Honeycomb

Summary

Honeycomb Credit is an SEC-registered Title III funding portal, offering investments under Reg CF, also known as Regulation Crowdfunding. They have facilitated 2 offerings to date as of this writing. Reg CF investments are open to all investors, including non-accredited investors, and typically feature very low minimum investments.

  • Website: https://www.honeycombcredit.com/
  • Investment Types: Startups/Business Financing
  • Security Types: Debt
  • Sectors:
  • Minimum Investment: 100
  • Advertised Returns: 8-8.25%
  • Open to all investors
  • Company Description: Honeycomb allows local businesses to borrow loans of up to $50,000 directly from their own loyal customers for business expansion projects.
  • Website: https://www.honeycombcredit.com/

Honeycomb logo

Overview

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.

Honeycomb fee structure

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%.

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).