Honeycomb Credit, a FINRA-regulated Funding Portal, raised equity capital at the end of 2023.
According to the Form D filed with the Securities and Exchange Commission, Honeycomb sold $8.844 million in shares of the firm.
Of note, Honeycomb raised new money in the amount of $3.265 million, with $5.6 million of convertible securities being converted into equity.
In 2022, Honeycomb completed a similar offering, raising new money in the amount of $1.7 million with $5.6 million of a convertible changed into equity.
By using a convertible securities, a firm can postpone a priced round. Convertibles tend to be popular with professional investors like VCs.
The funding round was discussed by Honeycomb CEO and founder George Cook at the recent meeting of the SEC Small Business Capital Formation Advisory Committee (SBCFAC) meeting. During the meeting, Cook noted that they recently completed a funding round while sharing that if the definition of an Accredited Investor had been indexed for inflation, the results would have been much different or “catastrophic.”
Honeycomb is an online investment platform that enables smaller firms to raise debt capital from individual investors. Similar to a bank, Honeycomb allows private companies to raise up to $5 million as a loan backed by individual investors. Honeycomb has emerged as one of the top Reg CF filers in the Funding Portal sector.
