JPMORGAN Chase Axes Startup-VC Platform Capital Connect but is still committed to the innovation economy

Jpmorgan chase He has closed his capital collection platform Connect more than two years after launching the unit, they said four people who are known with the situation. The bank chose to suspend the service by the end of 2024 and quietly removed the TAP in the Capital Connect Website Shortly afterwards.

Jpmorgan launched Capital Connect at the end of 2022 as a platform to help entrepreneurs connect with venture capital companies. For JpMorgan, Capital Connect was a way to deepen his relationship with VC investors, similar to how the now defined Silicon Valley Bank (SVB) had deep links with the risk community.

“Capital Connect did not work as planned, but the bank’s links with venture capital and its plans to deepen the innovation economy remains,” said one of the people who refused to talk about the record.

JPMORGAN Chase still promises to help emerging companies raise money, but has chosen to do so through existing banking relations instead of the Capital Connect platform, said the person. As he said, any client who enrolled in Capital Connect, or who was in the middle of a fundraising.

A spokesman for JpMorgan refused to comment.

Capital Connect launch came shortly after JPM acquired Global Actions of Ireland, which provide software to handle employee’s actions plans. A year later, the bank Has been obtained Aumni data analysis provider. Global shares were integrated into Capital Connect, while it is unclear if Aumni was, but the units “talked to each other,” the first person said.

“Capital Connect had competition (i) did not reach a state where he had a personalized value to offer all the ends of the market,” said an entrepreneur.

JpMorgan Chase now uses the Capital Capital Infrastructure and Infrastructure Connect for another business, which he plans to announce in the coming months, said the person. World actions have been received and is now known as JP Morgan Workplace Solutions. JPM has also reorganized most of the 200 people who worked in Capital Connect to other parts of the company, including the Global Banking Bank of JP Morgan, which builds digital products and services.

Although Capital Connect did not work, the risk capital and the beginning ecosystem are still a key growth area for JpMorgan. The bank has more than 500 bankers in its innovation economy business that supports the needs of about 10,000 customers, including risk -supported companies and investors.

JPMORGAN Chase efforts to create your risk footprint also include the acquisition of First Republic, who, along with SVB, cupid to the VC and startup community. JPM also has it collected Many SVB customers. John China, former head of SVB technology banking, accompanied JPMORgan in July 2023, where he is the Cohead of Innovation Economy, Banking Commercial. At the end of April, JpMorgan promoted Andrew Kresse to co-lead the innovation economy business, happening in Melissa Smith that was promotedTogether with Matt Sable, earlier this year to monitor the entire commercial bank.

The disappearance of Capital Connect comes as the risk financing remains slow this year. The collection of Venture Global Venture funds in the first quarter was reduced to $ 113 million, the strongest period from the second quarter of 2022, according to data from Crunchy. But much, or more than a third, of $ 113 billion came from $ 40 million in the AI raise Last month. Without Openai, Global Venture Investments would have been flat year after year and down during the quarter, said Crunchbase.

This story originally presented to Fortune.com

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