PayPal is closing PayPal Ventures, its corporate venture capital arm, which began in 2002. New CEO Enrique Lores aims to save $1.5 billion and reduce the company’s global workforce by 20%.
This decision follows the closure of Fidelity International Strategic Ventures in May 2026. Two corporate venture capital arms shutting down in six weeks raises important questions about weaknesses in the model.
PayPal Ventures invested in more than 156 companies, with 61 still active, including 14 unicorns such as Plaid, Olo, and Tabby. Jefferies is now reviewing options to sell the remaining stakes on the secondary market.
For more than 20 years, funding from PayPal Ventures offered more than capital. Startups gained access to a strong distribution network, hundreds of millions of PayPal users, and support from a major payments company. That benefit is now gone.
Earlier this week, PayPal confirmed it will wind down PayPal Ventures, its corporate venture capital arm founded in 2002 and one of the longest-running in fintech, as Fortune reports. This move is part of a major restructuring led by new CEO Enrique Lores.
