[rjzotti]

I don’t understand the economics of Brex. I used to work for a large, analytics-savvy credit card company, and people would freak out if the percentage of customers going bad (not paying their debt) exceeded something like 3-5%. Given that VC-funded startups fail at a rate of 11/12, isn’t Brex effectively throwing money down a massive black hole, assuming they’re extending credit? And this is at the top of credit cycle, probably within a few years of a recession, where a higher than normal percentage of good debt will go bad too.