JPMorgan Pursues Silicon Valley Startups and VC Backers

JPMorgan Chase & Co., the largest bank in the United States, is reportedly aggressively positioning itself as the leading financial partner for tech companies in Silicon Valley.

After the collapse of Silicon Valley Bank (SVB), JPMorgan sees an opportunity to fill the void and attract the region’s up-and-coming companies as clients, Bloomberg reported Wednesday (Oct. 11). Led by CEO Jamie Dimon, the bank has launched an ambitious campaign to become the go-to financial partner for startups, founders and venture-capital backers.

Recognizing the importance of catering to the tech industry, JPMorgan aims to provide services at every stage of a company’s growth, hoping to manage stock offerings and handle the wealth of newly minted billionaires, according to the report. Since SVB’s collapse, JPMorgan has seen a surge in deposits from former SVB clients who were drawn to the bank’s perceived stability.

To support its goal of keeping and growing this client base, JPMorgan has made strategic hires and investments, including the acquisition of SVB’s smaller rival, First Republic Bank, the report said. The bank has also doubled the number of commercial bankers focused on the tech sector and brought on board some of SVB’s top rainmakers.

To establish a strong presence in Silicon Valley, JPMorgan has been hosting events in key cities such as San Francisco, Los Angeles, Boston, Austin, New York and Miami, per the report. These events serve as networking opportunities and platforms for panel discussions, allowing the bank to build relationships with potential clients. However, JPMorgan faces fierce competition from other banks and private equity firms also vying for a share of the tech industry.

What sets JPMorgan apart is its existing ecosystem of services, which includes a simplified treasury-management platform tailored to startups, dealmaking capabilities and wealth-management advice, according to the report. The bank’s pitch is that its platform can provide stability, strong governance and controls.

With a long history in Silicon Valley and strategic acquisitions and investments over the years, JPMorgan has established a strong position in the tech industry, the report said. Backed by its $3.87 trillion balance sheet and the influence of Dimon, the bank has the resources and reputation to attract tech companies and their founders.

Speaking at a conference on Oct. 2, Dimon said the bank is courting potential customers to expand its startup and venture capital customer base by reaching out to them in the ways they prefer.

“We have unbelievable products and services to bring to them,” Dimon said. “But we have to deliver it to them in a way they actually like it and they want it.”