PayPal is discontinuing its venture capital arm, PayPal Ventures, as part of a corporate restructuring under new CEO Enrique Lores, following the departure of former CEO Alex Chriss. The venture team's size has drastically reduced from over ten members to just two, and the company is contemplating selling some of its investments. Established in 2016, PayPal Ventures has invested in over 80 companies totaling more than $850 million, with a notable impact on PayPal's earnings. The restructuring comes as part of a strategy to streamline operations and achieve significant cost savings.

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Startups & Venture PayPal Holdings

Exclusive: PayPal winds down venture arm as fintech giant restructures under new CEO

By Ben Weiss Ben Weiss

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By Ben Weiss Ben Weiss

Crypto Reporter Down Arrow Button Icon

June 16, 2026, 3:53 PM ET

Enrique Lores, president and CEO of PayPal.

Enrique Lores, president and CEO of PayPal.Annabelle Chih—Bloomberg/Getty Images

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PayPal is shuttering its 10-year-old venture team amid a broader corporate shakeup, according to five sources familiar with the matter. The fund’s headcount has shrunk from more than 10 in late 2025 to now only two, according to an archived version of the website for PayPal Ventures. Meanwhile, the page that listed the venture unit’s employees is no longer visible.

‘Recommit to the fundamentals’

The wind-down of PayPal’s venture team comes after the fintech’s prior CEO Alex Chriss was ousted in February. During Chriss’s almost-three-year tenure, the company’s stock had dropped more than 30%, and the board of directors worried that the payments firm was falling behind competitors, including Stripe and Apple, which have their own checkout products. “The pace of change and execution was not in line with the Board’s expectations,” read a press release announcing the transition.

In Chriss’s place, PayPal appointed Enrique Lores, who was previously the president and CEO of the consumer device giant HP. The new executive quickly promised to revamp the fintech. He put the consumer payments app Venmo into a separate business vertical, restructured leadership, and spearheaded a sweeping set of cuts announced in May. PayPal is reportedly targeting layoffs of 20% of its staff over the next two or three years.

Lores said in a May earnings call that the fintech needed to accelerate “AI adoption” and “recommit to the fundamentals.” The company intends to deliver at least $1.5 billion in savings over the next two to three years, said another PayPal executive during the call.

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Startups & Venture PayPal Holdings

Exclusive: PayPal winds down venture arm as fintech giant restructures under new CEO

By Ben WeissJune 16, 2026

5 hours ago