Local crowdfunding platform Honeycomb Credit raised just above $6 million in a seed+ funding round that co-founder and CEO George Cook said will allow the company's ongoing national expansion.
"Pittsburgh is our hometown, it's our biggest market, but we're really looking to prove out that we can roll this out across the United States," CEO George Cook said.
Honeycomb has done deals in 38 states with over 400 businesses and is licensed nationwide. Unlike other crowdfunding platforms like KickStarter and GoFundMe, Honeycomb repays investors. Cook said he hopes to "prove that this is a new asset class."
"Very few people talk about Main Street small businesses as an investable asset class," Cook said. "I believe that as a society, because we don't talk about small businesses that way, it means that we're chronically underinvesting in these incredibly impactful businesses that can make our communities really vibrant."
Cook foresees a rise in small businesses because "people are increasingly conscious about where the things that they are buying are coming from."
"Of course the convenience of shopping online is going to stay, but at the same time you have people that are being really thoughtful, really conscious about where the things they're buying are coming from and how they're sourced," Cook said. "I think that creates a lane for small businesses and what I'm excited about is how technology companies can create tools to make small businesses competitive with the really big players."
Honeycomb will also use some of the funds to roll out a mobile phone application. Currently, the platform is designed only for web.
"With the mobile application that's rolling out you can walk into the store in real time, get alerted about them raising money and immediately invest while you're waiting for your latte," Cook said.
The funding round was co-led by SustainVC, Mudita Venture Partners and the American Family Insurance Institute for Corporate and Social Impact.
