Exponential Markets creates a series of financial instruments and derivatives that settle against Exponential-powered indices to offer financial protection for participants across a variety of asset classes. The company leverages datasets to design tradable instruments targeting asset classes that lack effective risk-management tools. Led by CEO Ryan Naughton, Exponential is focused on building tools that allow hedgers to offset exposure to adverse price movements. The firm intends to use the latest funding to further develop risk-mitigation tools for the automotive ecosystem. Financially, the company’s most recent seed round and strategic investment brought total capital raised to over $10M. The articles do not disclose revenue or other operating metrics. Exponential Exchange, led by CEO Ryan Naughton, is creating a series of financial instruments and indices designed to offer new levels of financial protection for participants in various asset classes. Its initial product, the Exponential Used Vehicle Index, tracks used vehicle values using data sets and modern data science techniques. The company’s tools aim to let hedgers offset exposure to adverse price movements via derivatives that settle against Exponential-powered indices. Exponential targets customers such as rental car companies, auto insurers, and auto lessors to enable transfer of their financial exposure to other market participants. The firm plans to pilot multiple over-the-counter (OTC) transactions while building infrastructure required for exchange-traded futures. Financially, Exponential closed a Seed round that brought its total capital raised to $8.8M. Exponential Exchange is building a suite of market-based risk-management products using modern datasets and data science techniques. Its launch product is an exchange-traded derivative designed to manage fluctuating used-vehicle prices, aimed at large vehicle owners such as rental agencies and auto lease finance companies. The company is also developing automotive futures contracts that, subject to regulatory approval and listing on a designated contract market, would create a new tradable asset class for auto-related exposures. Led by CEO Ryan Naughton, Exponential Exchange intends to use recent funding to accelerate growth and expand operations. The startup is focused on offering efficient derivatives contracts to help financial markets and institutions better manage both traditional and emerging sources of risk.

Total raised

$9M

Funding rounds

3

Latest round

Seed

Latest activity

Jul 2023