Payment services provider PayPal has committed a total of $50m to eight early-stage venture capital firms targeting black and Latinx-founded companies in the US.
PayPal named seven of the eight funds in its press release: Chingona Ventures, Fearless Fund, Harlem Capital, Precursor Ventures, Slauson & Co, VamosVentures and Zeal Capital Partners.
The commitments form part of a $530m pledge announced by PayPal in June this year to support black-owned businesses and other underrepresented minority groups in the fight for equity and economic equality.
In addition to collaborating with each fund, PayPal will also directly invest in strategic portfolio opportunities through PayPal Ventures, its corporate venturing subsidiary. It had already provided $50m for black-owned equal opportunities financier Optus Bank in August 2020.
The company offers fellowships for graduate students of black or Latin American origin through PayPal Ventures, and has awarded $15m in grants in recent months to help sustain black-owned companies through the covid-19 pandemic.
Dan Schulman, president and chief executive of PayPal, said: “Black and Latinx founders have been underrepresented in venture capital funding for far too long.
“By directing our dollars to investors from underrepresented communities, we are supporting their investment in black and Latinx entrepreneurs at the earliest stages.”