Exponent Founders Capital, Led by Alumni from Plaid and Robinhood, Secures $75 Million for Early-Stage Startups Investing

Early-Stage Venture Firm Emerges from Stealth with Strong Fundraising Results

TechCrunch is proud to report that Exponent Founders Capital, an early-stage venture firm founded by alumni of startups such as Plaid, Robinhood, and Ramp, has closed on $75 million in capital commitments. This significant milestone marks a major achievement for the firm, which is emerging from stealth mode today.

Background and Founding

Exponent was co-founded by Managing Partners Charley Ma and Mahdi Raza, both of whom have impressive backgrounds in the startup ecosystem. Ma was one of the first business hires at Plaid, where he led fintech and developer sales in San Francisco and helped build out the company’s New York office. Later, he joined Ramp as its head of growth, helping launch its corporate card. Most recently, Ma served as the head of growth at Alloy, an identity and risk infrastructure platform for financial institutions.

Raza, on the other hand, has a background in fintech and technology investment banking at Evercore and investing at GIC. He worked in growth and payments at Robinhood before joining Stytch to lead early growth there. The pair met while working at different companies and decided to team up to start their own venture firm.

Investment Thesis

Exponent focuses on enterprise SaaS, fintech, and other emerging technologies with high growth potential. The firm is particularly interested in startups that are tackling complex problems and have the potential to disrupt existing markets.

"We’re looking for teams with a strong vision and a deep understanding of their market," says Ma. "We want to back entrepreneurs who are building solutions that will change the world."

Fundraising Challenges

Despite the challenges posed by fundraising in 2023, Exponent was able to secure $75 million in capital commitments. The firm was deliberately targeting long-term, non-profit institutional investors for its second fund, with a target of $60 million and a hard cap of $75 million.

"Everyone we talked to gave us the advice that this was the worst time to fundraise in the last decade," admits Ma. "But we were starting to get pulled into a few institutional LP conversations, so we decided to kick off our fundraise in earnest in April."

Portfolio and Future Plans

Exponent’s portfolio includes a diverse range of startups across various industries. The firm is committed to supporting its portfolio companies through every stage of their growth, from seed to series B and beyond.

"We’re not just investors; we’re partners," says Raza. "We work closely with our founders to help them navigate the challenges of building a successful startup."

With its strong fundraising results and impressive team, Exponent is well-positioned for success in the venture capital space. The firm’s commitment to backing innovative startups and supporting their growth will undoubtedly make it a major player in the industry.

About the Authors

Mary Ann Azevedo is a Senior Reporter at TechCrunch, covering fintech, venture capital, and startup news. With over 20 years of experience in business reporting and editing, she has earned numerous awards for her breaking news coverage.

Charley Ma and Mahdi Raza are the co-founders of Exponent Founders Capital, an early-stage venture firm focused on enterprise SaaS, fintech, and emerging technologies.