Leading investment bank JP Morgan is launching a new platform to help pair startups with funds from venture capital.
- JPMorgan Chase & Co., the largest bank and investment firm in the U.S., revealed that it is launching Capital Connect, a new financial-needs platform designed to fundraise for startups, Reuters reports.
- The 125-person team will be led by the company’s head of Digital Investment Banking and Digital Private Markets Michael Elanjian.
- The company hopes to use its capabilities as a “full-service bank” to jump into the growing venture capital markets, taking advantage of its connections, digital technologies, and capabilities to help burgeoning companies find new opportunities.
Why it’s News
The move represents an attempt to digitize the IPO market further, creating more opportunities through technology for startups to get more attention and funding, build relationships, build brands, and take advantage of JP Morgan Chase’s considerable assets and connections.
If successful, it would allow the company to expand further into private startup markets. The company is hoping to take advantage of the expansion of venture capital in recent years.
“On Capital Connect, startup founders can ask for introductions to investors, build virtual data rooms and potentially trade their company shares on a secondary market. They can use the website to fundraise as early in the process as the Series A round,” says Reuters.
“We’ve seen a secular trend over the last decade is in the growth in private capital, and the private market is here to stay. We want to be the one-stop shop for all things private for servicing companies and investors of all sizes … We believe we can differentiate ourselves in the venture market by building a scalable digital platform, paired with the expertise, data, and relationships of our investment and private bank,” says Elanjian.