Honeycomb Credit Secures $6 Million Seed+ Funding Round To Close The Growing Funding Gap For Small Businesses

Image: https://www.getnews.info/wp-content/uploads/2024/06/1719373754.png

Investment platform Honeycomb Credit secures $6M (Seed+) to democratize small business funding. New capital, led by SustainVC, targets mobile app improvement and national expansion, promoting economic equity through community investment.
PITTSBURGH, PA - June 27, 2024 - Honeycomb Credit [https://www.honeycombcredit.com/], a small business investment platform, today announced a $6 million Seed+ funding round co-led by SustainVC, Mudita Venture Partners, and the American Family Insurance Institute for Corporate and Social Impact. Other investors participating in the round include DRK Foundation, Symphonic Capital, Innovation Works, Trog Hawley Capital, and more.

Honeycomb, which launched in 2018, is democratizing small business lending by allowing entrepreneurs to borrow directly from their own customers, fans, and communities. The platform provides an avenue for anyone to invest as little as $100 in their favorite local businesses, keeping capital within communities while offering the potential for attractive, market-rate returns. This revolutionary approach unlocks fair financing for Main Street enterprises, often overlooked by traditional lenders.

Image: https://www.getnews.info/uploads/5ebe07049870e65f66aa573a9d969542.PNG

Honeycomb was co-founded by George Cook [https://www.linkedin.com/in/george-cook-honeycomb/], a sixth-generation community banker, who was alarmed by how consolidation in the banking industry was negatively impacting locally-owned businesses' ability to secure funding. "Small businesses are the heartbeat of the American economy," says Cook. "Their ability to access affordable growth capital has been steadily declining over the past 15 years. We started Honeycomb to level the playing field by getting resources to beloved small businesses while giving everybody the opportunity to invest in communities they love."

Despite a vibrant small business sector, the number of SBA 7(a) loans has dropped by nearly 50% since its 2006 peak, while the average loan size has more than tripled - signaling banks are only lending to the largest firms. Honeycomb bridges this financing gap by tapping into community support. To date, the platform has facilitated nearly $30 million in funding for over 400 businesses across 38 states, with 85% going to veteran, women, BIPOC, and low-to-moderate income (LMI) owned enterprises. "Honeycomb is pioneering a new model of community capital formation that aligns incentives between small business owners and their loyal supporters," said Eric Chapman, Managing Principal at SustainVC. "We're excited to back their vision of creating an inclusive financial system that equitably distributes economic opportunity."

The new capital will enable Honeycomb to launch a mobile experience allowing seamless in-store investing, while continuing their expansion to serve more small businesses from across the United States. Further, this funding round will allow Honeycomb to define and scale their new, high-yield, high-impact asset class where everyone - from retail investors to foundations to CDFIs to institutional investors - can confidently deploy capital into Main Street communities; driving returns, while strengthening communities.

Honeycomb's oversubscribed Seed+ round follows a $2 million Seed Round led by the American Family Insurance Institute in 2022.

For more information, visit www.honeycombcredit.com [http://www.honeycombcredit.com/].

About Honeycomb Credit

Honeycomb Credit is the community investment platform empowering small businesses to access fair growth capital. By allowing loyal customers, community members, and impact investors to lend directly, Honeycomb democratizes small business lending while enabling supporters to share in entrepreneurs' success. Honeycomb's vision is to build an inclusive financial system distributing opportunity more equitably across communities.

About SustainVC

SustainVC is a venture capital firm that believes business can be a force for good. Since 2007, SustainVC's impact investment funds have partnered with innovative entrepreneurs that share a vision of a sustainable, more equitable, and healthier world - with the goal of returning measurable social and environmental impact as well as market rate financial returns. The SustainVC portfolio includes nearly 50 high-impact, high-growth companies in the areas of "Climate & Sustainability" and "Access and Opportunity." To learn more, please visit: SustainVC.com

About American Family Institute for Corporate and Social Impact

The American Family Insurance Institute for Corporate and Social Impact is a venture capital firm and partner of choice for exceptional entrepreneurs who are building scalable, sustainable businesses in a long-term effort to close equity gaps in America. It also recognizes that capacity building and supporting organizations and experts who have been working toward social causes are equally important in making a positive impact within our communities around the country.

About Mudita Venture Partners

Mudita Venture Partners is an early-stage Venture Fund, primarily investing in business-to-business software companies that are post-revenue and pre-growth-spurt. The partners bring decades of entrepreneurial and operational experience to help accelerate growth and mitigate risk. The Fund only makes investments in companies it believes will also have a positive impact on the world and drive economic returns.

Video URL:

https://www.youtube.com/watch?v=N_SCbLEYXBY
Media Contact
Company Name: Honeycomb Credit
Contact Person: Madeline Farina
Email: Send Email [http://www.universalpressrelease.com/?pr=honeycomb-credit-secures-6-million-seed-funding-round-to-close-the-growing-funding-gap-for-small-businesses]
Country: United States
Website: http://honeycombcredit.com



This release was published on openPR.