With startups increasingly staying private longer, banks can benefit from expanding their services and bonding with companies early.
JPMorgan just launched a new platform called Capital Connect to strengthen its connections with young, venture-backed companies that could eventually swell into major enterprises.
The platform aims to simplify the fundraising process for startups, allowing them to connect with investors and access benchmarking data, as well as sell company shares on the secondary market. It builds on technology from Global Shares, a software firm that JPMorgan bought earlier this year.
“The recent acquisition of Global Shares further enhances this early-stage offering, allowing JPMorgan to offer cap table management services to companies from inception through to IPO,” a spokesperson told Insights Distilled.
The team is run by JPMorgan’s head of digital investing banking, Michael Elanjian, who told Reuters that the bank aims to be a “one-stop shop” for private companies and will differentiate itself by pairing this new digital platform “with the expertise, data, and relationships of our investment and private bank.”