Acquired Season 3 Episode 7: Venmo (live with Andrew Kortina)

Braintree Sale

The acquisition of Venmo by Braintree marked a pivotal moment in the company's history. Andrew Kortina explains that the deal, valued at $26.2 million, was influenced by Venmo's potential to complement Braintree's merchant network 1. Despite initial skepticism from Braintree employees due to Venmo's financial struggles, the acquisition was seen as a strategic move to harness Venmo's consumer base. Ben Gilbert highlights the boldness of this decision, noting, "Bill took a huge chance with his internal team and internal culture in the direction that company was going" 1.

   

PayPal Acquisition

Following the acquisition by Braintree, Venmo's explosive growth caught the attention of PayPal. Andrew Kortina recalls that Venmo's growth rate was a significant factor, with the company processing around a billion dollars annually at the time of PayPal's acquisition 2. PayPal recognized the potential to capture the millennial market, which was not engaging with their existing platform. Ben Gilbert notes, "Venmo did $17 billion in gross transaction volume last quarter, which is incredible" 2.