JPMorgan fund to underwrite social media companies

New York—JPMorgan Chase & Co. will create a new fund to underwrite such social media companies as Twitter and Groupon, in anticipation of their going public.

As reported by The Wall Street Journal, the fund aims to raise between $500 million and $750 million to invest in social media companies with established business models and steady revenue prior to offering stock for sale to the public.

JPMorgan's move follows by one month Goldman Sachs Group's $1 billion private offering for Facebook, which is anticipated to go public sometime this year or in early 2012.