By Alfonso Villanueva, Ivy Lau, Jay Ganatra, Jeremy Jonker, Mario Ruiz, Peter Sanborn, and Usman Ahmed
Corporate Venture Capital (CVC) has established itself over the last half century as a powerful force in investing. Over that same period of time, the racial wealth gap in the United States has grown to unprecedented levels. Venture capital investment is strongly correlated with long-term wealth creation. Yet, Black, Indigenous and People of Color (BIPOC) founders have struggled to raise venture capital.
PayPal made a $535 million commitment to racial equity in June 2020, including $100 million that has been invested in Limited Partnerships in BIPOC venture funds that disproportionately fund BIPOC entrepreneurs.
PayPal Ventures and PayPal’s Global Public Policy and Research Team authored this White Paper to share some of the lessons and challenges on our journey, with the hope of catalyzing other CVC teams, other forms of private capital, as well as the public and social sectors to invest in BIPOC fund managers, entrepreneurs and communities.
Here are six takeaways from the white paper:
You can download and read the full white paper here. Read also about research conducted in partnership with historically Black colleges and universities (HBCUs) that outlines opportunities for the financial services industry economically empower Black communities and advance racial justice here.
At the time of writing, Alfonso Villanueva, Jeremy Jonker, Peter Sanborn, Jay Ganatra, and Mario Ruiz were part of the PayPal Ventures team; Ivy Lau and Usman Ahmed are part of the Global Public Policy and Research team.
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