Mode Mobile emerged with a revolutionary concept: if companies benefit from your smartphone usage, you deserve to share in that value. Their innovative EarnPhone technology enables users to earn up to $1,200 annually through everyday activities like listening to music, reading news, and even simply charging their device.
The Challenge: Beyond Traditional Capital Raising
Despite having successfully raised over $40 million from angel investors and venture capital firms in previous rounds, Dan Novaes, co-founder and CEO of Mode Mobile, recognized an opportunity to approach capital formation differently this time.
Dan envisioned a capital raise that would serve multiple purposes:
To achieve these objectives, Dan needed a capital raising solution that would give Mode Mobile complete control over their investor experience. After six months of vetting solution providers and an entire year of due diligence, Mode Mobile selected DealMaker to power their online capital raise.
"When you're raising money, nobody wants to be first—but people also don't want to be last. Once people were in our funnel or became investors, we kept up constant communication, but at a more human level. Every email had my name on it. People built a relationship with me as well. When people are making these investment decisions, putting thousands of dollars into a company, they want to believe in more than just the product. They want to believe in the journey, the founder, the whole vision."
— Dan Novaes, CEO and Co-Founder, Mode Mobile
Why They Chose DealMaker
According to Dan, there were five main reasons he went with us:
"We have this new idea, this new technology and category of device, and we wanted to educate people on it. So we picked the channels in which we felt we could go after those consumers. That’s what attracted us to crowdfunding in the first place."
— Dan Novaes, CEO and Co-Founder, Mode Mobile
Innovative Investment Structure
DealMaker's flexibility enabled Mode Mobile to implement a sophisticated bonus structure that rewarded larger investments with additional shares. This tiered approach helped drive higher average investment amounts and accelerate the capital raise.
The customized investment tiers included:
- $2,500 investment: 40% bonus shares
- $5,000 investment: 60% bonus shares
- $10,000 investment: 100% bonus shares
- $25,000 investment: 160% bonus shares
This strategic structure incentivized investors to increase their commitment level while maintaining compliance with regulatory requirements.
The Results: $5 Million Raised in 5 Months
Mode Mobile's first online capital raise was a significant success, achieving their maximum Regulation CF goal of $5 million in just over five months. The campaign's effectiveness stemmed from a combination of strategic factors:
Looking Ahead: The Million-Shareholder Mission
Following their successful Regulation CF raise, Mode Mobile isn't slowing down. The team is already preparing for their next phase of capital formation under Regulation A+, which will allow them to raise up to $75 million from both accredited and non-accredited investors.
"I don't see the CF as 'one and done.' I see this as making an investment into multiple rounds of this—so I can basically build the first company with a million shareholders. We see this as an investment in the future. One of the biggest trends we're going to see over the course of the next two to three years is the development of brand community. Community means building value amongst every single participant in a network and thinking beyond just the raise. In the long term, how do you provide a deal that's so good that people genuinely love your company and get value out of it? If you're successful on top of all that, that's an incredible bonus."
— Dan Novaes, CEO and Co-Founder, Mode Mobile