J.P. Morgan Backs Zanbato

February 22, 2021

Financial technology company Zanbato has secured a strategic investment from global financial services leader, J.P. Morgan. The investment marks the first step in further aligning Zanbato's ZX platform with its membership through equity participation.

Zanbato was co-founded by Joe Lonsdale, who also co-founded Palantir.

"We're pleased that J.P. Morgan shares our commitment to creating deeper and more reliable private markets," said Nico Sand, Zanbato Chief Executive. "We look forward to continuing to build out ZX, further enabling our members to more effectively serve their clients."

“Our strategic investment in Zanbato complements our commitment to support clients across the private market ecosystem, as we look to leverage tech-enabled platforms to source liquidity and increase execution speed,” said Andrew Tuthill, Global Head of Equities Private Markets, J.P. Morgan.

J.P. Morgan's commitment to private stock trading comes as top funds and institutional investors increasingly turn to secondary markets to actively manage their private company exposure. Based on Pitchbook data, in 2020 the combined value venture-backed private companies exceeded $2 trillion, having grown at more than 40% compound annual growth rate over the prior decade.