Honeycomb Credit score Completes $ 1.75M Seed Spherical to Develop Group Capital Mannequin Nationwide | Standing
PITTSBURGH, March 16, 2021 / PRNewswire / – Honeycomb Credit, a unique crowdfunding platform for credit, expands upon completion of a $ 1.75 million Seed funding round.
The Pittsburgh-based company has connected entrepreneurs with more than $ 3.5 million Crowdfunding in expansion loans from thousands of locally oriented investors. This model of community-funded lending, operated under the Crowdfunding Regulation, is a new alternative to small business funding and has prevailed during the COVID-19 pandemic.
“”While local businesses worked on the spur of the moment to adapt their business models to the pandemic, the funding they needed simply wasn’t in place‘It is not available through traditional sources of credit as banks and online lenders have pulled out, “said the CEO George Cook, a sixth generation community banker who co-founded Honeycomb. “”We offer these companies the opportunity to get in touch with community members who care deeply about the success of local businesses and who should be ensured through their investments. “
honeycomb‘The most recent round of funding was from the American Family Insurance Institute for Corporate and Social Impact, a venture capital company under the umbrella of the Madison, Wisconsin-based American family insurance group.
“”At the institute, we aim to support the best entrepreneurs across the country who are building scalable, sustainable businesses to fill long-term equity gaps in America, “he said Rob Kornblum, Fund Portfolio Manager at the American Family Insurance Institute. “”Honeycomb is creating real change in these communities by providing growth capital to underfunded small business owners, especially underserved entrepreneurs who have historically faced barriers to accessing traditional capital. “
Since its inception in 2017, Honeycomb has run more than 100 crowdfunding campaigns for investments in 18 states. In addition, more than 57% of the companies in Honeycomb‘s campaigns include women or minorities and 55% were in low to middle income communities.
“The COVID-19 pandemic has put the challenges of Main Street America at the center,” he said Ken Martin, Co-founder of Honeycomb Credit. “This round of funding will allow the team to accelerate efforts to partner with mutual funds and financial institutions to deploy community-oriented capital nationwide.”
In addition to the American Family Insurance Institute, Innovation Works, K50 Ventures (formerly Kairos) and The Urban Redevelopment Authority of Pittsburgh, Reinforced Ventures and Flight.vc.
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SOURCE Honeycomb Credit