JPMorgan Backs Software Startup Codat at $825M Valuation
Summary
Codat, a software startup that connects small businesses with financial institutions, raised $100 million in an equity funding round led by JPMorgan Chase & Co.’s growth-equity arm. The transaction values the London-based company at roughly $825 million, Codat co-founder and Chief Executive Officer Pete Lord said in an interview, more than doubling since a Tiger Global-led round last July. “We believe Codat has the potential to fundamentally change the way data is shared across the small-business economy,” J.P. Morgan Growth Equity Partners’ Patrick McGoldrick, who is joining the board, said in an emailed statement. “JPMorgan Chase has an extensive small-business customer base so we understand the power of connecting and standardizing data.” Founded in 2017, Codat has seen its revenue more than double each year since inception, Lord said. The startup can offer data sharing with third parties such as banks, so lenders considering providing financing have real-time visibility into a business’s financial health, he said.