00:35:50 · Henrique Dubugras, Nik Storonsky, Henrique Dubugras
[00:35:50] S1: And this is all yourself. You're just building, you know, the prepaid card. And you need to get like a provider. Who was your first provider for prepaid card? Your first bank partnership or? [00:35:58] S0: It was actually... Big then it was called the Optimal Payments. They were issuing bank. I think they later became PaySafe. [00:36:06] S1: PaySafe? Yeah. Okay. So they were kind of like your bin sponsor. [00:36:09] S0: Yes, exactly. [00:36:10] S1: Early on. And then you had a processor back then, [00:36:12] S0: are you used So it was GPS. GPS? GPS. Yeah. [00:36:18] S2: This episode of HD in HD is brought to you by a brand that's close to my heart, Brex. When we started Brex, it wasn't just about creating another financial product. It was about solving the real gritty challenges that founders and startups face every day. Building something from the ground up is hard enough without having to navigate clunky legacy banks with endless fees. That's why Brex is the financial stack that scales with you no matter where you are in your journey. From maximizing runway to earning yield on your cash, Brex was designed to make every dollar count. So you can focus on what really matters, building your dream. So whether you're just getting started or you're ready to take on the next big thing, Brex has your back. Check it out and see why the world's most innovative startups like Anthropic, Scale AI, and Robinhood trust Brex.
00:36:18 · Henrique Dubugras, Henrique Dubugras, Nik Storonsky
[00:36:18] S2: This episode of HD in HD is brought to you by a brand that's close to my heart, Brex. When we started Brex, it wasn't just about creating another financial product. It was about solving the real gritty challenges that founders and startups face every day. Building something from the ground up is hard enough without having to navigate clunky legacy banks with endless fees. That's why Brex is the financial stack that scales with you no matter where you are in your journey. From maximizing runway to earning yield on your cash, Brex was designed to make every dollar count. So you can focus on what really matters, building your dream. So whether you're just getting started or you're ready to take on the next big thing, Brex has your back. Check it out and see why the world's most innovative startups like Anthropic, Scale AI, and Robinhood trust Brex. [00:37:07] S1: Okay. So you started... You brought this team in house and they were building of these partners that you got in. And how long did it take you from starting to build to launching? [00:37:15] S0: Eighteen months. [00:37:17] S1: Eighteen? Oh, so it's kinda like a long build. Like in, you know... [00:37:21] S0: It was... I think in a beta version, like in our... We were testing already around like within twelve months, but on official launch, we... Official launch to external people to a lot of external people to... In eighteen months. [00:37:32] S1: And did you fund all of it yourself or you like kind of raised money in the machine?
00:37:32 · Henrique Dubugras, Nik Storonsky
[00:37:32] S1: And did you fund all of it yourself or you like kind of raised money in the machine? [00:37:36] S0: Yeah. No, I funded all myself. And then when we started having our first customers, I raised money because I was running out of money. [00:37:42] S1: Oh, interesting. And you applied to YC at some point, I think, right? [00:37:45] S0: Yeah, I did. Yeah. [00:37:46] S1: I think you were YC's biggest miss ever. Don't there's a company that's more successful than Revolut that like YC missed. When was this? Do you remember [00:37:55] S0: kind of? It was 2015, probably '20 Yeah. [00:38:02] S1: And that's when you launch or that's when you... [00:38:05] S0: I think I applied before we launched officially, yes. [00:38:08] S1: Before we launched. So you're kind of trying to raise money a little bit at this point or... [00:38:12] S0: No, for me it was... Yeah, I think back then, you know, I wanted to raise money already because I know I was, you know, running out of cash. And the advice was first to go to Accelerator.... Types of, you know, Accelerator or YC because then they'll promote you to other investors. Because I was starting pitching to investors and, like, every single investor declined me. And someone gave me advice, okay, why don't you go to Accelerator? Then you have a wider reach of investors, and then they will also prepare you to fundraise. [00:38:42] S1: Interesting. Why do you why do you think, like, looking at your pitch with, you know, now back then, like, why do you think you didn't get in?
00:38:42 · Henrique Dubugras, Nik Storonsky
[00:38:42] S1: Interesting. Why do you why do you think, like, looking at your pitch with, you know, now back then, like, why do you think you didn't get in? [00:38:48] S0: I don't know. To be honest, back then, I already realized that that is accelerators took too much or take too much in equity, right, for what they provide. And back then, I wasn't already, you know, that motivated [00:39:02] S1: Yeah. [00:39:02] S0: To get it done because I just apply it and then see what happens. And then if they would accept, then I would start really looking this seriously. [00:39:10] S1: Oh, interesting. Okay. So it was more like an optionality thing. It's a kind [00:39:14] S0: of thing. It happens nice. You know, it's not an option, but it doesn't. [00:39:17] S1: And how much of your own money did you spend between raising money and... [00:39:22] S0: Well, I wasn't working for two years, right? So probably I spent like probably 700 ks on business plus and personal expense. But [00:39:31] S1: that was like a big percentage of your money? [00:39:33] S0: Say again? [00:39:33] S1: Was that a big percentage of your money that way? [00:39:35] S0: Yeah, it was. Yeah. Like I think overall my cost for this year was 1,000,000 plus. Personal Oh, plus. [00:39:41] S1: Yeah. So it's probably like the risk. It's a lot of risk, right? To like spend this out of your own money and like do it. [00:39:46] S0: I mean, to be honest, you're like, I always had this attitude that I can always, you know, make money. So I wasn't really scared at all.
00:39:46 · Nik Storonsky, Henrique Dubugras
[00:39:46] S0: I mean, to be honest, you're like, I always had this attitude that I can always, you know, make money. So I wasn't really scared at all. [00:39:55] S1: So you're like, look. Worst case scenario, if it doesn't work, [00:39:57] S0: I just get, like, a job. Just have a job, exactly. [00:39:58] S1: Yeah. And finance and make millions of dollars again. Yeah. [00:40:01] S0: Kind of. Yeah. [00:40:01] S1: Yeah. Makes sense. That's a really good, like, safety net. [00:40:05] S0: Yeah. [00:40:05] S1: Yeah. Cool. So so then you started Revolut. You got to use first team. And then when you raised your first money? [00:40:11] S0: 2,015 as well. [00:40:12] S1: Was After launch? Before launch? [00:40:14] S0: It was just before launch. So we... I think we closed in May. We agreed to deal in May, and then in June or July, I launched. [00:40:22] S1: What were the kind of, like, early terms back then? [00:40:25] S0: Pretty bad for me. I think they gave me 1 or 1,500,000 at 6,000,000 pre. [00:40:34] S1: 6,000,000 pre? Yeah. Well, I'll tell you my first deal and you can see, you're gonna feel better about yours. My first deal was 300 ks for 60% of the business. [00:40:41] S0: Oh, it's crazy. [00:40:42] S1: In Brazil. So, you know, the market's definitely got frothier since then. [00:40:48] S0: Yeah. No, I think it makes sense. Right? Because reality is, I think bigger than like a lot of companies were undervalued.
00:40:48 · Nik Storonsky, Henrique Dubugras
[00:40:48] S0: Yeah. No, I think it makes sense. Right? Because reality is, I think bigger than like a lot of companies were undervalued. [00:40:55] S1: Yeah. Well, they weren't the big outcomes, right? So it kind of justified the... Yeah. And did you think it was a great valuation back then or no? You thought it was okay. [00:41:04] S0: I was running out of money. I took whatever I had. [00:41:06] S1: But did you think, wow, I got a great deal or now you're like, I got a shitty deal, but it is what it is. [00:41:12] S0: No. I wanted to take money as soon as possible and then I just focus on. [00:41:16] S1: So you want... You're like, hey, I won. You know, I got money, which is what I'm... [00:41:19] S0: Yeah. And then, you know, because I was already fundraising, it was... I spent already like five or six months fundraising. Everyone said no. Oh So for me it was a... So it [00:41:28] S1: was a hard fundraising? [00:41:29] S0: It was super hard. [00:41:30] S1: Yeah. Interesting. [00:41:31] S0: It was London, Plus in London, there is no kind of... Back then there wasn't that much many VCs. So it was very, very hot. [00:41:41] S1: What was the biggest pushback that people had back then? [00:41:44] S0: I mean, they were all selling now. Like, unit economics doesn't work. How you make money? It's monetization. Yeah. They were so kind of spreadsheet focused rather than product focused. And for me, it was always, you know, I'll I'll figure out economics later. I just need volume first.