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Honeycomb Credit Secures $6 Million Seed+ Funding Round To Conclude The Increasing Funding Hole For Minute Businesses

Funding platform Honeycomb Credit secures $6M (Seed+) to democratize microscopic business funding. Unique capital, led by SustainVC, targets mobile app enchancment and national growth, promoting economic equity through neighborhood funding.

PITTSBURGH, PA, June 18, 2024 – Honeycomb Credit, a microscopic business funding platform, right this moment announced a $6 million Seed+ funding spherical co-led by SustainVC, Muditā Venture Partners, and the American Family Insurance protection Institute for Company and Social Impact. Assorted investors taking part in the spherical embrace DRK Basis, Symphonic Capital, Innovation Works, Trog Hawley Capital, and additional.

Honeycomb, which launched in 2018,  is democratizing microscopic business lending by allowing entrepreneurs to borrow straight from their very trust customers, followers, and communities. The platform offers an avenue for any individual to speculate as little as $100 of their favourite local corporations, keeping capital inner communities while offering the aptitude for supreme-looking, market-price returns. This innovative design unlocks resplendent financing for Critical Avenue enterprises usually no longer famed by earlier skool lenders.

Honeycomb modified into as soon as co-based by George Cook, a sixth-technology neighborhood banker, who modified into as soon as nervous by how consolidation in the banking industry modified into as soon as negatively impacting domestically-owned corporations’ skill to precise funding. “Minute corporations are the heartbeat of the American economic system,” says Cook. “Their skill to derive entry to inexpensive hiss capital has been step by step declining all the design in which throughout the final 15 years.  We started Honeycomb to stage the playing enviornment by getting resources to cherished microscopic corporations while giving everyone the different to speculate in communities they devour.”

Despite a brilliant microscopic business sector, the amount of SBA 7(a) loans has dropped by nearly 50% since its 2006 peak, while the moderate mortgage dimension has bigger than tripled – signaling banks are most life like likely lending to the largest corporations. Honeycomb bridges this financing gap by tapping into neighborhood toughen. Up to now, the platform has facilitated nearly $30 million in funding for over 400 corporations across 38 states, with 85% going to mature, females, BIPOC, and low-to-moderate income (LMI) owned enterprises.  “Honeycomb is pioneering a brand glossy model of neighborhood capital formation that aligns incentives between microscopic business owners and their loyal supporters,” said Eric Chapman, Managing Foremost at SustainVC. “We’re excited to abet their imaginative and prescient of putting in place an inclusive financial system that equitably distributes economic different.”

The glossy capital will enable Honeycomb to delivery a mobile experience allowing seamless in-retailer investing, while continuing their growth to attend extra microscopic corporations from across the United States. Additional, this funding spherical will enable Honeycomb to give an explanation for and scale their glossy, excessive-yield, excessive-impact asset class where everyone – from retail investors to foundations to CDFIs to institutional investors – can confidently deploy capital into Critical Avenue communities; driving returns, while strengthening communities.

Honeycomb’s oversubscribed Seed+ spherical follows a $2 million Seed Round led by the American Family Insurance protection Institute in 2022. 

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Media Contact:

Madeline Farina
[email protected] 
(412) 427-9705

About Honeycomb Credit

Honeycomb Credit is the neighborhood funding platform empowering microscopic corporations to derive entry to resplendent hiss capital. By allowing loyal customers, neighborhood contributors, and impact investors to lend straight, Honeycomb democratizes microscopic business lending while enabling supporters to part in entrepreneurs’ success. Honeycomb’s imaginative and prescient is to assemble an inclusive financial system distributing different extra equitably across communities. 

About SustainVC

SustainVC is a project capital agency that believes business will be a force for appropriate. Since 2007, SustainVC’s impact funding funds trust partnered with modern entrepreneurs that part a imaginative and prescient of a sustainable, extra equitable, and additional healthy world – with the aim of returning measurable social and environmental impact as smartly as market price financial returns. The SustainVC portfolio entails nearly 50 excessive-impact, excessive-hiss corporations in the areas of “Local weather & Sustainability” and “Access and Different.” To learn extra, please streak to:

About American Family Institute for Company and Social Impact

The American Family Insurance protection Institute for Company and Social Impact is a project capital agency and associate of preference for distinctive entrepreneurs who’re building scalable, sustainable corporations in a long-time frame effort to shut equity gaps in The United States. It also acknowledges that skill building and supporting organizations and specialists who had been working toward social causes are equally crucial in making a obvious impact inner our communities across the country.

About Muditā Venture Partners 

Muditā Venture Partners is an early-stage Venture Fund, primarily investing in business-to-business utility corporations that are submit-income and pre-hiss-spurt. The partners lift a few years of entrepreneurial and operational experience to abet poke hiss and mitigate menace. The Fund most life like likely makes investments in corporations it believes may perchance even trust a obvious impact on the sector and pressure economic returns.

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