PayPal is shutting down PayPal Ventures, its decade-old corporate venture capital arm, as part of a broad restructuring under new leadership. The move is a key component of the company's plan to sharpen its focus on core businesses like its branded checkout services and Venmo, and aligns with a previously announced $1.5 billion cost-saving initiative.
The venture unit, established in 2016, had invested over $850 million in more than 80 companies. Its staff has been drastically reduced from over ten employees to just two. The company is now exploring strategic options for its portfolio, which includes prominent fintechs like Plaid and Anchorage Digital, and has hired investment bank Jefferies to explore potential sales of its holdings on the secondary market.