Based in San Francisco, Fintech Brex is Latest Company to Expand in Utah

San Francisco Losing Fintech Lustre

The Utah Governor’s Office of Economic Development (GOED) has announced that Fintech Brex will open its new location in the Salt Lake Valley. The new office is said to create up to 1,000 new jobs over the next seven years.

Val Hale, executive director at the Utah Governor’s Office of Economic Development, commented on the news saying Utah is the place for tech and Fintechs to expand.

“We’re pleased that Brex has chosen Utah, and we wish them the best as they continue to grow as a company.”

Brex was founded in San Francisco in 2017  creating B2B payments via corporate cards, rewards, and travel programs that are tailored to specific industries.

Brex, backed by Y Combinator Continuity, Peter Thiel, Max Levchin, and more, and has raised $315 million in equity and $100 million in debt capital.

Henrique Dubugras, co-CEO and co-founder of Brex, said the company has grown dramatically in the last year and they are excited by the move to Utah.

“We recognize the incredible talent working in Utah and look forward to continuing scaling alongside Utah’s Silicon Slopes.”

According to the state of Utah, Brex may earn up to 25 percent of the new state taxes it will pay over the seven-year life of the agreement in the form of a Utah Legislature authorized Economic Development Increment Finance (EDTIF) tax rebate. The GOED Board of Directors has approved a post-performance tax rebate not to exceed $2,736,847. Each year that Brex meets the criteria in its contract with the state, it will earn a portion of the total tax rebate.

Theresa Foxley, president and CEO of the Economic Development Corporation of Utah, said that Brex is notable as it confirms Utah as a national center for fast-growing Fintechs.

Other Fintechs have set up shop in Utah as the state has worked hard to burnish its business-friendly credibility.

San Francisco is suffering from recent press reports of a city government that is unable to deal with a homeless and drug crisis. The streets are said to be littered with feces and needles. It does not help that taxes in California are some of the highest in the US. While some Fintechs may have decamped across the Bay to Oakland, a growing number are choosing to expand beyond the boundaries of the Golden State.

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