Investment bank JP Morgan is reportedly buying a 10% stake in social messaging service Twitter for an enterprise valuation of about $4bn from its $1.2bn Digital Growth corporate venturing fund.
News providers TechCrunch and Fortune said JP Morgan (JPM) already had a stake in Twitter after committing to Chris Sacca’s, an early Twitter angel investor and adviser, $1bn secondaries fund.
Fortune said: "Most of [Sacca’s] fund’s commitments came from JPM – most likely via its $1.2bn Digital Growth Fund (which didn’t hold a first close until earlier this month). Sacca then bought up around $400m worth of shares, from Twitter co-founder Ev[an] Williams, early Twitter [venture capital firm] investors Spark Capital and Union Square Ventures and some Twitter employees. The purchases were done at various valuations, the highest of which was $4.5bn."