On 9th October JP Morgan announced that it is launching a platform ‘Capital Connect’ to simplify fundraising to establish a network connecting startup founders with investors. ‘Capital Connect’ will assist startups financially from their early stages. This is JP part of JP Morgans’s plan to expand in the private sector. A fresh team has been put in place with an expansion from 3 to over 125 people in the last 2 years and is being led by Michael Elanjian head of Digital Investment Banking and Digital Private Markets at JP Morgan. Banks such as Goldman Sachs (GS.N) and Silicon Valley from the banking sector and Carta from the FinTech sector are also expanding their services in the private sector.
Capital Connect allows startups to request introductions of investors, trade their company shares, and build virtual room data. During an interview, Michael Elanjian said, “we have seen a secular trend over the last decade 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,” said Elanjian.
