JPMorgan Chase (NYSE: JPM) has quietly shut down Capital Connectionits entrepreneurial venture capital pairing platform was launched only two years ago. According to Fortune, the site had no official announcements from banks at the end of 2024, and sources familiar with the decision said the platform could not meet expectations.
Capital Connect was introduced in 2022 to deepen JPMorgan's presence in the venture capital sector. Fortune reports that the platform aims to simplify fundraising activities for startup founders and strengthen ties with VC companies, is seen as JPMorgan’s answer to the positions Silicon Valley Bank once had a superior position in the startup ecosystem.
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Capital Connect promises seamless fundraising tools, simplified investor docking and integration with JPMorgan’s wider banking services. The launch, in October 2022, just two months after the bank acquired global stock, is a software that provides management of employee stock plans and confirmed in a statement from DLA Piper in May 2023 that it has closed the acquisition of data analytics company Aumni.
According to Fortune, four sources familiar with the matter confirmed that capital connections simply cannot meet expectations. One of the sources told Fortune that Fortune links “have not really reached its customized value to provide all purposes in the market.”
Despite the ambitious vision of the platform, Capital Connect is still striving to gain meaningful appeal in the market. Although JPMorgan has not officially disclosed the reasons behind its quiet closure, the decision suggests that the plan may not meet the strategic implications originally envisioned. According to Crowdfund Insider, the bank has not continued to pour resources into its standalone product, but has shifted its focus to deepening its relationship with the venture capital ecosystem through its existing, more mature banking channels.
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At the same time, global venture capital has entered a cooling stage. Crunchbase said global venture capital funding reached $113 billion in the first quarter of this year, but more than $40 billion of that comes from Fortune, according to OpenaiImprove alone.
