Friendly Fire Secures $4.7M in Series A Funding from AYMO Ventures
Friendly Fire has successfully wrapped up a Series A funding round with AYMO Ventures, a venture firm based in Zagreb, marking the Croatian gaming café franchisor’s first known institutional investor as it gears up to expand its franchise offerings in the United States.
The funding round raised approximately $4.7 million USD, as stated in the company’s announcement. A report from the day before indicated that AYMO invested €4 million EUR, which translates to about $4.67 million based on the European Central Bank’s reference rate from August 26. This suggests that the funding was raised in euros but presented in dollars to appeal to potential American franchise buyers.
According to the announcement, the funds are intended to bolster ongoing operations and enhance the company’s technology platform. A Croatian report elaborated on this, mentioning that the investment will also facilitate international expansion and support for franchise partners. However, details regarding the company’s valuation, AYMO’s stake, or any other investors involved remain undisclosed.
David Kosir, founder and CEO of Friendly Fire, expressed confidence in the company’s model, stating, “That’s why we can be so confident today about what works, and why we can guarantee success to franchisees who stick to our standard. With this investment and with a partner like AYMO Ventures, we now have real wind at our backs and everything we need to deliver on our vision and become the largest gaming café chain in the world.”
The statement from AYMO Ventures emphasized the importance of operational expertise and technology in transforming a good gaming café into a robust network that strengthens with each new location. It highlighted that the team has successfully proven the business model at its own venues before offering it to others.
AYMO recently achieved a €52 million ($60.7 million) first close across two funds and is recognized by the European Commission as a financial intermediary providing EU-backed financing. Its growth fund typically invests between €300,000 and €5 million, placing this deal at the higher end of that range. The firm is described as sector-agnostic, with exceptions for activities restricted under applicable guidelines, and its portfolio primarily consists of software and AI companies, with no focus on physical retail or hospitality chains.
Despite its ambitious plans, Friendly Fire is still a relatively small entity. The Zagreb-based company, which operates its own locations, is fully owned by Friendly Fire, Inc., a Delaware corporation. According to the Croatian Financial Agency, it is classified as a micro enterprise, primarily engaged in leasing computers and office equipment rather than hospitality. In 2025, it reported total revenue of €998,427 EUR ($1.17 million USD) with four employees, an increase from €751,690 ($877,000) with two employees in 2024, and €359,391 ($419,000) in 2023.
The net profit for 2025 was €136,990 ($160,000). In 2024, the company nearly broke even, earning just €210 ($245) on its revenue, while 2023 was its most profitable year, with earnings of €181,072 ($211,000) on a third of the following year’s revenue. These figures reflect only the Croatian operations and do not account for the Delaware parent company, where franchise fees and royalties from other markets would be recorded. Overall, the Croatian entity has not generated cash at the scale needed for the ambitious rollout being proposed.
The operational figures mentioned in the announcement are based on the company’s own reporting and have not been independently verified.
Friendly Fire claims to operate 22 locations, both company-owned and franchised, across six countries, with over 220,000 gamers on its platform and more than 1,000 amateur tournaments hosted. The company also mentioned a pipeline of 31 signed franchise agreements, representing 178 additional locations across 11 countries. However, the announcement does not specify which six countries are currently involved, and the company’s own website lists lower figures—20 locations, five countries, and over 150,000 players.
This pipeline figure is smaller than what the company had previously reported. In January, it stated that over 200 franchises were in various stages of development across the UK, Austria, Belgium, Luxembourg, the Netherlands, Poland, and Spain. The same numbers were reiterated in June when the company was recognized as Croatia’s Franchise of the Year. Now, just two months later, the forward-looking number has dropped to 178.
The count of open locations has proven more challenging to increase. Kosir mentioned in December that there were 21 locations open, with plans for openings in Spain and Poland in early 2026, and the UK later that year. He anticipated a significant increase in openings during the latter half of 2026. Franchise Times reported 22 locations open as of January 23, and the latest announcement maintains that count.
The most significant commitment to the pipeline was made 15 months ago when Friendly Fire signed a 100-unit master franchise deal with a group experienced in running Domino’s Pizza outlets, covering the UK, Spain, Poland, and Ukraine, with an estimated total value of €10 million to €15 million ($11.7 million to $17.5 million). The rollout was set to begin in Warsaw, where locations had already been selected. However, the company’s current locations page lists venues in Austria, Croatia, Slovenia, Bosnia and Herzegovina, Cyprus, the Netherlands, and the United States—none of which are part of the master agreement, and Mexico, previously mentioned as an operating country, is also absent.
It’s important to note that the new funding is intended for franchisor infrastructure rather than store capital. Friendly Fire’s franchise model estimates the cost of opening a location to be between $218,400 and $390,685, which includes a $49,500 franchise fee. Based on these figures, developing the 178 locations in the pipeline would require between approximately $39 million and $70 million—funds that would come from franchisees, not this funding round. The investment will provide the necessary support that franchisees will pay for.
The model Friendly Fire is pursuing has faced challenges in recent years. Kappa Bar acquired Meltdown Bars in March 2022 to create a franchised esports bar chain, but the French company behind Meltdown ceased payments and entered judicial liquidation in 2023. In the U.S., Belong Gaming Arenas shut down its operations in July 2023, laying off most of its staff. More recently, youth esports operators Valhallan and XP League merged instead of expanding independently.
Friendly Fire’s U.S. expansion targets Florida and Texas, the same states mentioned in January, and is being pursued through the same partner that holds its Canadian master franchise. Kosir indicated that the brand will only work with multi-unit operators in the U.S. and is also exploring markets like Boston, with the first American location expected to open in the fourth quarter of 2026. No locations have opened yet.
Entering the franchise market in those states means Friendly Fire must comply with the FTC’s Franchise Rule, which mandates that franchisors provide prospective buyers with a disclosure document at least 14 days before any agreement is signed or payment is made. The rule also restricts claims about a franchise’s financial performance unless they are substantiated and included in the disclosure document. Claims must specify a level or range of sales, income, or profits, meaning a general guarantee of success without specific figures does not meet the criteria. It remains unclear whether Friendly Fire has prepared a disclosure document.
Reports indicate that Friendly Fire plans to open three locations simultaneously on September 4—its first in Limassol, Cyprus, its first in Rijeka, Croatia, and a third in Vienna. The company will also represent Croatia at the European Franchise Awards in Brussels on September 17, where it is nominated for International Brand of the Year.
Key details such as the company’s valuation, AYMO’s stake, the participation of other investors, the status of the 100-unit master agreement, the Benelux agreement for at least 25 locations, the current status of the Mexico location, and the involvement of retired professional player Luka “Perkz” Perković remain undisclosed.
Friendly Fire has achieved what few gaming café operators have managed: running a profitable model in its home market and expanding internationally. The critical question now is whether €4 million in franchisor infrastructure can effectively convert 31 signed agreements into 178 operational stores, especially given that the pipeline was larger just two months ago and the number of open locations has remained stagnant since January.
