News · October 19, 2026, 17:30 UTC · Verified against the sources listed below.
JPMorgan Chase said on Monday, October 19, 2026, that it had invested $5 billion in startups during the first year of its U.S. security and resiliency initiative. The New York-based bank, the largest in the U.S. by assets, is now halfway toward the $10 billion direct-investment target it set when it announced the program.
The initiative, launched a year ago, is a ten-year, $1.5 trillion plan to finance, facilitate and invest in industries deemed critical to national and economic security. JPMorgan said it had separately financed and facilitated more than $230 billion in transactions during the initiative’s first year.
What happened
JPMorgan disclosed the $5 billion figure on Monday, according to CNBC, which first reported the number alongside Reuters. The pace was faster than the bank expected, and co-President Doug Petno told CNBC that JPMorgan may expand the program beyond its initial dollar amount.
Most of the startup stakes have not been disclosed. Two known investments are Hadrian, which builds automated factories for aerospace and defense firms, and Castelion, which is developing a low-cost hypersonic missile called Blackbeard. In August, JPMorgan helped lead a $1.4 billion funding round for Hadrian and took part in a $1 billion round for Castelion, according to CNBC. Castelion was founded in late 2022 by former SpaceX engineers, and Hadrian’s founder said a California factory it operates has 10 robots for every human employee.
Todd Combs, a former Berkshire Hathaway executive and former JPMorgan board member, leads the group making the startup investments and reports directly to CEO Jamie Dimon. “Our approach is to find generational companies and partner with them for the long term,” Combs said in a statement on Monday, according to CNBC. Petno said Combs had “hit the ground running.”
The program’s scope extends beyond defense and manufacturing to frontier technologies, pharmaceuticals and health technology. Jay Horine, who leads the initiative, said the next phase would focus on expanding industrial capacity and strengthening supply chains, according to Yahoo Finance.
Analysis: Why it matters for investors
JPMorgan’s move marks a departure from its traditional role as a lender and adviser, for the bank had previously moved away from taking startup stakes. It spun off its private equity business, One Equity Partners, more than a decade ago, according to KuCoin. Direct equity in early-stage companies carries higher risk than lending, and returns may take years to materialize.
The strategy also reflects a broader shift among large banks toward domestic manufacturing and security-linked sectors. Bank of America said in August it plans to invest $250 billion by July 2027 in U.S. digital and infrastructure projects, and Morgan Stanley said it would help facilitate about $1.5 trillion of investment over the next decade, Yahoo Finance reported. If demand for domestic capacity continues, banks that build expertise in these sectors could capture advisory and financing fees alongside investment gains, though that outcome is not assured.
On JPMorgan’s third-quarter earnings call, Dimon said the bank sees organic growth as the best use of capital and that buybacks were lower this quarter as a result. The bank reported about $30 billion of excess capital, according to Yahoo Finance. Revenue rose 8% to $50.9 billion in the quarter, and return on tangible common equity was 20%, above the bank’s 17% through-the-cycle goal.
Who is affected
Defense-technology and advanced-manufacturing startups stand to gain access to capital and credibility from a major bank’s balance sheet. Hadrian and Castelion are the two named beneficiaries so far, and JPMorgan said most other stakes remain undisclosed. Suppliers in aerospace, maritime, battery storage and critical minerals could also see more financing activity as the initiative expands.
JPMorgan shareholders are exposed to the risk and potential return of these equity stakes. Rival banks pursuing similar programs, including Bank of America and Morgan Stanley, face competitive pressure to build comparable capabilities. The program is overseen by Petno, widely seen as one of two possible successors to Dimon, which gives the initiative added significance inside the bank.
What is still uncertain
The sources do not say which companies received the bulk of the undisclosed investments or what terms those stakes carry. It is also unclear whether JPMorgan will formally raise the $10 billion target or by how much. The performance of the Hadrian and Castelion investments, and whether the bank’s push earns strong returns, will not be known for some time.
Conclusion: What to watch next
Investors should watch for further disclosures of JPMorgan’s startup stakes and any formal expansion of the $10 billion commitment. The bank’s next quarterly update may shed light on how the initiative affects capital deployment and buyback levels. Developments at Hadrian and Castelion, including production milestones, will offer early signals on whether the strategy is delivering.
Sources
- CNBC: Robot factories and hypersonic missiles: JPMorgan Chase’s first $5 billion of defense investments (published 2026-10-19)
- jpmorganchase.com: JPMorgan Chase launches $1.5 trillion Security and Resiliency Initiative to boost critical industries
- Yahoo Finance: JPMorgan Chase Invests $5 Billion In US National Security Tech (published 2026-10-19)
- kucoin.com: JPMorgan Chase Invests $5 Billion in Defense Startups in First Year | KuCoin (published 2026-10-19)
Sources accessed on October 19, 2026. Figures as reported by the sources above.
Frequently Asked Questions
How much did JPMorgan Chase invest in startups in the first year of its security initiative?
JPMorgan Chase said on October 19, 2026, that it had invested $5 billion in startups during the first year of its U.S. security and resiliency initiative. That puts the bank halfway toward the $10 billion direct-investment target it announced last year.
Which defense startups did JPMorgan take stakes in?
JPMorgan has taken direct stakes in Hadrian, which builds automated factories for aerospace and defense firms, and Castelion, which is developing a low-cost hypersonic missile called Blackbeard. Most of the bank's other startup investments have not been disclosed.
Who leads JPMorgan's security and resiliency initiative?
Todd Combs, a former Berkshire Hathaway executive and former JPMorgan board member, leads the group making startup investments and reports directly to CEO Jamie Dimon. Co-President Doug Petno oversees the overall investment project, while Jay Horine leads the initiative itself.
How much financing has JPMorgan facilitated under the initiative?
JPMorgan said it had financed and facilitated more than $230 billion in transactions during the initiative's first year. The program aims to support $1.5 trillion in activity over a decade.
What other banks have announced similar investment programs?
Bank of America said in August it plans to invest $250 billion by July 2027 in U.S. digital and infrastructure projects. Morgan Stanley said it would help facilitate about $1.5 trillion of investment over the next decade, according to Yahoo Finance.
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