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PayPal winds down venture arm as fintech giant restructures under new CEO
Fortune • • business
Key Points:
- PayPal is considering selling some positions from its corporate venture capital arm, PayPal Ventures, and has engaged investment bank Jefferies to assist with potential transactions.
- PayPal Ventures, established in 2016, has invested over $850 million across more than 80 companies, including notable investments in Plaid and Anchorage Digital, contributing positively to PayPal’s earnings in recent quarters.
- The decision to explore strategic options for PayPal Ventures follows the ousting of former CEO Alex Chriss amid concerns about the company’s competitive position and stock performance.
- New CEO Enrique Lores has initiated a company-wide restructuring, including separating Venmo into its own business unit and planning significant layoffs of up to 20% of staff over the next few years to refocus the company’s efforts.
