PayPal has announced that it will invest an additional $50 million in 11 Black and Latinx-led early-stage venture capital funds. The funds include Aperture Venture Capital; Collab Capital; Interlace Ventures; Kapor Capital; MaC Venture Capital; Noemis Ventures; Seae Ventures; SV LATAM Capital; and three additional funds.
“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.”
The investment builds upon the $50 million investment by PayPal in eight Black and Latinx-led early-stage venture capital funds announced in October 2020. It is also part of the company’s larger commitment to invest $535 million to support Black-owned businesses, strengthen underrepresented minority communities and fight for racial equity and economic equality.
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’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.”