JPMorgan Is Acquiring Value-Based Investment Startup OpenInvest

American banking giant, JPMorgan is strengthening its position with the new-age investors as it has agreed to acquire San Francisco-based OpenInvest, a Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c Read this Term that allows customization and reporting on value-based investments.

OpenInvest was founded in 2015 by Conor Murray, Joshua Levin and Phillip Wei. The aim of the startup is to put investors’ values in focus while making any investment decision.

ESG Investment Boom

The demand for such value-based investment services boomed with the recent traction of ESG funds, and OpenInvest helps in creating highly customized and value-based portfolios. The startup fetches data from more than 35 sources to feed its decision engine.

“Clients are increasingly focused on understanding the environmental, social and governance (ESG) impact of their portfolios and using that information to make investment decisions that better align with their goals,” said Mary Callahan Erdoes, CEO at JPMorgan Asset and Wealth Management.

Additionally, OpenInvest managed to get the attention of big Silicon Valley investors and is backed by Andreessen Horowitz, Y Combinator, QED and several others. The startup managed to raise almost $25 million in funding to date, but its valuation is not known.

Neither JPMorgan nor OpenInvest has disclosed the financials of the acquisition deal.

“At OpenInvest, we believe that aligning capital with social and environmental values is a critical driver of widespread change,” OpenInvest’s Co-Founder and CEO, Murray, said.

OpenInvest is the third purchase of JPMorgan since December. The Wall Street giant previously bought 55ip, a platform that automates the construction of tax-efficient portfolios, and UK-based robo-advisor Nutmeg.

The latest press release detailed that the bank will retain the OpenInvest brand and will integrate the service with the offerings to private banking and wealth management clients.

“OpenInvest will be a powerful resource for our advisors to use in helping clients personalize their investments,” said Michael Camacho, CEO at JPMorgan Wealth Management Solutions.