Breaking News: Former Synapse CEO Launches $11 Million Robotics Startup Despite Missing Millions in Customer Funds
Sankaet Pathak, the former CEO of fintech Synapse, is now making headlines with his new venture, Foundation, a robotics startup aiming to create advanced humanoid robots to address labor shortages. Despite the controversy surrounding unaccounted customer funds at Synapse, Pathak remains undeterred as Foundation secures $11 million in pre-seed funding from Tribe Capital and other investors.
Tribe Capital's co-founder, Arjun Sethi, is also a co-founder of Foundation, adding another layer of intrigue to this unfolding story. Earlier reports indicated that Foundation had already secured $10 million in capital commitments from Tribe Capital, showcasing the strong backing behind Pathak's new endeavor.
Synapse, Pathak's previous startup, faced financial troubles in 2023, leading to layoffs and a Chapter 11 filing in April. As of July, millions of customers were unable to access nearly $160 million in deposits, raising concerns about the missing funds. Pathak has publicly accused Synapse's former partner, Evolve Bank, of creating the deficit and failing to pay out customers. However, Evolve has denied these claims, creating a back-and-forth between the two parties.
Despite the controversy surrounding Synapse, Pathak is pushing forward with Foundation's ambitious goals to automate GDP through AI and Robotics, aiming to free people from labor jobs and allow them to pursue their passions. With plans to deploy a walking humanoid robot by year-end, Foundation is aiming to revolutionize the robotics industry with cutting-edge technology.
In conclusion, the launch of Foundation and the controversy surrounding Synapse highlight the risks and rewards of investing in startups. While Pathak's new venture shows promise, potential investors should proceed with caution and conduct thorough research before committing funds. Stay tuned for more updates on this developing story.