PayPal Holdings, Inc. announced that it will invest an additional $50 million in 11 Black- and Latinx-led early-stage venture capital funds, including Aperture Venture Capital; Collab Capital; Interlace Ventures; Kapor Capital; MaC Venture Capital; Noemis Ventures; Seae Ventures; SV LATAM Capital; and three additional funds. These build upon the $50 million investment by PayPal in eight Black and Latinx-led early-stage venture capital funds announced in October 2020 and are part of the company’s commitment to invest $535 million to support Black-owned businesses, strengthen underrepresented minority communities and fight for racial equity and economic equality.
“Venture capital funds led by Black and Latinx managers expand wealth creation opportunities for diverse founders,” said Dan Schulman, president and CEO, PayPal. “Over the long-term, the $100 million 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.”
PayPal will work collaboratively with these early-stage funds to provide resources, relationships and deep industry expertise, and, in some cases, invest directly in businesses alongside the funds through PayPal Ventures, its venture capital arm. PayPal Ventures invests in series A through later funding rounds of startups in areas of strategic relevance to PayPal, including financial services, commerce enablement and payments infrastructure.
“We are excited to have PayPal join our growing list of corporate investors that are seriously committed to creating a more inclusive economy. Commerce and fintech will play critical roles in building the future and Aperture’s portfolio companies will greatly benefit from PayPal’s engagement, capabilities, and resources,” said William Crowder, founding partner, Aperture Venture Capital.
“We’re excited to have PayPal join us as partners, as we work together to tackle the access to capital problem that has plagued Black innovators for generations,” said Jewel Burks, managing partner, Collab Capital. “While our fund alone will not solve the wealth gap, we do see our work as an important piece to the puzzle and believe PayPal will be integral to this work for many years to come.”
“An exciting opportunity exists to completely transform the way we shop in the U.S., and we’ve already seen the industry accelerate rapidly over the last year due to Covid-19,” said Joseph Sartre, managing partner, Interlace Ventures. “We strongly believe that underrepresented founders will produce the next big innovations in commerce. We are proud to partner with PayPal and fund the next generation of commerce technology for a better commerce experience.”
“PayPal is once again taking a step in the right direction by championing diversity and investing in black and Latinx-led venture capital firms,” said Marlon Nichols, founding managing partner, MaC Venture Capital. “We’re looking forward to continuing working with PayPal and are grateful for their investment to drive positive change in venture capital and beyond, especially as we continue to uplift and provide valuable resources for future early-stage founders creating game-changing initiatives.”
“Closing the gender and racial equity gaps starts with investing in historically overlooked entrepreneurs. For too long women and BIPOC entrepreneurs have not had equal access to capital” said Tuoyo Louis, co-founder and managing partner, Seae Ventures. “At Seae Ventures we are committed to improving how vulnerable and traditionally underserved communities access and pay for quality healthcare. We are thrilled to partner with PayPal to address the inherent inequities in the healthcare system.”
“We are honored to have PayPal as an investor in SV LATAM Fund II. As one of the first Latinas to found an early-stage venture capital firm in Silicon Valley with top-performing financial returns, I appreciate the trust and support that PayPal has vested in us,” Consuelo Valverde, founder and managing partner, SV LATAM Capital. “PayPal’s investment will allow us to back extraordinary diverse founders that are solving difficult and important problems to transform societies, the environment, and health.”
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