Press Release

JPMorgan, Goldman Sachs, and Citi are Wall Street's

Written by 
August 28, 2019

A version of this article first appeared in Business Insider on September 18, 2020 (link). 


Jamie Dimon, the chief executive of JPMorgan.

Funding in financial technology (fintechs) companies decreased in 2020 amid economic uncertainty caused by the coronavirus pandemic. However, Venture Capitals (VCs) and investment banks alike are still looking for the next big thing in the digital finance ecosystem.

Since 2012, bulge bracket banks Goldman Sachs, Citi, and JPMorgan are the most active investors of fintechs. And in 2020, they’re making bets on segments seeing a boost with the accelerated shift toward digital finance.

Across the board, US banks have invested in 40 fintech deals so far this year, following 66 total deals in 2019, according to CB Insights data.


CB Insights

Both Goldman and Citi have separate investment arms for these deals — GS Growth and Citi Ventures. Meanwhile, JPMorgan has the largest reported tech budget of US banks at $11.4 billion in 2019 and a streamlined process to evaluate fintechs.

While VCs and banks are hoping for high returns on their startup bets, banks also invest when there’s an opportunity for a strategic partnership. JPMorgan, for example, partnered with Trovata.io and Square Inc. to reinvent user experience, exchange of bank data, and automating treasury workflow on a platform to provide the Square Treasury team financial data in real-time utilizing JPMorgan’s Treasury Services APIs.

Much of the banks’ fintech deals fall into the capital markets category, investing in companies focused on digitizing and automating trading. And that’s held true in 2020, with the banks mainly investing in capital markets, wealth and asset management, and small-business focused fintech.

Here’s the list of fintechs that Wall Street’s three biggest investors have put money into this year:

Trovata


Bank: JPMorgan 

2020 investment: Led $4.3 million venture round in April.

What it does: Automated cash reporting and forecasting platform.

Read more: JPMorgan and Wells Fargo are backing a startup that solves cash-flow headaches for small businesses. Here’s how it works.

Capital Markets Gateway

Bank: Citi, Goldman Sachs, JPMorgan

2020 investment: Participated in $25 million Series B in June

What it does: Workflow management and data analytics solutions for the traders.

Capitolis

Bank: Citi, JPMorgan

2020 investment: Participated in September funding round of $11 million. 

What it does: A platform that connects buyers and sellers to speed up trading processes.

Flywire

Bank: Goldman Sachs

2020 investment: Led $120 million Series E in February

What it does: Payments platform for education, healthcare, travel, and tech companies.

HighRadius

Bank: Citi

2020 investment: Participated in a $125 million Series B in January.

What it does: AI-powered account receivables and treasury management software provider.

iCapital Network

Bank: Goldman Sachs

2020 investment: Participated in $146 million fundraise in March.

What it does: A platform for alternative investing.

MEMX

Bank: Citi, Goldman Sachs, JPMorgan 

2020 investment: Participated in undisclosed funding rounds in February and June. 

What it does: Member-owned stock exchange with reduced fees.

Socure

Bank: Citi

2020 investment: Participated in a $35 million funding round in September

What it does: AI-driven identity-verification platform.

Taulia

Bank: JPMorgan 

2020 investment: Participated in $60 million fundraise in July.

What it does: Supply-chain financing platform.

Unqork

Bank: Goldman Sachs

2020 investment: Participated in $131 million Series B in February.

What it does: No-code platform for legacy financial institutions like banks and insurance companies to build software.

Source: businessinsider

JPMorgan, Goldman Sachs, and Citi are Wall Street’s most active fintech investors. Here are 10 startups they’ve poured money into so far this year.