Number of investments: 59
Notable investments: Personal Capital, TradingView, BitGo
Key people: Michael McMahon, managing partner; Sach Chitnis, managing partner; Peter Johnson, partner and fintech investments lead
Strategy: Michael McMahon and Sach Chitnis were both looking to raise a venture capital fund in 2012 when they were introduced to Paul Gurinas and Bill Disomma, the founders of Chicago market-maker Jump Trading. Gurinas and Disomma just so happened to be interested in getting in venture investing. A partnership was formed, creating Jump Capital.
Seven years later, Jump Capital has made dozen of investments in startups focused on enterprise software, fintech, IT infrastructure, and digital media. The firm's investments range in size between $1 million and $15 million, with the majority landing between $5 million and $10 million.
"Our goal is to make smart investments in promising entrepreneurs, add value to those investments beyond capital, and scale businesses," said Peter Johnson, a principal at Jump Capital who leads the firm's fintech investments. "We have a broad investment mandate, so we are not constrained by a corporate parent and furthering their initiatives."
Originally, Jump Capital's focus was on startups in the middle part of the country, leveraging the company's Chicago roots. However, eventually the fund expanded to the coasts, making investments in New York- and San Francisco-based companies, among other places.
And despite having the backing of one of the most-active trading firms in the world in Jump Trading, deals aren't always made because of potential strategic partnerships. Some investments do offer the opportunity for Jump Capital's parent company to participate, such as the one made into the Small Exchange.
However, Johnson said a majority of startups the fund invests in aren't related to Jump Trading's business at all. Other companies Jump Capital has backed include ParkWhiz, which allows people to reserve parking spots ahead of time, and Gauss, which monitors surgical blood loss in real time.
Johnson said that speaks to Jump Capital's independence.
"A lot of corporate venture funds, their number one goal is not to make money. It is to serve their corporate parent," he said. "We are here to make money. If we did not make money, we failed."