JPMorgan Chase has deployed $5 billion a year after launching a startup investment programme aimed at strengthening U.S. security and industrial supply chains. It achieved half of its original plan to invest $10 billion over 10 years in the first year. The company also left open the possibility of expanding the investment amount if needed.

On Oct. 19 local time, CNBC reported that JPMorgan Chase deployed more than $5 billion in investments in its first year through a U.S. security and resilience investment programme targeting new companies tied to defence, advanced manufacturing and key supply chains. That is far faster than its original plan to invest $10 billion over 10 years.

JPMorgan Chase co-president Doug Petno (더그 페트노) suggested the total investment could exceed the existing goal. It is also expanding its targets beyond defence, manufacturing and supply chains to areas such as advanced technology, pharmaceuticals and health tech.

The programme is unusual in that a large bank known for lending and financial advisory services is making direct equity investments in early-stage startups. JPMorgan Chase had stepped back from startup equity investing after spinning off its private equity business One Equity Partners more than 10 years ago. This time it is putting capital into early companies whose technology and business viability have not yet been fully proven, moving to foster strategic industries.

The push to expand investment comes amid anxiety over the U.S. industrial base and defence supply chains. Wars in Ukraine and the Middle East, and trade conflicts with China, have made stable supplies of energy and key components a major task. JPMorgan Chase CEO Jamie Dimon (제이미 다이먼) began planning investments last year to respond to these issues.

Petno, who has been mentioned as a candidate to become the next CEO, is overseeing the programme overall, while Todd Combs (토드 콤스) is leading startup investments. Petno explained that early-stage advanced manufacturing companies are looking for ways to build the production capacity they need in the United States without relying on overseas suppliers.

Disclosed investment cases also show a focus on strengthening defence and manufacturing capabilities. JPMorgan Chase joined the arrangement of a $1.4 billion funding round for Hadrian, an automated factory company that produces parts for defence, aerospace and maritime sectors, in August. Hadrian’s founder said it operates 10 robots per employee at a California factory.

In the same month, it also joined a $1 billion funding round for Castelion, which is promoting a relatively low-cost hypersonic missile called Blackbeard as its flagship product. Castelion was founded in late 2022 by former SpaceX engineers.

JPMorgan Chase is placing more weight on building long-term partnerships with promising companies than on short-term investment returns. Combs said the investment strategy is to find companies that represent a generation and become long-term partners. He said deploying more than $5 billion in the first year shows that companies with strong growth potential are emerging in industries that strengthen key supply chains.

Beyond direct startup investments, it is also expanding traditional financial support. JPMorgan Chase said it has provided more than $230 billion in support to industries related to U.S. national interests through existing financial services such as loans. The division aims to provide $1.5 trillion in support over 10 years, and is overseen by Jay Hurin (제이 호린).

The organisation running the programme has also expanded. JPMorgan Chase formed a dedicated team of about 36 bankers, with hundreds more employees inside the firm supporting related work. The scope has expanded beyond the United States to Europe and Canada.

Bank staff are tracking supply chains for key products such as submarines, missiles and aircraft to find suppliers that lack funding or production capacity to respond to rising demand. They are also in regular contact with government departments such as the U.S. Department of Defense and the Department of Commerce to review government demand and supply-chain bottlenecks.

JPMorgan Chase’s move aligns with a broader trend of expanding the role of private capital in strategic industries. As supply-chain stability and production capacity become more important in defence and advanced manufacturing, large financial institutions are combining direct investment and lending to strengthen the U.S. industrial base.