JPMorgan project will push bank further into market serving private

JPMorgan Chase is preparing to go all-in on private companies.

For the past year, the bank has been quietly hiring programmers and creating products for a new fintech business that aims to provide an array of services to start-ups and investors around the world, according to people with knowledge of the matter.

The business, known internally by the code name “Project Bloom” because of its goal of helping early-stage private firms grow, is run by Michael Elanjian, head of digital private markets, said the people, who declined to be identified speaking before its launch.

JPMorgan, the biggest U.S. bank by assets, raised eyebrows last month when it said that expenses would surge this year, in part because of an annual technology budget that has grown to at least $12 billion. CEO Jamie Dimon is aggressively investing to help his bank battle fintech firms, and executives see an opportunity to create a private-markets winner before start-ups can dominate the space.

A key part of Project Bloom is a digital network for JPMorgan clients that will match start-ups with investors, helping them in fundraising rounds, said the people. Other planned-for services include helping companies sell shares in tender offers or providing loans on private stakes, offering a digital interface for secondary trading of private company stock, and helping venture capital firms raise new funds.

While elements of these offerings exist across parts of JPMorgan’s sprawling operations, the new effort aims to create a one-stop digital portal for start-ups and venture capital firms, family offices and other institutional investors, said the people.

The business aims to tie in offerings from the firm’s corporate and investment bank, commercial bank and private bank. For instance, the private markets trading desk first reported by CNBC in 2020 will feed into the new platform, according to the sources.

By creating a self-service platform, JPMorgan can target smaller, earlier-stage companies than its bankers traditionally engage with, helping them raise funds and offering automated recommendations, the people said.

JPMorgan’s move comes as the number of private companies being created continues to explode. Investors are funneling billions of dollars into the asset class in the hopes of catching companies before they mature and their growth prospects level off, and start-ups are staying private for far longer because of the near-limitless access to capital.

Since the start of the pandemic in 2020, the number of unicorns, or private companies valued at $1 billion or more, has more than doubled to 1,032, collectively valued at $3.4 trillion, according to data provider CB Insights.

That has lifted the fortunes of start-ups like Carta, Brex and Forge that cater to private companies in one way or another. Banks have…