Honeycomb Credit, a bank replacement Funding Portal that provides access to debt capital for private firms, has acquired Raise Green.
Raise Green has sold certain assets to Honeycomb, not including its funding portal license. The terms of the deal were not disclosed.
Raise Green was tightly affiliated with Connecticut Green Bank, where it issued Green Liberty Notes, which are securities that funded renewable/impact projects. The securities were issued under the Reg CF exemption which allows funding of up to $5 million.
To date, Honeycomb Credit reports that it has facilitated over $32 million in funding to more than 400 smaller firms.
Raise Green noted that new features will now be available for their investors, including expanded investment opportunities.
Raise Green stated on its website that its new owner is committed to continuing their legacy of climate-focused investments.
The two companies stated:
“Together, [they] aim to democratize impact investing by offering expanded opportunities to make meaningful investments. Whether interested in supporting a small local business or a clean energy initiative, investors can find an accessible and streamlined experience that aligns with their values.”
As a smaller Funding Portal, Raise Green may have struggled to turn the corner on profitability. While Honeycomb is a smaller platform, its lending feature has experienced growth due to challenges with smaller firms accessing debt capital from traditional firms like banks.
Some industry insiders predict more consolidation in the Funding Portal sector as there are many approved platforms but the sector of online capital formation continues to be dominated by a handful of businesses.