SAN FRANCISCO — Kruze Consulting, a CFO consulting company for startups, has released new data on the best credit cards for startups. The data comes from analysis of the 450+ venture-funded startups clients at Kruze. Full details can be found on Kruze’s Best Startup Credit Cards page, but the data reveals just how popular Brex has become amongst startup founders. With nearly 0% market share in 2018, Brex now commands more than 50% of the market share for startup credit cards. Ramp is also making a rapid push into the space while the traditional players, like Amex and Chase, have seen declining market share.
“Deciding what credit card to choose is something we are asked about all the time at Kruze. Right now, it’s all about expense management tools and we are seeing every major card compete over the best digital offering they can bring to market,” said Scott Orn, COO of Kruze Consulting. “The early innovation on Founder’s personal credit guarantees, digital tools and integrations has given Brex a commanding lead in the market. Brex has made the opportunity clear and we are seeing great innovations pushing the sector forward from newcomers like Ramp.”
Since 2018 Chase, American Express and Capital One have seen their market share decline from approximately 75% to 35% in 2021. This is due in large part to the ascendance of Brex but also from innovations at Ramp and Silicon Valley Bank. Brex has gone from 0% in 2018, to 55% of the market share in 2021. Since launching in 2020, Ramp has quickly gained 5% of the market share while SVB has leveraged their founder-friendly card to hold steady between 20-30% over the last few years. American Express has declined from 30% market share in 2018 to 15% in 2021.
Competition for startup business amongst the corporate credit card players is at an all time high. This competition is being driven by technology offerings, especially focused on expense management, and it’s clear that the offerings from Brex and Ramp are compelling to startup founders. The stage is certainly set for an interesting future as the incumbent players figure out how to grapple with this new threat to their business.
Kruze provides Startup CFO Consulting to over 500+ startups in Silicon Valley, Los Angeles, New York, and other major startup hubs. To date, Kruze’s clients have raised over $5.5 billion in venture capital and are market leading Saas, software, eCommerce, eHealth and FinTech startups.