PayPal will gradually shut down its venture capital division PayPal Ventures and is considering selling some investment positions through the secondary market

According to Fortune, PayPal is shutting down its 10-year-old corporate venture capital arm, PayPal Ventures. It is reported that PayPal plans to sell some of its investment positions in the secondary market and has hired investment bank Jefferies to assist with potential transactions. Since its establishment in 2016, PayPal Ventures has invested in over 80 startups, including Plaid and Anchorage Digital, through three funds totaling more than $850 million.

The reduction of the venture capital department comes after the new CEO Enrique Lores took over the company. To cope with fierce competition in the payment market and the previous decline in stock prices, PayPal is currently advancing a comprehensive organizational restructuring, planning to cut 20% of its workforce over the next two to three years to save at least $1.5 billion in costs, and refocusing its strategic emphasis on core foundational business and the application of AI technology.