Honeycomb is a Pittsburgh-based Reg CF Title III Funding Portal, registered in June 2017. Their initial offerings are both food & beverage companies looking for debt financing.
How does Honeycomb make money?
There is no fee to register and review investments. Honeycomb does charge a transaction fee to make investments, as a percentage of the amount invested (but not greater than $10). As with most Reg CF Title III Funding Portals, Honeycomb charges issuers a percentage of amount raised (2% for the two offerings listed to date).
Potential returns and cashflow
Offerings on Honeycomb typically included quarterly payments to investors, with interest rates on offerings to date between 8 and 8.25%.
Breadth of offerings on Honeycomb
There are two offerings available as of this writing. You can view more details about Honeycomb and available offerings from our partner site, Crowdfilings.com.
Regulatory framework and due diligence expectations
Honeycomb is an SEC registered Title III Funding Portal, which means they are subject to a range of rules and obligations around investor education and due diligence. All companies offering investments on Honeycomb will have been a minimum of background checks of key officers and owners. Prospective investors also have access to online forums to talk with other investors, and an online channel for asking questions of the company raising funds (and viewing answers of prior questions from others).