Neato Raises $25 Million to Expand 2P eCommerce Platform Across Global Marketplaces

LAS VEGAS--(BUSINESS WIRE)--Neato, a 2P eCommerce accelerator that partners with consumer brands as their exclusive online retailer, today announced it has raised $25 million in growth capital led by Advantage Capital, positioning the company to expand its online retail partnership model. The investment will support the launch of two new operations centers in Las Vegas and Chicago with integrated eCommerce prep capabilities, expansion of their AI agent stack and accelerate Neato’s expansion beyond Amazon.

The raise comes amid a wave of institutional investment flowing into the commerce enablement sector, as investors increasingly back operators that help brands scale across fragmented online marketplaces.

The surge reflects a broader shift in capital in the e-commerce ecosystem. Rather than acquiring brands outright, a new generation of operators is building businesses by partnering with brands and managing their marketplace operations end-to-end.

Founded in 2018 as a wholesale distributor, the Las Vegas-based company evolved after its leadership saw firsthand how brands struggled to manage their Amazon presence and maintain control over pricing, content, and distribution. Founder and CEO Anthony Connelly along with his co-founder Spencer Jacobs, built a model that gives brands the familiar retail experience they expect from traditional distribution, with full-stack agency services, advertising, creative, brand protection, and data analytics, all included at no additional cost.

The company manages a portfolio of large CPG brands across pet, hard goods, grocery, beauty, supplements, and personal care. Neato primarily works with upper-middle-market to pre-enterprise brands, a segment the company believes is chronically underserved by larger marketing agencies managing hundreds of accounts that run stale playbooks where marketplaces are an afterthought.

“Most brands at our scale have two bad options — hand your business to a massive operator where you’re one of hundreds, or try to figure out Amazon yourself with a patchwork of internal hires, agencies and consultants. We built a third option. We buy the inventory, manage everything from advertising to logistics to brand protection, and run a portfolio that every brand gets a team that wakes up thinking about their business every day. There’s real capital flowing into this category because the model works. This investment lets us take it beyond Amazon into every channel where our brands’ customers are shopping,” said Anthony Connelly.

“The e-commerce enablement sector is at an inflection point,” said Philip Ruppel, Principal at Advantage Capital. “Capital is flowing toward operators that align their economics with brand success rather than extracting fees from complexity. Neato’s 2P model, combined with their expansion beyond Amazon into other channels, positions them at the center of where marketplace commerce is heading.”

About Neato

Neato is a 2P ecommerce operator built to remove complexity and bring certainty to online growth. Founded in 2018, Neato pioneered second-party commerce, starting in 2020. Neato buys inventory directly from brands and manages the full lifecycle of selling it online, from listings and creative to advertising, logistics, and reporting. Unlike agencies, Neato does not sell standalone services; its model is predicated on purchasing product and owning execution. For more information, please visit: www.neato.com.

About Advantage Capital

Advantage Capital Investment Adviser, LLC (“ACIA”), a wholly owned subsidiary of Advantage Capital Management Corporation (“Advantage Capital”), is an investment adviser registered under the Investment Advisers Act of 1940. Registration with the SEC does not imply a certain level of skill or training. This release has been prepared for informational purposes and to announce a prior event, and nothing herein should be construed as investment advice, an offer of investment advisory services or as an offer to sell or a solicitation of an offer to purchase any securities or investment product. Any offer to sell or solicitation of an offer to purchase any security or investment product will be made in compliance with applicable state and federal securities laws pursuant to a definitive confidential offering memorandum and/or similar documentation. Advantage Capital is an equal opportunity provider.