JPMorgan Chase axes startup-VC platform Capital Connect, but remains committed to innovation economy
JPMorgan Chase has closed the fundraising platform that connects more than two years after the unit launches, four people are familiar with the situation. The bank chose to stop the service late in 2024, and silently pulled the plug to the Capital Connect Website Not long.
JPMorgan launched Capital connected in late 2022 as a platform to help entrepreneurs connect venture capital firms. For JPMorgan, Capital Connect is a way to deepen its relevance to VC investors, similar to how the Silicon Valley Bank (SVB) has a deep relationship with the adventure community.
“Capital Connect does not operate as planned, but the bank's relationship with capital adventure and its plans that still dive into the economic change will remain,” one of the people, who refused to speak on the record, said.
The JPMorgan Chase is still focusing on helping emerging companies earn money but have been chosen to do that through existing banking relationships rather than the capital connect platform, the person said. Any client who signed up to the capital connect, or in the middle of a fund, is still served, they said.
A JPMorgan speaker refused to comment.
Launching Capital Connect arrives shortly after JPM obtained The global shares, of Ireland, which provide software to manage employee stock plans. One year later, the bank scooped up Data Analytics Provider Aumni. Global shares are integrated into the capital connect, while it is unclear whether Aumni is, but the units “spoke to each other,” the first person said.
“Capital Connect has a competition, [and] It didn't really get to a state where it had the value of bespoke to offer all the ends of the market, ”said one businessman.
JPMorgan Chase is now using the capital connect and infrastructure platform for another business, which it plans to announce in the coming months, the person said. Global shares have been that -rebranded and now known as Jp morgan workplace solutions. The JPM is re -reviewing most of 200 people who have worked on capital connect to other components of the company, including the JP Morgan's Global Banking Business, which builds digital products and services.
Although the capital connect does not work, the venture capital and the startup ecosystem remain a major growth area for JPMorgan. The bank has more than 500 banks in the economic business innovation that supports the needs of nearly 10,000 clients, including companies supported by venture and investors.
JPMorgan Chase's efforts to develop its venture trace also include the Getting of The first republic, which, along with the SVB, was organized in the VC and startup community. JPM is also there taken Many of SVB customers. John China, the former head of technology banking on SVB, Join JPMorgan in July 2023, where he was cheap by the economic change, commercial banking. In late April, JPMorgan promoted Andrew Kresse to co-lead the innovative economic business, which succeeded Melissa Smith who that promotesWith Matt Sable, earlier this year to handle all commercial banking.
The death of the capital connect arrived as the venture funding remained slow this year. The first-quarter global venture fundraising has clocked at $ 113 billion, the strongest period since the second Quarter 2022, according to data from Crunchbase. But many, or over one-third, of $ 113 billion came from the $ 40 billion AI increase last month. Without Openai, global adventure investments would be a flat year in the year and down the quarter in the quarter, Crunchbase said.
This story was originally featured on Fortune.com
