ParaFi Capital among backers of fashion and lifestyle platform Web3 Yoloyolo
Yoloyolo, a new platform that connects non-fungible tokens (NFT) brand owners to sell merchandise, raised $3.5 million in a seed funding round from backers including crypto-focused investment firm ParaFi Capital, Mirana Ventures and Morningstar Ventures.
The capital will be used to help hire more employees and onboard new brands, Yoloyolo co-founder and CEO Jason Hu told CoinDesk in an interview.
Other participants in the funding round were Avalanche Ventures, UOB Ventures, Signum Capital, Genblock Capital, Yolo Investments. Individual investors included Neil Cunha-Gomes of SoftBank’s Vision Fund and Nicole Zhang, a former partner at crypto exchange Binance.
NFTs are digital assets such as pictures or songs that have an underlying code verifying the uniqueness of the asset. Major brands have formed partnerships with well-known NFT collections like Bored Ape Yacht Club and CryptoPunks to sell merchandise despite the crypto bear market hitting NFTs particularly hard. Gucci has partnered with vinyl toy brand Superplastic in January to release 10 NFTs each accompanied by a handmade ceramic sculpture, and jewelry retailer Tiffany unveiled a $50,000 CryptoPunk necklace in July.
“One of the biggest problems in the NFT space, which is also an opportunity for us, is that there’s not enough utility,” Hu said. “People are spending a lot of money on their Ape NFTs, and especially this winter the prices are coming down a lot. We are just trying to help them generate income from all merchandise. »
The Yoloyolo app, which is expected to launch in March, will connect leading NFT intellectual property holders to brands and designers in the fashion and lifestyle industries. Yoloyolo will sell the merchandise and take a share of the sales.
Yoloyolo has an existing partnership with DEKE, a leading streetwear brand in Asia, according to a pitch deck shared with CoinDesk. Ongoing partnerships include charging accessory brand Anker, frisbee maker Europa and cooler brand YETI.
“We frequently see brands, content producers and intellectual property owners looking for ways to plug into the NFT space. We believe Yoloyolo is building the essential technology stack to enable brands to launch and distribute their NFTs seamlessly,” ParaFi Capital Vice President Anjan Vinod said in a press release.