RealTime IT News

LabMorgan Takes Stake in Iron Street Labs

LabMorgan, the e-finance unit of J.P. Morgan, acquired an unspecified equity interest in New York e-business incubator Iron Street Labs through a direct capital investment.

As part of the agreement, Iron Street Labs will refer entrepreneurs with promising ideas in e-finance to LabMorgan, offering the first right to invest and leveraging the unit's focus on the wholesale financial services sector.

Entrepreneurs who submit e-finance ideas to Iron Street Labs will gain access to the incubation experience of LabMorgan and to the financial markets expertise of J.P. Morgan to build on their ideas.

"By investing in Iron Street Labs, we are broadening LabMorgan's outreach to entrepreneurs with innovative ideas," said Jeff Saltz, co-head of incubation at LabMorgan.

A full-service e-business incubator, Iron Street Labs provides a set of resources for entrepreneurs to rapidly launch new Internet companies. Iron Street Labs has a diverse portfolio of companies and said it will use the LabMorgan funding to develop additional Internet businesses.

Since its formation in the first quarter of 2000, LabMorgan has launched or partnered to launch over 20 e-finance ventures, including: MarketAxess, a multi-dealer fixed income distribution platform for institutional investors; Arcordia, an independent Internet-based derivatives management and settlement company, and SynDirect Wireless, J.P. Morgan's bond distribution system that allows investors and issuers to syndicate through Palm hand-held devices or cellular phones.

Iron Street Labs provides office space, network infrastructure, professional services, seed capital, and administrative support in a nurturing environment for launching new businesses. Privately held, the company was founded in early 1999 by a group of investors, including Richard Thompson and Bob Niehaus, to focus on e-business opportunities in the New York metropolitan area.