When Pedro Franceschi and Henrique Dubugras met just over five years ago, they became inseparable over the mutual frustrations of having strict mothers that did not understand their ambitious and the love of coding.
The fears their mothers had for the hacking habits of the two was escalated after their two pre-teen sons were given legal notices through the mail for infringing on patents.
Franceschi received a legal threat from iPhone maker Apple after he discovered the first jailbreak to the smartphone.
Fast-forward to today and the pair, now 22, have announced a second successful payment business known as Brex valued at $1.1 billion. The $125 million Series C round was led by IVP, DST Global and Greenoaks Capital, and brings the full amount raised to approximately $200 million.
Brex, based in San Francisco provides founders of startups corporate credit cards with no deposit or personal guarantee. It is supported as well by Max Levchin and Peter Thiel the founders of PayPal, former CEO of Visa Carl Pascarella and other leading venture capitalists.
The new round of financing makes the founders some of the youngest in history and puts them into a rare group of startups that entered unicorn territory as an outrageous rate of speed. Brex was founded near the end of 2017 and launched its IPO in June of 2018.
Dubugras was busy at the age of 14 about his next attempt at a successful business after building an online game that became successful but had to shut it down after getting his notices of patent infringement.
After he closed the online game, Dubugras met Franceschi who is from Rio, while Dubugras is from the capital of Sao Paulo. The pair quickly began the company Pagar.me
They raised over $30 million for Pagar.me hired 100 people to work and were processing as much as $1.5 billion in transactions when they sold it.
They left Brazil for Silicon Valley and each enrolled in Stanford in late 2016. They failed with one company called Beyond and Brex was born in April of 2017. Its momentum was so strong the two dropped out of Stanford to run the business and now have grown it to its current $1.1 billion value.