Yotta raises $3.3 million

Yotta Savings, the startup helping people save money and win prizes of up to $10 million through weekly number draws, has raised $3.3 million from Slow Ventures, FundersClub, TwentyTwo VC, Chapter One, CapitalX, Y Combinator and some angel investors. The startup recently graduated from Y Combinator’s accelerator program.

Founded in 2019, Yotta Savings was inspired by Premium Bonds in the UK, where 23 million people participate in savings product with a chance to win big prizes. Premium Bonds are an investment product issued by the UK government. Unlike other investments where you earn interest or a regular dividend income, with Premium Bonds you are entered into a monthly prize draw where you can win between £25 and £1 million tax free.

Yotta rewards savings account depositors via weekly drawings with prizes that range from $10 to $10 million. The company provides free FDIC-insured bank savings accounts and customers get a ticket for every $25 saved each week. Every Monday, users pick 7 numbers for each of their tickets and if they don’t, tickets will be auto-picked randomly.

When Yotta launched in July, it had 700 accounts in its beta mode. Two months later, that has grown to 21,000 accounts and more than $40 million in deposits.

“The lottery is literally the worst gamble you can make. I thought this would be a way to solve the problem of saving while also scratching the lottery itch without the likelihood of a loss. In short, to bring more instant gratification to long-term behavior.” – Yotta’s cofounder and CEO Adam Moelis.

“We think the power of random rewards is underrated in the U.S. as a way to drive significant behavior change, and we were ideating on when that would get properly applied to financial services. Yotta is focused on putting money back into Americans’ pockets by harnessing the power of the lottery to increase the financial health of the average American consumer.” – Will Quist, partner at Slow Ventures.