The corporate spending company thus is bringing on generations of current and future accelerator batch startups from around the world as part of this deal. And while it may increase the number of users, Dubugras admits that it’s a customer acquisition play with the hope of potential upside.

“If you look at Brex’s cost of acquisition to get a startup; if they fail at Series A, we lose money” when looking at how much revenue is generated for us versus how much it cost to acquire the customer,” Dubugras explained. “If [the startup gets to] Series B or Series D, we make a lot of money.”

The move rings differently considering Brex’s April announcement that it was leaning more into the enterprise segment, and less into small businesses or non-professionally funded startups.

Sure enough, Dubugras did say that Brex is picky about who it works with. “It only makes sense because some of the startups do graduate and become larger companies…we don’t partner with any accelerator because if they don’t have a track record of delivering good companies, maybe it’s a nonprofit relationship.”

While it’s a bit of a long game play, partnerships also help Brex get an upper edge on competition, which includes the richly-funded and formidable Ramp, as well as a number of newer players in the corporate credit card space like Stripe and Rippling. After all, fintech companies are always looking for stickier ways to stay on a customer’s radar. So far, 80% of Y Combinator companies use Brex; we’ll see if the same adoption rings true for Techstars.

Brex is acting more and more like a venture capitalist over time by Natasha Mascarenhas originally published on TechCrunch

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