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These 22-Year-Olds Built A $2B+ Business In 2 Years

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It all started with a legal threat from Apple from jailbreaking a phone. It ended with a $2.6B business, built in two years by two Brazilian college dropouts.

A little over a year ago, Pedro Franceschi and Henrique Dubugras, then 22, announced a $125M Series C for Brex, a payment business, securing them a $1.1B valuation.

Then just last summer, the pair raised an additional $100M, bringing the valuation to $2.6B.

“Brex is … one of the most exciting starts we’ve ever seen,” venture capitalist and investor Somesh Dash said in a statement.

This feat made the duo the youngest unicorn founders in history, as well as one of the fastest-growing companies in history. Brex was founded in the winter of 2017. And it only launched publicly in June 2018.

How did that happen?!

Unsurprisingly, both Brazilian-born young men grew up coding and it has fueled their success.

Pedro became the first person to jailbreak the iPhone 3G and later helped bring Siri—Apple’s voice assistance—into the Portuguese language. 

At 14, he had already built a successful online game but was forced to shut it down once Apple came knocking with threatening legal letters.

“I’ve had two failed attempts, one successful attempt and one on the way to being a successful attempt,” CEO Henrique Dubugras told TechCrunch in an interview.

While Pedro was getting sued by Apple before hitting puberty, Henrique was programming video games and coding at 12 and later went on to meet Henrique on Twitter. 

Then what?

When both were 16, they founded Pagar.me, which was the first developer-friendly payments processor to be introduced to Brazil. 

They went on to raise $30M and grew a team of over 100 people before selling the company. They then enrolled in Stanford University, spending just eight months there. 

“We wanted to come to Silicon Valley to build stuff because everything here seemed so big and so cool,” Dubugras said.

Before leaving, the co-founders were under the impression the payment problems they had addressed for Brazil didn’t exist in the US. So they aimed to start a virtual reality startup instead called Beyond, later entering YCombinator.

“I think three weeks in we gave it up,” Dubugras said. “We realized we aren’t the right founders to start this business.”

Instead, the duo decided to do what they were good at—payments. So, they pivoted and used their experience to form Brex, a company that issues corporate cards for startups in the tech space.

YC gave them a $120K seed investment to back their vision, and they went on to collaborate with  Peter Thiel and Max Levchin, PayPal’s co-founders, and two giants in the payment space.

So what does Brex do exactly?

In a nutshell, Brex is a system for founders. One, it provides businesses a consolidated look at their spending. At the end of each month, for example, a CEO can easily see how much the entire company spent on Uber.

In addition, Brex can give entrepreneurs a credit limit up to 10 times what they’d receive through traditional channels. Brex also issues virtual credit cards moments after completing an online application.

“We have a very similar effect of what Stripe had in the beginning, but much faster because Silicon Valley companies are very good at spending money but making money is harder,” Dubugras explained.

The idea has proven beyond viable, with the company increasing its monthly revenue sixfold in the short time between October 2018 and June 2019, and they show no signs of slowing down. 

So what’s next?

According to the founders, Brex will launch a rewards program built with the needs and spending patterns of founders in mind. Next, the goal is to figure out how to grow the business’s client base beyond only tech startups.

“We want to dominate corporate credit cards,” Dubugras said. “We want every single company in the world, whenever they do businesses expenses, to do it on a Brex card.”

 

Featured Image Credit: Brex

Entrepreneurs

The Top 10 Investment Opportunities To Capitalize On During A Recession

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A recession can be a challenging time, but it can also present opportunities for investors to make smart investment decisions.

During a recession, certain industries tend to perform better than others, and identifying these opportunities can be the key to success.

Here are the top 10 investment opportunities to capitalize on during a recession:

1. Defensive Stocks

Defensive stocks are those that tend to perform well EVEN during economic downturns.

These include companies that provide essential goods and services, such as healthcare, utilities, and consumer staples.

Defensive stocks may not offer the highest returns, but they can provide stability and protection during a recession.

Defensive stocks include Johnson & Johnson, Procter & Gamble, PepsiCo, and Walmart, among others. (You can buy them all inside the NYCE app.)

2. Gold

Gold is often seen as a safe haven during times of economic uncertainty.

As a tangible asset, it can provide a hedge against inflation and currency fluctuations. During a recession, the price of gold may rise as investors seek a safe haven for their money.

READ: 3 Ways To Invest In Gold (In 3 Minutes Or Less)

3. Real Estate

Real estate can be a good investment opportunity during a recession. Especially if you are looking for a long-term investment. (Hence why NYCE exists.)

While property values may dip during a recession, they tend to recover over time. In addition, rental properties can provide a steady stream of income, even during a recession.

After all: Real estate has created more millionaires than any other asset class.

4. High-Quality Bonds

High-quality bonds, such as U.S. Treasury bonds, can be a safe investment during a recession.

These bonds are backed by the full faith and credit of the U.S. government, which makes them less risky than other types of bonds. (Though this has become less safe today than in the past.)

They may not offer the highest returns, but they can provide stability and protection during a recession.

5. Consumer Discretionary Stocks

Consumer discretionary stocks are those that are tied to consumer spending, such as retail, travel, and entertainment companies.

During a recession, these stocks may suffer as consumers cut back on non-essential spending.

However, if you believe that the economy will recover, investing in consumer discretionary stocks can be a good bet.

6. Healthcare Stocks

Healthcare stocks tend to perform well even during economic downturns, as people still need healthcare services regardless of the state of the economy.

In addition, the aging population in many countries is driving demand for healthcare services, which can provide long-term growth opportunities for investors.

7. Technology Stocks

Technology stocks can be a good investment opportunity during a recession, as many companies in this sector have strong balance sheets and cash reserves.

In addition, the shift towards remote work and online shopping during the pandemic has increased demand for technology products and services.

8. Emerging Markets

Emerging markets can be a good investment opportunity during a recession, as these countries may be less affected by the economic downturn than developed countries.

In addition, emerging markets often have higher growth rates than developed countries, which can provide long-term growth opportunities for investors.

9. Dividend Stocks

Dividend stocks can be a good investment opportunity during a recession, as they provide a steady stream of income even during tough economic times.

Look for companies with a history of paying dividends and a strong balance sheet.

10. Cash

Finally, cash can be a good investment during a recession, as it provides flexibility and liquidity. Having cash on hand can allow you to take advantage of investment opportunities as they arise.

In conclusion, while a recession can be a challenging time for investors, it can also present opportunities for smart investment decisions.

By identifying the top investment opportunities during a recession, you can position yourself for long-term success.

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Entrepreneurs

From Zero to Millionaire: How 9-5 Marketing Guy Made A Fortune Selling Pet Rocks As A Joke (1)

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No BS—this is actually a real story.

The pet rock—a seemingly ridiculous idea—became a sensation and made its creator, Gary Dahl, a millionaire in the 1970s.

Dahl, a marketing executive, came up with the idea as a joke during a conversation with friends.

He packaged rocks in a cardboard box with holes and called them “pet rocks,” complete with an instruction manual on how to care for them.

There was virtually no upfront investment, as the rocks themselves were free, and the packaging was inexpensive.

“It was a joke,” Dahl told ABC News years later. “It was a satire. It was fun. And it became an overnight success.”

The pet rocks became an instant hit, with Dahl selling over a million of them in six months.

LEARN: How to build a $100K side hustle in 1 hour.

He appeared on popular TV shows and even wrote a book about his success. The pet rock craze died down after a year, but Dahl had already made his fortune.

After the pet rock craze died down, Gary Dahl continued to work in marketing and advertising.

He also tried to launch other novelty products, such as “sand-breeding kits” and “mood rings,” but none of them achieved the same level of success as the pet rock.

“I think that’s one of the things that is wrong with business today. People are so serious, they forget to have fun,” Gary Dahl said.

The success of the pet rock shows that sometimes the most unconventional ideas can lead to great success.

Case Study: How A $49 Investment Could Make You $100K+ In 6 Months

Why Gary’s story matters to you…

The story of Gary Dahl and his pet rock is a testament to the power of thinking outside the box. Sometimes, it’s the seemingly ridiculous ideas that can lead to the biggest successes.

Dahl’s story is not only inspiring, but it’s also a reminder to keep a sense of humor and not take ourselves too seriously.

In business, it’s easy to get bogged down in strategy and analysis, but we should never forget the importance of creativity and fun.

The success of the pet rock is also a lesson in the power of marketing.

Dahl’s packaging and instruction manual turned a simple rock into a desirable product. It’s a reminder that sometimes it’s not the product itself that’s important, but how it’s presented to the world.

So if you’re feeling stuck in your business or just need a little inspiration, take a cue from Gary Dahl and his pet rock.

Keep an open mind, don’t be afraid to take risks, and don’t forget to have a little fun along the way.

Who knows…you might just come up with the next big thing.

About author:

wealthlab is a platform for hustlers, doers, entrepreneurs and investors to do epic s&%. Our mission is to create 100M new investors worldwide. Join our academy here.*

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Business

How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀

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I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.

I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.

(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)

There’s the 1031 exchange, of course, which I’ve shared with you guys before. 

Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.

But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.

So I thought I’d share it with you guys. 💎

You can check it out here.

Let me know what you think. 😎

PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.

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