Exponential Exchange, a Washington, DC-based fintech startup focused on developing a broad spectrum of new market-based risk-management solutions, raised $1.4M in Pre-Seed funding (Convertible Notes).
The backers were not disclosed.
The company intends to use the funds to accelerate growth and expand operations.
Led by CEO Ryan Naughton, Exponential Exchange is developing a series of novel tradable financial instruments and derivatives to manage the new risks and opportunities posed by the transportation revolution. It uses modern data sets and data science techniques to power an innovative set of smart products, including derivatives contracts, that offer an efficient approach to managing traditional and new sources of risk.
The launch product is an exchange-traded derivative designed to manage the risks of fluctuating used vehicle prices – a significant problem for at-scale vehicle owners like rental car agencies and auto lease finance companies. In addition, Exponential’s automotive futures contracts will, subject to regulatory approval and listing on a designated contract market, allow financial markets to trade in a new asset class and better manage auto-related exposures in their portfolios.
FinSMEs
14/10/2022