Yoloyolo, a new platform that connects non-fungible token (NFT) owners with brands to sell partnered merchandise, has raised $3.5 million in a seed round from a list of backers that included crypto-focused investment firm ParaFi Capital, Mirana Ventures and Morningstar Ventures.
The capital will be used to help build out the team and onboard new brands, Yoloyolo co-founder and CEO Jason Hu told CoinDesk during an interview. Other participants in the funding round included Avalanche Ventures, UOB Ventures, Signum Capital, Genblock, Yolo Investments and angel investors who included SoftBank Vision Fund’s Neil Cunha-Gomes and former Binance partner Nicole Zhang.
Non-fungible tokens (NFTs) are digital assets such as images or songs that have underlying code verifying the uniqueness of the asset. Large brands have partnered with the more well-known NFT collections like Bored Ape Yacht Club and CryptoPunks to sell merchandise despite the crypto bear market hitting NFTs particularly hard. Gucci partnered with vinyl toy brand Superplastic in January to launch 10 NFTs that each came with a handmade ceramic sculpture, while jewellery brand Tiffany and Co. unveiled a $50,000 CryptoPunk necklace in July.
“One of the biggest problems in the NFT space, that’s also an opportunity for us, is there’s not enough utility,” said Hu. “People spend a lot of money on their Ape NFTs and, especially during this winter, prices drop a lot. We’re just trying to help them generate some revenue from all of the merchandise.”
The Yoloyolo app, which is expected to have its alpha launch in March 2023, will connect top NFT intellectual property (IP) holders with brands and creators in the fashion and lifestyle industries. Yoloyolo will sell the merchandise and take a cut of the sales.
Read more: NFTs and Intellectual Property: What Do You Actually Own?
Yoloyolo has an existing partnership with DEKE, a leading streetwear brand in Asia, according to a pitch deck shared with CoinDesk. Partnerships in progress include charging accessory brand Anker, frisbee maker Europa and cooler brand YETI.
“We frequently see brands, content producers, and IP owners looking for ways to plug into the NFT space. We believe Yoloyolo is building the critical technology stack to allow brands to launch and distribute their NFTs in a seamless manner,” said ParaFi Capital vice president Anjan Vinod in the press release.
