JPMorgan Chase & Co is launching Capital Connect, a platform that will connect startup founders with venture capital investors in order to simplify the fundraising process.
The new platform focuses on serving the financing needs of startups in their early stages, signalling the largest US bank by assets’ ambition to further expand into the private market and build a founder-friendly brand in Silicon Valley.
The new team is led by Michael Elanjian, JPMorgan’s head of digital investment banking and digital private markets, and has grown from three to 125 people in the last two years.
“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,” Elanjian said in an interview.
Startup founders can use Capital Connect to request introductions to investors, create virtual data rooms, and potentially trade their company shares on the secondary market. They can use the website to raise funds as early as the Series A round.
Capital Connect could be a starting point to digitalize more services, including the investment banking business that generated billions of fees in big-ticket IPOs and M&A deals, Elanjian added.
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