JPMorgan Chase (JPM) Stock: Shuts Down Capital Connect, Stays Bullish on Venture Push

TLDR

JPM closed at $252.51 on May 2, up 2.28% Bank shuts down Capital Connect VC platform quietly in late 2024 JPM shifts startup support to existing banking relationships Plans new business using Capital Connect infrastructure JPM stock up 6.54% YTD and 34.80% over 1 year

JPMorgan Chase & Co. (NYSE: JPM) stock rose 2.28% to close at $252.51 on May 2, even as the banking giant quietly shut down its Capital Connect platform. Launched in late 2022, Capital Connect aimed to link entrepreneurs with venture capital firms, but never gained strong traction in a competitive market.

JPMorgan Chase (JPM) 

Capital Connect Closure Signals Strategic Shift

After more than two years, JPMorgan decided to discontinue Capital Connect late in 2024, pulling its website shortly after. While the bank declined public comment, sources familiar with the matter said JPM remains committed to the venture and startup ecosystem — but will now leverage its existing banker relationships rather than a separate digital platform.

Clients in the midst of fundraising are still being served, but Capital Connect’s infrastructure is being repurposed for another business JPM plans to unveil in the coming months. Most of the platform’s 200 employees have already been reassigned within the firm, including to JPM’s global banking unit that develops digital products.

The bank had earlier acquired Global Shares and data analytics firm Aumni to bolster Capital Connect, but the platform reportedly failed to deliver unique value across the crowded VC landscape.

JPMorgan Deepens Venture Banking Efforts

Despite this setback, JPMorgan is expanding its venture footprint through traditional banking channels. The bank’s innovation economy division now has over 500 bankers serving nearly 10,000 clients, including startups and venture-backed firms.

JPMorgan also gained market share by acquiring First Republic Bank and winning over clients from the collapsed Silicon Valley Bank (SVB). High-profile hires like former SVB executive John China and the recent promotion of Andrew Kresse to co-lead the innovation economy unit underscore JPM’s continued commitment to this space.

Venture funding remains subdued globally, with $113 billion raised in Q1 — a figure heavily boosted by OpenAI’s $40 billion round. Stripping that out, venture fundraising would have been flat year-over-year, signaling continued headwinds for the startup ecosystem.

JPM Stock Outpaces Broader Market

While Capital Connect didn’t deliver as expected, JPM stock remains a strong performer. Shares are up 6.54% year-to-date and have surged 34.80% over the past year, far outpacing the S&P 500’s 12.29% gain in the same period. Over three years, JPM has returned 127.55%, more than tripling the S&P 500’s 36.85%.

Looking ahead, JPMorgan’s next earnings report is due July 15, 2025, and analysts have set a one-year target estimate of $258.20. The bank also offers a forward dividend yield of 2.22%, making it attractive to income-focused investors amid its ongoing expansion in the innovation economy.

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