Capital Connect – New Platform To Connect Startups With Venture Capital

Capital Connect is a tool introduced by JPMorgan Chase & Co with the goal of connecting startups with venture capital investors to streamline the fundraising process.

The new platform, which signifies the goal of the largest US bank by assets to further grow into the private sector and develop a founder-friendly brand in Silicon Valley, focuses on addressing 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, the head of digital investment banking and digital private markets at JPMorgan.

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.

“Over the past ten years, the expansion of private capital has been a secular trend, and the private market is here to stay. For servicing businesses and investors of all sizes, we aim to be their one-stop shop for everything private “In a conversation, 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, and Silicon Valley Bank, and fintech players like Carta, have expanded their services into the private sector.

According to Elanjian talk in an interview, “we think we can stand out in the venture market by building a scalable digital platform and combining it with the knowledge, information, and connections of our investment and private bank”.

Elanjian said, 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.