to move their cash over to a big bank.

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