Case Study: NeuroStreet's Multimillion-Dollar Digital Raise 

In the challenging financial landscape of early 2023, marked by the crypto winter and the collapse of Silicon Valley Bank, NeuroStreet, a fintech trading platform and educational ecosystem, successfully raised millions of dollars from accredited investors, using DealMaker technology to power their raise. This case study explores how NeuroStreet leveraged DealMaker's platform to streamline its process amidst adverse market conditions.

Company Background

NeuroStreet is a fintech company built on a combined 50+ years of trading technology expertise. It offers a comprehensive suite of services, including trading platforms, educational tools, and cutting-edge trading software. The portfolio includes TickBlaze, ARC-AI., NeuroStreet Trading Academy, and CryptoStreet Academy, each contributing to a robust ecosystem for traders and investors.

The Challenge

Like many tech companies, NeuroStreet faced a significant challenge in 2023: amid rapid growth, it needed to raise capital to fund strategic acquisitions and scale operations. The problem, of course, is that 2023 was one of the most difficult capital-raising climates in recent history, with VC deal counts plummeting to their lowest levels in nearly a decade. Traditional funding avenues were incredibly constrained, and investor confidence was shaky due to ongoing financial uncertainties.

“We had our minds set on an expansion and a vision for where we were going… We just knew we had to do it no matter what. And we knew it was challenging. We knew that every place we talked to was closing their doors. They were not lending. There weren’t checks being cut at that time.” – Sean Kozak, founder and CEO of NeuroStreet

The Solution

The NeuroStreet team decided to take matters into their own hands with a self-hosted digital raise powered by DealMaker technology. Kozak and his team opted to raise capital via Reg D 506(b) — an exemption that allows companies to raise an unlimited amount of capital from accredited investors, but does not allow general solicitation (i.e. advertising the raise). As major players in the capital markets, the NeuroStreet team had a deep Rolodex of high-value contacts they knew would be interested in their offering.

Sean Kozak highlighted the importance of investor relations, noting, "If an investor sees the progress updates, if the investor sees the milestones accomplished, even the negatives...that way, they trust you, they believe in what you’re doing. And that’s important."

Results

NeuroStreet successfully raised its Series A in just over six months—a remarkable achievement given the market conditions. The capital raised enabled the company to complete its strategic acquisition of TickBlaze, a powerful hybrid trading platform founded by Daniel Tochner—a key move Kozak says will give NeuroStreet a significant edge over competitors.

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Key Success Factors

Robust Platform Selection

Choosing DealMaker for its robust features and compliance capabilities was crucial. The platform's efficiency and ease of use allowed the NeuroStreet team to get their raise up and running in less than a week.

“Get DealMaker, everybody watching this, because it’s the best out there. Just a little plug because I’ve researched every platform in the business. It was easy. It’s fast. Their team got me up and running in seven days or less.”

Creative Financial Solutions 

NeuroStreet facilitated investment through self-directed retirement accounts in the US and Canada, making it easier for investors to commit funds without triggering taxable events.

Investor Engagement

NeuroStreet's proactive approach to engaging with its community and maintaining clear, consistent communication before, during, and after the raise played a pivotal role in its success.

“You never want to lose sight of that emotional connection with people’s money... We do a quarterly Zoom. We have in our roadmap monthly emails and quarterly Zoom calls with everybody. And it's been very well received. In fact, I've never had a negative email from an investor since we closed the raise. Never had anything but praise. Most people are just super impressed by the way we organize it. We keep it clean, keep it simple, keep it consistent, because it has to be regular. That way, they trust you. They believe in what you’re doing. And that’s important… When you keep your current investors happy, you have an asset there that's untapped.”

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Conclusion

NeuroStreet's successful capital raise during one of the most challenging periods for fintech funding demonstrates the power of strategic planning, excellent investor relations, and the effective use of technology. NeuroStreet is an inspiring example for other fintech companies facing similar challenges, showcasing how the right tools and strategies can overcome significant capital-raising obstacles.

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Video Interview with Sean Kozak