PayPal helps entrepreneurs with MetLife and Village Capital
PayPal, venture capital firm Village Capital and financial health expert, MetLife Foundation, have come to together to launch Finance Forward – a global coalition to support fresh entrepreneurs.
The alliance will reach out to more than 100 fintech health entrepreneurs in the US, Latin America, Europe, the Middle East and India, providing targeted business development support, grants, and equity.
Finance Forward will pour in $850,000 in capital through grants and direct investments, with an aim to drive at least $10 million in follow-on funding to program participants over the next five years.
“We’ve seen real progress on financial inclusion in the past few years, thanks in large part to mobile phones, a changing regulatory environment, and a new generation of companies creating true technology innovation in fintech,” says Village Capital CEO, Allie Burns.
She adds: “But simply being included is only the start; now that people are in the system, we need to make sure they can actually use the system to build their financial health: the ability to manage your income, get a loan when you need it, and plan for your financial future.”
The bloc of three want to improve the financial health of 700,000 low-income people and 10,000 micro and small businesses owners.
To hit these numbers there will be nine regional accelerator programmes and boot camps over the next two years, where participating companies can receive $25,000-$75,000 capital – the theory being that tech entrepreneurs will change how low-income people benefit from the financial sector.
PayPal and MetLife will also volunteer thought leaders offering 1-1 mentorship alongside other industry partners, including Moody’s Corporation in Latin America.
“Even with the rapid increase in bank accounts in emerging markets, many people remain significantly undeserved by the financial system today,” says PayPal’s corporate affairs director, Tyler Spalding.
“This is PayPal’s purpose, and we’re proud to work with Village Capital and their global community of entrepreneurs to democratise financial services for the undeserved.”