HoneyComb, which connects growing small businesses with local investors to build vibrant, financially empowered Main Streets, is reporting $23.2M+ invested in local businesses. There have been a total of around 23,000 different investments to date, 426 loan offerings at the time of writing, along with 75% of offerings being funded. The FINRA-regulated Funding Portal enables firms to raise money under Reg CF (Regulation Crowdfunding). This securities exemption allows issuers to raise up to $5 million.
Notably, HoneyComb Credit is also reporting around $5.5 million already repaid to local investors.
Honeycomb reported recently that its investor community is now 16,000 investors strong.
While some investors come to Honeycomb to invest in just one “beloved” local business, 21% of Honeycomb investors have reportedly “invested in more than one investment offering.”
In their recent analysis of investment behavior, Honeycomb Credit claims that they “observed a notable trend: with each successive investment, there’s an average 11% increase in the distance between an investor’s ZIP code and that of the business they’re investing in.”
As time goes on, some members of the Honeycomb investor community are “not just investing in small businesses in their town or state, but rather they are investing in local businesses across the country.”
In 2023, everyday investors have “made 6,005 investments in local businesses.”
Honeycomb says it is focused on “building vibrant, financially empowered communities.”
They are where traditional banks are not. Honeycomb further claims that it is “getting money flowing to businesses that are often overlooked by traditional lenders.”
This year, 80% of the businesses that they’ve worked with “have been women-owned, minority-owned, or based in low-to-moderate income communities.”
Foundations are investing, as well, the company reveals.
This year, Honeycomb reportedly became “the first platform where large-impact investors have committed to invest in businesses alongside community members.”
Investments from their Matching Funds Partners are “accelerating the growth of local businesses and economies.”
For example, The Jessie Ball Dupont Fund, “located in Jacksonville, has invested $115,000 across 7 businesses.”
As noted by its management, Honeycomb Credit is sharply focused on supporting innovative small businesses.
Honeycomb Credit gives business owners “the funding they need to keep growing, and everyone the chance to invest in local businesses they love.”