'This is Critical': Two LA Funds Focusing on Diversity Get an Infusion from PayPal

On October 29, 2020, Ben Bergman from dot.LA reported that PayPal Holdings, Inc. announced it will be transferring money to two L.A. firms as part of a $50 million commitment to eight early-stage, Black and Latinx-led venture capital funds.

Slauson & Co., the new fund from PledgeLA chairman Austin Clements focused on people of color, women and LGBTQ+ entrepreneurs; and VamosVentures, the Latinx consumer-focused, early-stage fund founded by Marcos Gonzalez, are both receiving undisclosed investment amounts.

"For a small fund, this is critical," Gonzalez told dot.LA. "Welcoming PayPal into the VamosVentures family will provide insight and resources in a variety of ways. For example, deal referrals, input on diligence of companies we're looking at in the fintech space, and possible business development support for our portfolio. More broadly, we expect to benefit from more general insight on trends and connections to folks in the ecosystem that we might not otherwise be able to access."

Gonzalez said he thinks it is significant that Los Angeles is the only city where PayPal chose to invest in more than one fund.

"I think it shows that L.A. can be an epicenter for early-stage activity around diverse managers, founders and consumers," Gonzalez said. "More specifically, L.A. is a Latino city and we're working to increase the Latinx communities participation in the tech and VC ecosystem."

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