PayPal Explores Venture Arm Shutdown in Corporate Overhaul

PayPal is considering shutting down its venture capital arm as part of a broader corporate shakeup, Fortune reported Tuesday. A company spokesperson told the publication that PayPal is “exploring strategic options” for PayPal Ventures but declined to provide additional details.

Five unnamed sources told Fortune that the venture arm is being closed. One source said PayPal is looking to sell some of its positions on the secondary market.

PayPal Ventures was founded in 2016. It has backed more than 80 companies across three funds totaling over $850 million, Fortune reported. The fund contributed 10 cents to PayPal’s earnings per share in the fourth quarter of 2025. A year earlier, it cost the company 4 cents per share.

The potential closure comes as PayPal undergoes a broader reorganization. The company announced April 29 that it would split into three business units: checkout solutions and PayPal; consumer financial services and Venmo; and payment services and cryptocurrency.

Enrique Lores, who became CEO on March 1, described the overhaul as “a very aggressive transformation plan” during an earnings call on May 5. CFO Jamie Miller said the company is “realigning the organization to sharpen strategic focus, eliminate duplication and remove layers, enabling faster decision-making and clearer accountability.”

Lores had served on PayPal’s board for nearly five years before becoming CEO. He was board chair from July 2024 until his appointment.