JPMorgan employs dozens of bankers around the world to provide services for them .start Venture capital-backed companiesin order to take advantage of Silicon Valley Bank (SVB) bankruptcy.
The largest bank in the United States has He has recruited around 20 UK bankers into a commercial banking team working with startups, in addition to the ten recently listed in Israel. He’s also hired John China, former CEO of SVB, as Co-Chair of US Innovation Economicsand plans to expand this business to other offices in Asia.
“It is very rare for a monopoly to disappear overnight. We want to seize the opportunity and believe we can be the ultimate winners.” said Doug Pitnow, general manager of commercial banking at JPMorgan, in an interview.
New UK additions include former SVB executives such as Rosh Wijayaratna, who has been appointed Managing Director and Head of Innovation Economics UK & Ireland, and Pholek Chasanya, who will be Managing Director of Venture Capital Coordination in the region.
SVB was the reference financial entity for .start and venture capital investors, for which it provided accounts, credits, and other services. but, SVB and its British subsidiary had to be rescued in mid-March After the massive capital outflow caused by investor concerns about its balance sheet.
In the US, the SVB was intervened by the authorities. then First Citizen Bank bought your loans and deposits. HSBC acquired SVB UK for £1 in a bailout deal and renamed HSBC Innovation Banking.
SVB’s bankruptcy awarded JPMorgan a An instant boost in new attraction .start and venture capital clients.
In the UK, several former clients of SVB UK told FT that they had He studied the possibility of opening new accounts to diversify risks after near bankruptcy, but he did not find suitable alternatives.
Some said their requests to open accounts with non-public banks were rejected because they were unwilling to accept venture-backed firms, while the process took months and was uncertain with traditional banks due to long-term “customer” checks.
said Ian Stewart, chief executive of HSBC UK FT In June there was some “risk on” from clients wanting to spread their deposits across multiple accounts around the time of the crash.
despite of JPMorgan has been expanding its Offshore Commercial Banking Division since 2019 To provide coverage to medium-sized companies on an international scale, It did not formalize the structure of the innovation economics unit for EMEA until this year. The number of clients has increased since the bankruptcy of SVB.
According to Betno, Bank wants to provide basic financial services to .start To develop a long term relationship with them: “We want to be a good fit for the best companies in the world at an early stage of their life cycle”
JPMorgan’s Commercial Banking division, to which the Innovation Economics teams belong, serves clients in approximately 25 countries outside the United States and has approximately 175 customer-facing employees. This includes 17 countries in the Europe, Middle East and Africa region.
The unit generated $847 million in international revenue last year, according to an investor presentation.
It is also present in Asian countries, such as Japan and China, where the bank’s CEO, Jamie Dimon, traveled two months ago to speak at the JPMorgan conference in Shanghai.
Bitno insists The bank remains committed to serving startups in China, despite the fact that Sino-US relations remain tense. He plans to recruit a banker for the innovation economics team in Shanghai in the coming months.
© The Financial Times Limited . All rights reserved. FT and Financial Times are registered trademarks of Financial Times Limited. Redistribution, copying or modification is prohibited. EXPANSIÓN is solely responsible for this translation and Financial Times Limited is not responsible for its accuracy.
“Future teen idol. Hardcore twitter trailblazer. Infuriatingly humble travel evangelist.”