A Pittsburgh-based startup that helps people invest in local small businesses is pursuing its next round of funding.
Fintech company Honeycomb Credit is actively raising up to $3 million, according to a Form D filing with the US Securities and Exchange Commission (SEC) last week. The company has already secured more than $760,000 toward that goal, which the filing shows it received in late March. Honeycomb has not disclosed its current valuation.
The total offering amount listed indicates an intent to raise $3 million, though the round is still in progress and not yet fully raised. Cofounder and CEO George Cook declined to share additional details at this time.
The ongoing raise brings Honeycomb Credit’s total funding to over $19 million, marking another milestone for the Pittsburgh fintech startup.
The crowdfunding platform has steadily built momentum, with some of the biggest quarterly raises in Pittsburgh in recent years.. In June 2024, the company raised $6 million, following an $8.8 million round in December 2023 and $7 million in December 2022, according to prior reporting from Technical.ly.
Founded in 2017, Honeycomb provides a crowdfunding platform that allows everyday investors to support local businesses nationwide through debt-based financing.
To date, the company has helped fund over 400 businesses nationally, including 90 in the Pittsburgh region. For example, it’s helped sustainability startup Ecotone Renewables raise over $80,000 and healthtech company Korion Health raise over $105,000.
A firm files Form Ds when it’s raising money from private investors under an exemption from SEC registration requirements. Honeycomb Credit did not disclose investors in this latest round, as it’s not required to do so.
Honeycomb helps businesses secure small, crowdfunded loans
Honeycomb was born out of firsthand frustration with the traditional lending system. During his time as a community banker, Cook saw many qualified local business owners denied loans from big commercial banks.
Around the same time, fellow cofounder Ken Martin was struggling to secure funding for his juice shop — an experience that cemented the need for a better way to finance small businesses. Together, they launched Honeycomb Credit to fill that gap, specifically focusing on investing opportunities for small businesses.
“Instead of putting in $100 and getting a t-shirt or thank you note,” cofounder Cook told Technical.ly in 2019, “someone can actually invest a hundred or a thousand dollars or more into a locally owned business, helping them grow while at the same time, earning a competitive rate on the investment.”
Small businesses have also used the platform beyond the traditional crowdfunding route, like to consolidate debt.
For example, when the owners of Iron Born Pizza in the Strip District and Millvale found themselves in over their heads with monthly payments from merchant cash advances, they used part of their campaign funding from Honeycomb to refinance the debt, making monthly payments more manageable and expansion possible.
Honeycomb has also helped Pittsburgh’s food scene grapple with inflation.
North Side-based vegetarian restaurant EYV Hospitality opened in December 2022, coinciding with a 3% increase in pricing across the board on produce. Items such as napkins, chemicals and paper products also came with heftier price tags. Honeycomb users helped the restaurant open during that time with a campaign that raised over $47,000.
Honeycomb’s efforts have won it national attention and awards like the Pittsburgh Tech Council’s 2019 Innovator of the Year in Fintech.
Honeycomb Credit
Source: bing.com
