Honeycomb Credit, a top FINRA regulated Funding Portal, has raised $6 million in Seed + funding, according to a note from the platform.
Honeycomb Credit is a bank replacement platform that provides loans to smaller businesses. The company leverages the Reg CF securities exemption, which allows firms to raise up to $5 million. Anyone may invest in these loans. While based in Pittsburgh, Honeycomb Credit has built a business that serves smaller firms and investors around the USA.
The funding round was co-led by SustainVC, Muditā Venture Partners, and the American Family Insurance Institute for Corporate and Social Impact.
The company said that the new money will be utilized to boost their mobile experience for in-store investing and expand their reach to support even more small businesses nationwide.
Since 2018, Honeycomb reports that it has helped more than 400 businesses across 38 states raise nearly $30 million. The funding platform supports underserved communities.
Earlier this year, Honeycomb Credit founder and CEO George Cook explained to CI that community banks have been consolidating, and underwriting decisions have moved from across the street to across the country. Cook said that many larger banks have effectively forgotten how to lend to small businesses.
“Watching this trend, my co-founders and I started Honeycomb to try to bring a tech-enabled, scalable relationship lending model to the market. Honeycomb’s community capital platform allows anyone to lend to independently-owned small businesses, with the potential to earn competitive returns while supporting entrepreneurs and communities that are important to you.”