February 26, 2024

Case Study: How Mode Mobile Filled a $5M Raise

Transforming the Smartphone Economy

In today's digital landscape, consumer data has become an invaluable asset. Our smartphones generate vast amounts of data with every tap, swipe, and interaction—data that powers a multi-billion dollar industry where companies profit from our usage patterns and behaviors.

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.

Mode Mobile's capital raise platform powered by DealMaker

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 dual purposes:

Securing growth capital

Obtaining the necessary funding to scale their technology and market reach

Creating a customer acquisition channel

Converting investors into product users and brand advocates

Building brand community

Developing a loyal community of shareholders invested in the company's success

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.

Testimonial Module

"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

Co-founder and CEO, Mode Mobile

Quote Module

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, Co-founder and CEO of Mode Mobile

Why They Chose DealMaker

According to Dan, there were five main reasons he went with us:

Track record

Dan sought out the platform that had powered the biggest offerings in the industry.

DealMaker Marketing Services

He knew that our Marketing Services are a top marketing agency for crowdfunding campaigns, and says the team helped him move faster and eliminate false starts.

Customizability

Dan wanted to offer custom share structures to different users (more on that later). He says other platforms were interested in trying, but "the scope was chaos." DealMaker was able to scope and deliver this feature much more easily.

Increased ROAS

An online campaign requires digital marketing—and Dan didn't want his ad spend to drive traffic to a marketplace-style platform or to share his customers. With DealMaker, every dollar he spent came back to him.

Full-funnel visibility

Dan wanted a solution that would allow him to push people through his funnel. None of the other platforms he spoke to had robust IR solutions.

Innovative Investment Structure

Mode Mobile's tiered bonus share 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

$5M

Capital Raised

Months to Completion

100%

Target Achieved

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:

Community Engagement

Mode Mobile activated their existing user base and community, converting them into investors who were already familiar with and enthusiastic about the product.

Strategic Marketing

By leveraging DealMaker Marketing Services, Mode Mobile expanded their investor outreach, gaining valuable exposure in premium publications like Morning Brew, which drove additional investment interest.

Personalized Communication

The Mode Mobile team maintained consistent, personalized communication with potential investors, building trust and credibility throughout the fundraising process.

Mode Mobile's placement in Morning Brew, facilitated by DealMaker's Marketing Services

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, Co-founder and CEO of Mode Mobile