Neato Raises $25M in Growth Capital Led by Advantage Capital

The company plans to use the funds to open two new operations centers in Las Vegas and Chicago with built-in eCommerce prep, expand its AI tools, and grow beyond Amazon.

The funding comes as more investors invest in companies that help brands grow across different online marketplaces.

This shows a broader shift in e-commerce, where companies are partnering with brands rather than buying them and managing their marketplace operations from start to finish.

Originally founded as a wholesale distributor, the Las Vegas-based company changed its approach after seeing how brands struggled to manage their Amazon presence and control pricing, content, and distribution. Founder and CEO Anthony Connelly and co-founder Spencer Jacobs created a model that combines traditional retail distribution with full-service support, including advertising, creative work, brand protection, and data analytics, all at no extra cost.

The company works with a range of large consumer brands across categories like pet products, grocery, beauty, and personal care. It mainly focuses on mid-sized to growing brands, which are often overlooked by larger agencies that handle many accounts but give less attention to marketplace performance.

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“Brands at our stage usually have two poor choices—either work with a large operator where they get little attention, or try to manage Amazon themselves with a mix of hires and agencies,” said Anthony Connelly. He explained that his company offers a third option: buying inventory and handling everything from advertising and logistics to brand protection, providing each brand with dedicated support. He added that strong investor interest shows the model works, and the new funding will help expand beyond Amazon into more sales channels.

"Philip Ruppel of Advantage Capital said the e-commerce enablement sector is reaching an important turning point. He noted that investors are backing companies that succeed when brands succeed, rather than charging complex fees. He added that Neato’s approach and its expansion beyond Amazon place it in a strong position for the future of marketplace commerce."

About Neato

Founded in 2017, by Anthony Connelly and Spencer Jacobs, Neato is a second party (2P) e-commerce company that simplifies online growth for brands. Since pioneering this model in 2020, Neato has bought inventory directly from brands and managed the entire sales process, including listings, creative, advertising, logistics and reporting. Unlike traditional agencies, it does not offer separate services; instead, it takes full ownership of execution.

About Advantage Capital

Advantage Capital Investment Adviser, LLC (ACIA), a subsidiary of Advantage Capital Management Corporation, is registered with the SEC under the Investment Advisers Act of 1940. However, registration does not guarantee any specific level of skill or expertise. This information is provided for general purposes only and should not be considered investment advice or an offer to buy or sell any securities. Any such offers will be made in accordance with applicable laws through official documents. Advantage Capital is an equal opportunity provider.

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