White Paper: Corporate Venture Capital can Help Narrow the Racial Wealth Gap
Oct 11, 2021

CorporatePayPalResearch and InsightsSocial Innovation

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 Americans and other 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 (link) 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.

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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