Exponent Founders Capital Raises $125M Across Two Funds and Emerges from Stealth

Exponent Founders Capital, a venture firm co-founded by Charley Ma and Mahdi Raza, has secured $75 million for its second fund, bringing its total capital raised to $125 million. The firm had previously raised $50 million for its first fund in November 2021.

The pair of managing partners, Ma and Raza, formed Exponent after meeting while working at startups like Plaid and Robinhood. They had previously invested separately as angels before establishing their own venture firm. Exponent has backed around 40 startups from its first fund, with notable investments including Apollo.io, which raised $100 million at a $1.6 billion valuation, Chronosphere, which raised $115 million at a $1.6 billion valuation, and EvenUp, which secured $50.5 million in funding. The firm has also seen exits, such as the sale of software startup Tactic to TaxBit. 

Exponent aims to invest in 20 to 30 companies from its second fund, with a focus on the U.S. and Europe. The fund closed with oversubscription from limited partners like Carnegie Mellon University, Cook Children's Health Care System, LGT Group, and Next Legacy. The firm seeks to lead or co-lead early-stage rounds, with check sizes ranging from $500,000 to $5 million.  The new fund will allocate 75% towards early-stage investments and the remaining for follow-on investments.