Former Synapse CEO resurfaces with new humanoid robotics startup aiming for $1B valuation

Sankaet Pathak is back—and this time, he’s building robots. Just months after the fintech firm Synapse collapsed under his leadership, Pathak is now behind a new startup called Foundation Robotics Labs.

The company is reportedly trying to raise $100 million at a $1 billion valuation, according to an exclusive report from The Information. That’s a bold ask, especially for a company founded just last year and still operating in stealth. But this is Silicon Valley, where big bets are nothing new.

Foundation Robotics Targets $1 Billion Valuation

“A humanoid robotics startup founded by the former CEO of bankrupt fintech Synapse is in talks to raise money at a $1 billion valuation,” The Information reported.

A New Bet on Automation

Founded in April 2024, Foundation Robotics Labs was launched by Pathak alongside Tribe Capital’s Arjun Sethi and former Cobalt Robotics exec Mike LeBlanc. The goal? Build humanoid robots that can handle complex tasks in real-world settings—factories, warehouses, and maybe even homes. Pathak told TechCrunch the mission is to address labor shortages with robots that can actually get work done.

The tech they’re touting goes beyond what’s used in self-driving cars, with claimed breakthroughs in object detection, depth perception, and pose estimation for unfamiliar objects. If true, this would give Foundation a leg up in the crowded automation race.

So far, the company has reportedly raised $11 million in pre-seed capital, backed by Tribe Capital and other early investors. Now it’s aiming for a much larger round, with interest reportedly coming from a Saudi royal family-affiliated fund.

But Wait—That Name Sounds Familiar

Pathak’s name is still fresh in fintech circles—and not in a good way. He was the founder and CEO of Synapse, the banking-as-a-service startup that imploded in 2024. At its peak, Synapse helped other fintech companies provide banking services by sitting between them and partner banks like Evolve Bank & Trust. Despite raising over $50 million from investors, including Andreessen Horowitz, Synapse filed for bankruptcy in April, leaving around $85 million in customer funds unaccounted for.

Court filings revealed that Synapse’s customer and partner funds were all mixed together, which made tracking and recovering the money a nightmare. Pathak admitted in court that Synapse had blended operational and customer funds. Recovery efforts are ongoing, but many customers remain locked out of their accounts.

The backlash has been intense. Critics are baffled that Pathak could raise money for a new venture while Synapse’s former customers and creditors are still in limbo. “It really is incredible that VCs are willing to fund someone who just walked away from the bomb crater he created,” said industry veteran Todd H. Baker. Michele Alt, partner at Klaros Group, pointed out that U.S. bankruptcy law shields founders from personal liability unless there’s proven fraud.

Pathak, for his part, has blamed Evolve Bank & Trust for the financial shortfall. Evolve, however, denies responsibility. The blame game continues.

GM Deal? Not Quite.

Foundation’s fundraising efforts have hit some bumps. In June 2024, CNBC revealed that the startup had circulated a pitch deck claiming General Motors was about to invest, place a $300 million order, and give Foundation access to its factories. GM flat-out denied it. “GM has never invested in Foundation Robotics and has no plans to do so,” the company said. “Any claims to the contrary are fabricated.”

“GM has never invested in Foundation Robotics and has no plans to do so,” spokesman Darryll Harrison said in an emailed statement. “In fact, GM has never had an agreement of any kind with the company. Any claims to the contrary are fabricated.”

Co-founder Mike LeBlanc admitted the slide deck was misleading and said he was “embarrassed” by the mix-up. He added that the Foundation’s value lies in its engineering team, not in fabricated investor interest. But the damage to the company’s credibility was done.

Can Foundation Catch Up?

Foundation is trying to break into a space that’s already buzzing with investor cash. Agility Robotics raised $400 million at a $1.75 billion valuation earlier this year. Figure AI, another player in the space, hit a $39.5 billion valuation after raising $1.5 billion with backing from the likes of OpenAI, Nvidia, and Microsoft.

Big Tech is now all-in on robotics. Companies like Tesla, Meta, and Nvidia are betting that humanoid robots will fill critical labor gaps, especially in manufacturing and logistics. But building robots that can actually do useful things in messy, real-world environments isn’t easy. As TechCrunch’s Brian Heater pointed out, most companies in this space are still far from deploying robots at scale.

Foundation claims to have tech that outperforms self-driving car perception systems. If that holds up under scrutiny, they could have something special. But skepticism is high given the GM blunder and Pathak’s recent history.

Investors Still Interested

Despite the red flags, investors aren’t walking away. Tribe Capital remains involved. A Saudi-linked family office is said to be leading the $100 million round. The pitch is clear: automation is booming, and Foundation could become a major player.

Consulting firm McKinsey predicts that a quarter of all industrial capital spending in the next few years will go into automation. If Foundation can deliver flexible and efficient humanoid robots, it stands to benefit from that shift.

But big promises come with big expectations—and a short leash.