Exponential Markets receives strategic investment from Citi

Exponential Markets announced a strategic investment from Citi to develop and launch innovative risk mitigation tools. Citi invested in Exponential’s most recent seed round, which was led by MaC Venture Capital, and included support from Autotech Ventures and Avanta Ventures, bringing the total amount raised to over $10 million. Citi made the investment through its Markets Strategic Investments unit. The investment and partnership underscores Citi’s commitment to furthering the development of innovative risk mitigation tools. Exponential Markets is developing a series of next-generation tradable financial instruments designed to offer new levels of hedging capabilities and risk management for participants in a variety of asset classes. The company’s first product, the Exponential Used Vehicle Index, is a first-of-its-kind tradable index for the automotive sector that allows rental car companies, auto insurers, and auto lessors to hedge used vehicle price risk. The company’s product roadmap includes cash-settled index derivatives for new and underserved markets, in addition to exploration of smart market applications. In addition to the investment, Citi intends to collaborate with Exponential to cultivate the market for Exponential’s used vehicle derivatives, as well as jointly develop new products that will enable more efficient risk transfer across a variety of asset classes, industries, and market participants.