Why Yolo is betting on early-stage fintech despite funding slowdown
Yolo Investments has closed a €100 million fund to invest in early-stage companies in fintech, blockchain and gaming, with several portfolio firms offering services directly relevant to the payments and digital finance sector.
Announced today (June 19), Fund II consists of €50 million in external capital and a €50 million commitment from parent company Yolo Group. The fund has already made 12 investments, with another 10 expected in the next year.
The raise was completed during a subdued fundraising environment for early-stage venture capital.
According to CB Insights, global fintech funding dropped by 20% in 2024 to US $33.7 billion. However, investor selectivity increased, with the median fintech deal size growing by 33% to US $4 million.
Early-stage fintech funds still attracted attention, accounting for 21% of new fund closes in 2025, according to VC Lab.
Payments and crypto infrastructure in focus
Several of Yolo’s investments highlight current demand for scalable financial infrastructure. Portfolio companies include Boomfi, a crypto-fiat payments gateway, and Pave, which offers programmable banking services designed to support digital assets.
Other investments include Mesh, a firm building open banking infrastructure for crypto transactions, and Coinmena, a digital assets exchange focused on MENA markets. Consumer-facing platforms such as Coverd, Digitt and Syfe also sit within the portfolio, reflecting an interest in embedded finance and alternative investment tools.
“We are encouraged by strong backing despite challenging market conditions. Investors are buying into our approach of combining capital with access to our operational ecosystem,” said Tim Heath, General Partner at Yolo Investments.
Regulated structure and long-term plans
Yolo’s Fund II is structured as a Guernsey-registered limited partnership and is licensed by the Guernsey Financial Services Commission. The firm expects to deploy the remaining capital over the next 12 months.
The full list of portfolio companies so far includes:
- Dabble – social betting operator
- Forever Network – sports media company
- Boomfi – crypto-fiat payments
- Coinmena – digital assets exchange
- Pave – programmable banking
- ParlayPlay – fantasy sports platform
- Mesh – open banking infrastructure
- Coverd – gamified personal finance
- Kraken – digital assets exchange
- Syfe – investment and cash management
- Meld – crypto on-ramp aggregator
- Digitt – credit refinancing platform
While the fund spans multiple verticals, the inclusion of payment-enabling technologies shows where capital is flowing within fintech. Infrastructure which bridges traditional finance and digital assets, or powers programmable and embedded financial tools, is clearly in scope.
