Feb 16, 2021

Gaming and fintech sub-fund launched by Yolo Investments

gaming
subfund
yoloinvestment
Fintech
Joanna England
2 min
Gaming and fintech sub-fund launched by Yolo Investments
Yolo Investments is searching for investment opportunities after launching a new gaming and fintech sub-fund...

Yolo Investments, an investment fund run by Coingaming founder Tim Heath, has announced the launch of a new gaming and fintech sub-fund.

According to reports, the fund will seek investments focussed on A-stage and seed-stage opportunities in fintech and gaming markets. 

Yolo, wh ich was founded in 2017 and was rebranded from Vereeni to Yolo, was created by Heath to draw on his experience across the gaming, blockchain and technology spaces. 

New investment opportunities

Reportedly keen to move away from the management of the crypto-casino and sports betting operator, Heath decided to concentrate on growing Yolo's reputation as a venture capital organisation.

"We have already assembled a diverse portfolio of high-growth companies across gaming and fintech and are now looking to build specialised sub-funds to specifically focus on these verticals," explained Heath, who added that the new sub-fund is concentrating on seed-stage and A-stage investment opportunities.

Currently, Yolo Investments manages assets in over 50 companies, with a collective value of over $242m. The investment fund has also inherited all Vereeni Investments assets and holdings.

"These new sub-funds in Yolo Investments will continue the fantastic work of Vereeni Investments over the last couple of years," Heath said, adding that Yolo was now in a position to provide significant upside to investments via the company's network.

"With more than $242m AUM, we are actively searching for disruptive businesses to which we can add value and open for investment from Limited Partners," he pointed out.

Heath, who was an early adopter of Bitcoin, said the fund's previous investments include Casino Content Studios, OneTouch and Green Jade Games, and fintech companies coins.io, and Credis Bank.

The move was followed by the successful floating of Yeahka on the Hong Kong Stock Exchange. The leading Chinese payment-solution technology platform specialises in the provision of payment and business services to merchants and consumers.

The fund has also announced its first successful exit, obtaining a six-fold return on its investment in Coolbet, the Estonia-based gaming operator acquired by GAN Limited in 2020. 

Heath is partnered with co-founder of RB Capital, Julian Buhagiar, Coingaming Group chief commercial officer Steve Tsao and director of mobile casino developer OneTouch Ragnar Toompere, who will be general partners in the fund.

Maarja Pärt, Coingaming Group's CEO, and the group's chief investment officer, Jaan Lainurm, will also sit on the fund's management board. 

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Jun 10, 2021

FIVE things fintechs must do to keep investors onboard

Fintech
Investment
venturecapital
AI
Brandon Rembe, CPO, Envestnet...
4 min
Fintech innovations drew in first-time investors who reshaped the markets. What new advancements will help them continue their rise?

New investors flocked to the stock market during the COVID-19 pandemic. Thirty-eight percent of investors said they had never had a brokerage or similar account before opening one in 2020.

Low or no-fee trading options have helped accelerate the trend – nearly half of new investors said they accessed their account primarily through a mobile app. As FinTechs, how do we create the trust needed to keep new investors in the market and create a fruitful customer experience for them?

The financial industry does a disservice to individual investors if we merely offer tools that focus on making money quickly, an approach that usually backfires. Instead, the surge of interest presents an enormous opportunity for those who want to help more consumers use financial technology to educate them on responsible spending, saving, and investing in order to achieve financial wellness current fintech tools have welcomed individual investors in the door.

Now, it’s time to focus on education and improving their experience going forward. There are several ways those of us in fintech can step up to shape the future of retail investing so that it works better for everyone, starting with the following areas.

Equal access to financial wellness education

Financial health should be available to everyone — but today, not everyone has the educational resources to achieve it. One study shows that only 3.9% of students from low-income schools were required to take a personal finance class. What they aren’t learning in school or from family members, fintech companies can provide on their platforms.

The companies should move from solely offering financial services to a more responsible model of education, advice, and prescriptive choices to help consumers develop better habits and make wiser financial decisions. Not only can they empower consumers and bridge historical wealth divides, but they can also stimulate growth by opening up new consumer segments.

More personalisation

Just as we’ve come to expect that our fitness routines are tailored to our individual bodies, we’re also ready for finance tools that go beyond one-size-fits-all solutions. But only six percent of financial institutions say they’re using the kind of technology that allows them to deliver a deeply personalized experience. Fintech tools need to reflect that financial success looks different for each of us.

For one consumer, it may mean providing guidance on how to pay off student loans early; for another, it may mean prescriptive actions that enable them to stick to a budget for the first time; for a third, it could look like prioritizing environmental, social and governance (ESG) investments, so that her portfolio aligns with her political beliefs.

Now, we are seeing financial technology beginning to meet the demands of personalized finance in a substantial and meaningful way.

The rise of AI-Powered Advice

Big-picture advice and predictive guidance used to be a feature of high-end financial advisory firms — a perk only available to those who could afford it. But thanks to rapid advancements in data analytics and artificial intelligence (AI), that kind of holistic advice is now more accessible than ever. AI-driven robo-advisors can parse many different streams of financial information, delivering customized answers to key questions: Is it time to buy a home, or is it smarter to keep renting? Can I afford to take out another student loan?

Intelligent connectivity powered by AI can anticipate consumers’ needs and next steps, making proactive suggestions that guide them along the path to financial wellbeing. Fintech companies can also help consumers identify when their financial picture becomes too complex for a robo-advisor, and help them find a human financial advisor to meet their needs. 

Focus on financial mental health

New investors are quickly finding that the market can be overwhelming. That’s not surprising, financial anxiety is common and studies show that financial stress can have an impact on mental health for some.

It’s not enough for fintech companies to give retail investors access; they also must provide the guidance and support that help consumers manage their financial well-being. Educational tools can ensure that consumers are well informed about their options.

Predictive analytics can anticipate consumers’ questions, serving them key information and insights before they ask. Features that emphasize a comprehensive notion of financial well-being, rather than short-term wins and losses, can also help ensure that consumers are keeping their eyes on the bigger picture.

Gamification for good

The surge of gamification apps has done an impressive job making investing as engaging as playing a video game or joining a social media platform.

Much of the current use of gamification emphasizes short-term thinking, but there’s also an opportunity to help consumers think more broadly about their overall financial picture. One example is peer benchmarking, a feature that enables help consumers to see how their financial habits compare to those of friends and fellow consumers.

Gamification can also be used to incentivize making smaller, smarter choices — for example, rewarding saving over making an impulse buy.

The future of fintech is about more than just broadening access to the markets. It’s about making sure more individuals have access to the tools that can help improve their financial well-being—in the ways that suit their own circumstances and needs. The potential to act within their own set of individual priorities, with their long-term financial wellness in mind is much more empowering to a consumer than simply relying on short-term, high-risk investments.

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