Latest news with #KarenCahn
Technical.ly
19-05-2025
- Business
- Technical.ly
Honeycomb Credit secures nearly $6M and lands new investors
A Pittsburgh-based fintech platform is building on previous momentum, raising over $5 million after a recent acquisition. Startup Honeycomb Credit secured $5.89 million in fresh capital, according to a Form D filing with the US Securities and Exchange Commission (SEC) last week. The funding comes partially from several new social equity or environmental impact-focused investors in its funding round that started back in November 2022. 'I am happy to share that, in addition to a larger number of existing investors, the round includes several new investors,' cofounder and CEO Cook told 'including Upstart Co-Lab, Spring Point Partners and the New Community Transformation Fund.' Cook declined to comment on the size or specifics of the raise since the round is still open, but the filing shows $11.47 million has been raised since the round legally began about two and a half years ago. Of that total, $5.89 million is new capital, while $5.58 million comes from convertible securities, meaning earlier investments were converted into equity as part of this funding round rather than bringing in new cash. The new funding follows an acquisition by Honeycomb in April of fellow crowdfunding startup IFundWomen (IFW) for an undisclosed amount. The acquisition, which brought IFW founder Karen Cahn and five employees to Honeycomb, aimed to create a central online hub where even the earliest-stage businesses could access capital, coaching and community support from Honeycomb, Cook previously told Alongside the acquisition, an SEC filing in early April showed the company had raised around $760,000 toward a $3 million goal. At the time, Cook said the funds would help integrate IFW team members and support tech investments as Honeycomb expanded its services to small businesses nationwide. He said the company expected to close the round by month's end. A platform to help other startups reach their goals Founded in 2017 by Cook and cofounder Ken Martin out of firsthand frustration with the traditional lending system, Honeycomb provides a crowdfunding platform that allows everyday investors to support local businesses nationwide through debt-based financing. The crowdfunding platform has grown as a local fundraising force, with some of the biggest quarterly raises in Pittsburgh in recent years. The company has also 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. 'Instead of putting in $100 and getting a t-shirt or thank you note,' cofounder Cook told 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.'
Forbes
14-04-2025
- Business
- Forbes
Small business capital wIth coaching, and community support.
The acquisition of IFundWomen (IFW) by Honeycomb Credit, announced today, signals a transformative shift in small business financing—one that goes beyond capital to provide everything entrepreneurs need to succeed: coaching, community, and connection. At a time when traditional funding is increasingly out of reach, this merger combines two proven models that address not only access to money but also the technical support and peer networks critical for business success. Together, they are redefining what it means to fund a business—particularly for women and other underestimated entrepreneurs—by creating a more human-centered, sustainable, and empowering funding ecosystem. Honeycomb's acquisition of IFW is more than just combining two types of crowdfunding platforms—it's about creating a more complete path to funding for young and small businesses, backed by entrepreneurial support. Both companies understand that while capital is critical, it's not enough. Building a small business also takes know-how, guidance, and a community to lean on when making decisions. "The vision is to create the place on the internet where entrepreneurs come not just for the capital," explains Honeycomb's CEO and cofounder, George Cook. 'Coaching helps with technical assistance. Community is finding other entrepreneurs who have been on that journey before and not having to learn every lesson the hard way." IFW's success has been built on its emphasis on coaching, a philosophy shared by Honeycomb. Karen Cahn, founder and CEO of IFW, and board member and principal advisor at Honeycomb, explains, "Our differentiator has always been coaching. The entrepreneurs that invest in the coaching services raise exponentially more when they go to crowdfund." On IFW's Community Slack, entrepreneurs connect to bounce ideas around, share challenging moments, and cheer each other on. This combination of capital, coaching, and community is vital for entrepreneurs, as highlighted in the 2025 Wells Fargo Impact of Women-Owned Businesses* series. The research indicates that women-owned small businesses face particular challenges related to limited access to funding and a lack of access to experienced networks and mentors. The reports emphasize that capital alone is not enough—growth and sustainability also require coaching and community, especially for underestimated women entrepreneurs. Honeycomb also fosters a strong sense of community, recognizing the power of peer support. As Cook notes, "We've started to formalize some of that community already. We're thinking about how we take the best of both of these things and continue to build on them." This mirrors IFW's belief that while entrepreneurship can be lonely, community and peer connections offer essential encouragement, perspective, and resilience. IFW's brand partnerships create benefits for small businesses and established companies. It partners with brands like Visa and Caress that want to build stronger relationships with specific customer groups. Through these collaborations, entrepreneurs gain access to coaching and capital grants, while brands benefit from authentic connections with their target audiences and meaningful ways to elevate their brand. 'Thank you for the opportunity to express my gratitude for the Caress Grant and IFundWomen,' said Heather Davis, owner and pastry chef at Chic Sweets Bakery in Texas. 'If not for you, my business wouldn't be operating today.' By integrating IFW's coaching and community-building expertise with Honeycomb's funding platform, the acquisition aims to create a more supportive and effective ecosystem for young businesses and businesses seeking smaller financing than a traditional bank might lend. In today's turbulent economic climate, access to capital can be critical for small businesses to survive and thrive. With banks raising their lending criteria, it's becoming tougher for entrepreneurs to get approved. IFundWomen and Honeycomb Credit offer alternative ways to raise capital when traditional financing options may be harder to obtain. The financial climate is unpredictable and tightening—marked by rising interest rates and declining loan approval. Understanding rewards and investment crowdfunding options, like Honeycomb and IFW do, is more critical than ever. Honeycomb is a FINRA- and SEC-compliant Reg CF platform providing community investment crowdfunding, enabling businesses to raise capital from their customer base, local investors, and community members. Honeycomb's approach unlocks essential funds and cultivates a robust support network. "We didn't have to convince strangers," says Simon Huntley, CEO of Harvie and a Honeycomb borrower who raised over $480,000. "We invited our own community to invest. These are people who already believe in the independent food economy, so the alignment was there from day one. It felt less like fundraising and more like fueling the movement". Honeycomb offers mostly debt-based funding, with some revenue-sharing or equity structures available. IFW rounds out the funding landscape by offering grants and rewards-based crowdfunding. This funding continuum helps women entrepreneurs, who often face systemic barriers in accessing traditional capital. Women entrepreneurs have demonstrated a strong aptitude for crowdfunding, effectively mobilizing their communities through compelling narratives and building trust with potential backers. A majority of Honeycomb's fundraisers are women entrepreneurs. They represent nearly double (64%, according to the company) the share of all fundraisers compared to all Reg CF platforms (34%, according to Kingscrowd). As Cahn, founder and CEO of IFW, explains, "Our differentiator has always been coaching. The entrepreneurs that invest in our coaching services raise exponentially more when they go to crowdfund". The acquisition of IFW by Honeycomb Credit represents a decisive step towards creating a more accessible and effective funding ecosystem. Bringing together a diverse range of community-backed capital options for small businesses alongside robust coaching and a strong sense of community, these two companies demonstrate the significant impact of pairing financial resources with comprehensive support for entrepreneurs on a larger scale. This approach addresses the immediate need for funding and fosters small businesses' long-term growth and resilience, driving a fairer and more resilient economy.
