Here Comes the Dumb Money: JPMorgan Raises $1.2 B. Digital Fund

blowing up balloon Here Comes the Dumb Money: JPMorgan Raises $1.2 B. Digital FundNew York’s biggest banks can’t seem to get enough of the top Web properties, despite balooning valuations. 

This morning, JPMorgan filed regulatory papers on a new $1.22 billion digital growth fund, twice as large as reported last week. 

According to Scott Walker at Venture Capital Dispatch, the fund seems to be geared toward buying private shares, not investing directly, as Goldman Sachs did with Facebook.

The announcement will surely spur the SEC to ramp up its investigation of the markets for private shares in tech companies, something it began to do after the Goldman-Facebook deal was announced. 

bpopper [at] observer.com | @benpopper