PayPal Winds Down Venture Arm Amid Corporate Restructuring

Fintech giant PayPal is winding down its venture capital arm, PayPal Ventures, amid a significant corporate restructuring. Sources familiar with the situation indicate that the fund's headcount has decreased, and the webpage listing its employees is no longer accessible.

PayPal is reportedly exploring the sale of some of its portfolio holdings on the secondary market. The company has engaged investment bank Jefferies to facilitate these potential transactions.

A company spokesperson stated that PayPal is "exploring strategic options" for PayPal Ventures as part of "continued efforts to sharpen our focus," but did not provide further details.

Established in 2016, one year after PayPal spun off from eBay, PayPal Ventures has invested over $850 million across three funds. It has backed more than 80 companies, including fintech Plaid and crypto custodian Anchorage Digital, and has seen exits such as Bill.com's acquisition of Divvy in 2021. The venture fund's portfolio contributed to PayPal's earnings per share in the fourth quarter of 2025.

This restructuring follows the ousting of former CEO Alex Chriss in February, during whose tenure the company's stock declined significantly. Enrique Lores, previously CEO of HP, was appointed as the new chief executive. Lores has initiated a revamp strategy, including restructuring leadership, placing the Venmo app into a separate business vertical, and announcing sweeping cuts. PayPal is reportedly targeting layoffs for 20% of its staff over the next two to three years.

Lores has indicated the need to accelerate "AI adoption" and "recommit to the fundamentals," with the company aiming for at least $1.5 billion in savings over the next two to three years.

According to Fortune, this information comes from multiple sources familiar with PayPal's operations.