SAN JOSE, Calif., Oct. 28, 2020 /PRNewswire/ -- PayPal
Holdings, Inc. (NASDAQ: PYPL) today announced it will invest
$50 million in eight
early-stage, Black and Latinx-led venture capital funds: Chingona
Ventures; Fearless Fund; Harlem Capital; Precursor Ventures;
Slauson & Co.; VamosVentures; Zeal Capital Partners; and one
additional fund. The investments are part of PayPal's commitment to
invest $530 million to support
Black-owned businesses, strengthen underrepresented minority
communities and fight for racial equity and economic equality.
"Black and Latinx founders have been underrepresented in venture
capital funding for far too long," said Dan
Schulman, president and CEO, PayPal. "By directing our
dollars to investors from underrepresented communities, we're
supporting their investment in Black and Latinx entrepreneurs at
the earliest stages. We're honored to support this outstanding
group of venture capitalists as we seek to bring more equity to the
fundraising process."
PayPal will work collaboratively with these early-stage funds
and, in some cases, invest directly in businesses 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. PayPal will also
begin offering a three-month fellowship to a Black or Latinx
graduate student each semester, through which the PayPal Ventures
team will provide coaching, training and mentoring.
"PayPal recognizes that our lived experience allows us to deeply
empathize with the journey of other women of color entrepreneurs,"
said Arian Simone, founding partner
of Fearless Fund. "Women of color should be able to pitch to people
who look like them on the other side of the table. We're excited to
begin this relationship with PayPal."
"I believe this initiative from PayPal will have real impact on
the demographics of founders that receive funding at the
seed-stage," said Charles Hudson,
founding partner of Precursor Ventures. "Not only that, but the
PayPal team can bring unique counsel and expertise to these
companies as they grow."
"We're proud to welcome PayPal as an inaugural investor in our
new fund," said Austin Clements,
founding partner of Slauson & Co. "Through our investments, we
hope to be a catalyst for positive change for people who face
historic disparities in access to capital and
opportunity."
"Not only is it undeniable that there is a pipeline of
extraordinary diverse tech visionaries who are being overlooked, it
is also imperative to the country to fully utilize and incorporate
their ideas, talent and gumption," said Marcos C. Gonzalez, founding partner of
VamosVentures. "PayPal's investment, alongside those from our other
limited partners, will help us support this group and improve the
landscape for everyone."
"Now more than ever, it's abundantly clear that we need more
businesses delivering solutions to bridge the wealth and skills gap
at scale," said Nasir Qadree,
founder and managing partner of Zeal Capital Partners. "We're
thrilled to have PayPal recognize that our Inclusive Investing™
strategy positions us to source, invest and scale high growth
early-stage businesses across the U.S. and beyond the major finance
and technology hubs."
In September, PayPal awarded approximately $5 million in grants to 20 nonprofit community
partners to support Black-owned businesses across the U.S. in their
recovery from the impact of the COVID-19 pandemic. In August,
PayPal completed the distribution of $10
million in empowerment grants to Black-owned small
businesses to help them stabilize and reopen during the pandemic.
The company also announced a $50
million deposit in Optus Bank, a Black-owned bank based in
South Carolina dedicated to
providing equal access to capital and financial services for
minority communities, as part of an initiative to make
deposits in Black- and minority-owned financial
institutions.
About the Funds
Chingona Ventures seeks to
drive returns by investing in founders with a unique
perspective on a customer base that many venture investors do not
understand. These founders come from non-traditional
backgrounds. Its belief is that if you have a truly
diverse portfolio, you will beat industry average
returns. Founded by Samara Mejia Hernandez, Chingona
Ventures is based in Chicago.
Fearless Fund invests in women of color-led
businesses seeking pre-seed, seed level or series A
financing. Its mission is to bridge the gap in venture
capital funding for women of color founders building scalable,
growth aggressive companies. Fearless Fund is built by women of
color for women of color. Founded
by Arian Simone, Keshia Knight Pulliam and Ayana
Parsons, Fearless Fund is based in Atlanta.
Harlem Capital is an early-stage venture capital
firm on a mission to change the face of entrepreneurship by
investing in 1,000 diverse founders over the next 20
years. It makes investments of $500,000 to $1
million in Seed and Series A rounds. Founded by
Henri Pierre-Jacques and Jarrid
Tingle, Harlem Capital is based in New York.
Precursor Ventures invests in people over
product at the earliest stage of the entrepreneurial
journey. Precursor Ventures is a classic seed-stage venture
capital firm investing in long-term relationships with founders it
believes in. Founded by Charles
Hudson, Precursor Ventures is based in San
Francisco.
Slauson & Co. is a platform comprised of
creators, investors, entrepreneurs, operators and community
builders. It represents a culture where values
matter and a belief that entrepreneurship is the most powerful
vehicle to enable economic inclusion. It provides a
pathway to success for people of color, women and LGBTQ+
entrepreneurs by providing access to capital, mentorship and
operational resources. Founded by Austin Clements and
Ajay Relan, Slauson & Co. is
based in Los Angeles.
VamosVentures has a mission to generate market
returns and empower diverse communities through wealth creation,
talent pipeline building, social mobility and unique tech-driven
solutions to challenges persistent in our communities. Founded by
Marcos C. Gonzalez, VamosVentures is
based in Los Angeles.
Zeal Capital Partners sees an opportunity to
partner with diverse management teams building
early-stage businesses that are bridging
America's wealth and skills gap and reimagining
the building blocks of wealth – from education to employment and
financial health. Founded by Nasir Qadree, Zeal Capital
Partners is based in Washington, D.C.
About PayPal
PayPal has remained at the
forefront of the digital payment revolution for more than 20 years.
By leveraging technology to make financial services and commerce
more convenient, affordable, and secure, the PayPal platform is
empowering more than 300 million consumer and merchants in
more than 200 markets to join and thrive in the global economy. For
more information, visit paypal.com.
Media Contact:
Taylor Watson
taywatson@paypal.com
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SOURCE PayPal Holdings, Inc.