Failed 2023

    Brex (SMB Exit)

    Brex raised $1.5B serving SMBs then abruptly abandoned them to chase enterprise — destroying trust and brand loyalty.

    Founded → Closed

    2017 → 2023

    Funding Raised

    $1.5B

    Industry

    Fintech

    Country

    USA

    IdeaProof AI Failure Score

    58/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    65
    Burn Rate Risk
    70
    Founder Risk
    35

    Full Analysis

    Brex launched as a corporate credit card for startups and SMBs, becoming one of the fastest-growing fintechs ever. In 2022, Brex abruptly terminated all SMB accounts to refocus on enterprise clients — the very customers who built the brand. The pivot alienated the startup community and raised questions about Brex's ability to execute. While Brex survives, the SMB business was effectively killed, representing billions in lost potential value.

    Could This Failure Have Been Prevented?

    IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Brex (SMB Exit).

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