Honeycomb Credit, an investment platform, has secured $6M (Seed+), to democratize funding for small businesses. SustainVC is leading the new capital that targets mobile app improvements and national expansion. This will promote economic equity by investing in communities.
PITTSBURGH PA, 18 JUNE 2024 – Honeycomb Credit is a small business investing platform. Today, SustainVC, Mudita Venture Partners and the American Family Insurance Institute of Corporate and Social Impact announced a $6 MILLION Seed+ funding round. Other investors in the round included DRK Foundation. Symphonic Capital. Innovation Works. Trog Hawley Capital.
Honeycomb, launched in 2018, democratizes small business lending. It allows entrepreneurs to borrow directly through their customers, fans and communities. The platform allows anyone to invest as little $100 in their favorite local business, keeping capital within the community while offering attractive market-rate returns. This innovative approach unlocks fair funding for Main Street businesses that are often overlooked by traditional lending institutions.
Honeycomb was founded by George Cook. A sixth-generation community banking professional, Cook was alarmed at the negative impact of consolidation on local businesses’ ability to obtain funding. Cook says that small businesses are at the heart of the American economy. Their ability to access affordable capital for growth has steadily declined over the past fifteen years. Honeycomb was created to level the playing fields by providing resources to small businesses and giving everyone the chance to invest in the communities they love.
Despite a thriving small business sector the number of SBA loans 7(a) has dropped by almost 50% since 2006, but the average loan amount has tripled. This indicates that banks are only lending money to the largest companies. Honeycomb bridges the funding gap by tapping community support. The platform has so far facilitated funding of nearly $30 million for 400 businesses in 38 states. 85% of the funding went to veteran, woman, BIPOC and low-to moderate-income (LMI) owned businesses. Eric Chapman is Managing Principal of SustainVC. He said that Honeycomb is pioneering an innovative model of community capital formation, which aligns incentives between small businesses and their loyal supporters. “We are excited to support their vision of creating a financial system that is inclusive and equitably distributes opportunities for economic growth.”
Honeycomb will use the new capital to launch a mobile app that allows seamless in-store investments, and continue their expansion to service more small businesses across the United States. This funding round will also allow Honeycomb define and scale a new high-yielding, high impact asset class that allows everyone, from retail investors, foundations, CDFIs, to institutional investors, to confidently deploy capital in Main Street communities, driving returns while strengthening communities.
Honeycomb’s Seed+ round was oversubscribed. It follows a $2 Million Seed Round led in 2022 by the American Family Insurance Institute.
For more information, visit www.honeycombcredit.com.
Media Contact:
Madeline Farina
madeline@honeycombcredit.com
(412) 427-9705
Honeycomb Credit
Honeycomb Credit is a community investment platform that empowers small businesses to gain access to fair growth capital. Honeycomb Credit democratizes lending to small businesses by allowing customers, community members and impact investors to lend direct. This allows supporters to share in the success of entrepreneurs. Honeycomb’s mission is to create a financial system that distributes opportunity more equitably among communities.
SustainVC
SustainVC, a venture capital company, believes that business can be used to do good. SustainVC has partnered with innovative entrepreneurs who share a vision for a sustainable, equitable, and healthy world. The funds’ goal is to return measurable social and financial returns as well as a measurable environmental impact. The SustainVC Portfolio includes nearly 50 high impact, high growth companies in the areas “Climate & Sustainability”, “Access and Opportunity” and “Access and Opportunity”. To learn more please visit: SustainVC.com
American Family Institute for Corporate and Social Impact
The American Family Insurance Institute for Corporate and Social Impact (AFI) is a venture-capital firm and a partner of choice for exceptional business owners who are building scalable and sustainable businesses to help close equity gaps. It also recognizes the importance of building capacity and supporting organizations that have been working on social causes.
Mudita Venture Partners
Mudita Venture Partners, an early-stage Venture Fund focuses on investing in software companies for business-to-business that are pre-growth and post-revenue. The partners have decades of experience in entrepreneurship and operations to help accelerate growth while mitigating risk. The Fund only invests in companies that it believes will have a positive effect on the world, and generate economic returns.
Contact Information:
Name: Madeline Farina
Email: Send email
Honeycomb Credit
Address: 254 Edmond Street
Phone: 4124279705
Website: https://honeycombcredit.com
Video URL: https://www.youtube.com/watch?v=N_SCbLEYXBY
Release ID: 89133941
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