Honeycomb Credit is a FINRA-regulated funding portal and bank-replacement platform that provides loans to smaller businesses by leveraging the Reg CF securities exemption. The platform allows anyone to invest in those loans and supports underserved communities. Based in Pittsburgh, Honeycomb serves small firms and investors around the U.S. Since 2018 the company says it has helped more than 400 businesses across 38 states raise nearly $30 million. Honeycomb’s team cites consolidation of community banks as a driver for its tech-enabled, scalable relationship-lending model. The company plans to use new funding to boost its mobile experience for in-store investing and to expand its reach to support more small businesses nationwide. Honeycomb Credit operates a Regulation Crowdfunding (Reg CF) platform that lets community members lend directly to small businesses by issuing securities under Reg CF. Investors may participate for as little as $100, and the platform positions itself as a bank-replacement marketplace to fill gaps left by declining community banks. Since its founding in 2017 and based in Pittsburgh, Honeycomb has run more than 100 investment crowdfunding campaigns across 18 states and reports that over 80% of businesses that crowdfunded through the platform have reached their funding goals. The platform's average loan is roughly $40,000; more than 57% of businesses in Honeycomb offerings are owned by women or minorities and 55% have been in low-to-moderate income communities. Management says the new funding will allow the company to accelerate partnerships with investment funds and financial institutions. Honeycomb frames its model as creating circular economies that build community wealth by returning loan repayments to neighbors and local supporters.

Total raised

$8M

Funding rounds

2

Latest round

Seed

Latest activity

Jun 2024