Lisha Bell, PayPal's Equal Opportunity Fund Manager, spoke to writer Fred Albert about her company's decision to invest in SVLC (now Endurance28) as a limited partner, and the benefits they see for both PayPal and the world at large.
FRED ALBERT: What is it you do at PayPal Ventures?
LISHA BELL: PayPal Ventures is an economic opportunity fund, which is a commitment to diverse, first-time emerging fund managers. We provide catalytic capital to general partners to really kickstart their fund..
What does PayPal Ventures consider when evaluating venture funds for investment?
We look at the general partner's track record and expertise, and we look at their commitment to expanding the venture ecosystem. We also look for synergies: Are they investing in early-stage founders that we are interested in at a later stage - particularly fintech-related?
What motivated PayPal to invest in Endurance28 as a limited partner?
Consuelo has an amazing track record based on her time in Mexico City, her engineering pedigree, her technical background, and her prior investment into major entities such as Clip. She's a solid investor, she knows how to build, and she has a very impressive due diligence process for each investment..
What do you think sets Endurance28 apart from other venture investments?
That's a great question. Funds are differentiated by their investment thesis, and Consuelo's is about happy people, happy planet. It's uncommon in my world of investing to have that combination of humanity and progress.
How do you measure a fund's success?
We look at all the typical financial performance metrics. We also look at altruistic perspectives: Did this person evolve an ecosystem? Did this person evolve an innovation? Did this person invest in people? Those are the things that matter: that we change people's lives.
What advice would you give to other corporations that are considering venture investment?
It's an amazing way to diversify your balance sheet if you're a corporate investor. [The] portfolio [in] our economic opportunity fund is over 90% women and people of color. And you can support these companies in a different way than other limited partners, because you have access to HR, marketing, PR, communications.
Do you think we'll ever reach a point where all founders receive equal attention?
I hope so. But it won't happen until we disrupt the racial wealth gap. So few people control all the capital, and that's why we want to build wealthy founders who can invest and make their people wealthy. We definitely have a long way to go.
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