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JPMorgan's Digital Growth Fund Plans to Invest in Tech Companies Like Twitter, Group Deal Sites

submitted on February 28, 2011 by HouTex in "Member's Lounge"
The new JPMorgan Digital Growth Fund is in talks with Twitter and hopes to acquire 10% of the online messaging service for $450M, or one third of the fund.
JPMorgan’s Digital Growth Fund was established this month to give rich clients exposure to fast-growing private tech companies, and follows a similar effort by Goldman Sachs to invest in Facebook.

The fund has raised $1.22B to date, according to a filing with the Securities and Exchange Commission. But it plans to raise $1.3B in total, and will have a maximum of 480 investors, say the people. JPMorgan expects to earn commission of at least $13m from the fund.

They're considering investing another third of the fund in games maker Zynga or telephony provider Skype.
The final third of the fund will be allocated among six other companies, they said – possibly to include coupons site LivingSocial, or Gilt, the flash-sales site.

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    Posted by orangearrows on February 28, 2011 [reply] 0 0
    Interesting read - thanks .
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    Posted by clover on March 1, 2011 [reply] 0 0
    The Twitter stake is interesting! I don't know of anyone in my loop that uses "Twitter" anymore. Facebook! I am curious about the investment in "Skype." I hooked my Parents up with "Skype" but have had some problems. Has anyone used Google Video "Chat?"
    • HouTex
      Posted by HouTex on March 1, 2011 [reply] 0 0
      In the first years after Skype was introduced, we used it for hours at a time with great success. After eBay bought them and/or a lot more people signed up for free service, we had more problems and briefly tried Google Video Chat. That was in the early days of GVC, we didn't like it then and went back to Skype. I'm not sure how many commercial accounts ever signed up with Skype as they has hoped would happen. Since then others have told me they use GVC without problems.

      I'm curious to see how the fund's choice of investments will produce the expected profit. Since their purpose is to make money for their investors, I hope they'll get more than just a tax write-off (for a loss). Amused

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