AAA PayPal pitches in $50m for diverse venture capital

PayPal pitches in $50m for diverse venture capital

Digital payment services provider PayPal has committed an additional $50m to 11 black and Latinx-led venture capital funds, it revealed on Wednesday.

The funds include those managed by Aperture Venture Capital, Collab Capital, Interlace Ventures, Kapor Capital, MaC Venture Capital, Noemis Ventures, Seae Ventures and SV Latam Capital. The corporate has also backed three undisclosed additional funds.

Paypal had initially committed $50m to eight black and Latinx-led VC funds in October 2020. The commitments are part of a $535m PayPal initiative to support black and minority-owned businesses and communities in the United States.

Alongside the commitments, PayPal will also supply the funds with industry expertise, resources and access to its networks. The company plans to make direct investment together with the funds through its corporate venturing arm, PayPal Ventures, on a selective basis.

PayPal Ventures focuses on companies in the financial services, commerce enablement and payments infrastructure sectors.

Dan Schulman, president and CEO of PayPal, said: “Venture capital funds led by black and Latinx managers expand wealth creation opportunities for diverse founders.

“Over the long-term, the $100m we are investing in 19 exceptional venture capital firms will help to foster a next generation of diverse founders that are building products and services that empower a more inclusive economy. These investments grow from our commitment to advance a more just and equitable society.”