JPMorgan introduces a fundraising portal to entice startups
- ByStartupStory | October 21, 2022
According to Reuters, JPMorgan Chase & Co. (JPM.N) is establishing a platform to link company founders with venture capital investors and streamline the fundraising process.
The new platform, Capital Connect, demonstrates the aim of the largest U.S. bank by assets to further grow into the private sector and develop a founder-friendly brand in Silicon Valley by focusing on meeting the funding needs of companies from their early stages.
The new team, which has grown from three to 125 individuals over the past two years, is led by Michael Elanjian, head of JPMorgan’s digital investment banking and private markets.
Startup CEOs can create virtual data rooms on Capital Connect, request introductions to investors, and possibly exchange their firm shares on a secondary market. As early as the Series A round, they can use the website to solicit money.
“The expansion of private capital has been a secular trend over the past ten years, and the private market is here to stay. We want to serve investors and enterprises of all sizes as the one-stop shop for everything private “In an interview, Elanjian added.
The necessity to meet the fundraising requirements of founders and investors has driven banks to establish connections early as the scale of venture capital-backed companies has grown over the past few years.
Banks with a focus on VC-backed firms, like Goldman Sachs (GS.N), Silicon Valley Bank, and Carta, have expanded their services into the private sector.According to Elanjian, the platform will benefit from JPMorgan’s expertise as a full-service bank.
By developing a scalable digital platform and combining it with the knowledge, information, and connections of our investment and private bank, we think we can stand out in the venture market, according to Elanjian.
According to Elanjian, Capital Connect might serve as a springboard for the digitalization of more businesses, including investment banking, which generated billions in fees from high-profile IPOs and M&A transactions.
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