PayPal Holdings Inc. (PayPal (PYPL)) is closing down PayPal Ventures, its corporate investing group that has been around for about a decade. The unit's staffing has dwindled to just two people, down from more than 10 late last year. PayPal has also been weighing secondary-market sales of some venture stakes and brought in Jefferies to advise on possible deals, according to Fortune.
"As part of our continued efforts to sharpen our focus, we are exploring strategic options for our corporate venture capital arm, PayPal Ventures," a PayPal spokesperson told the publication without sharing additional details.
The pullback from corporate venture investing comes after leadership changes earlier this year. Former CEO Alex Chriss left in February, and PayPal named Enrique Lores, previously HP's chief executive, to take over. PayPal, in a prepared statement, said, "The pace of change and execution was not in line with the Board's expectations," as it explained the shift. Lores has since reorganized parts of the company, including placing Venmo into its own business segment and rolling out management changes.
The venture portfolio also swung to a positive earnings contribution in late 2025, adding 10 cents to PayPal's $1.53 in fourth-quarter earnings per share after reducing EPS by 4 cents in 2024, Fortune noted. PayPal also announced broad cost reductions in May and has been targeting staff cuts totaling 20% over the next two to three years. On a May earnings call, Lores said PayPal needed to speed up "AI adoption" and "recommit to the fundamentals," while another executive said the company is aiming for at least $1.5 billion in savings over the next two to three years.
PayPal Ventures was created in 2016, a year after PayPal separated from eBay, and it has invested directly from the company's balance sheet. Across three funds, it has backed more than 80 startups with total commitments topping $850 million. Some of the better-known investments include fintech infrastructure company Plaid and crypto bank Anchorage Digital. The company's exits include Bill.com's acquisition of Divvy in 2021.
