Crowdfunding Platform Finds A Niche

As a market gets crowded, players start looking for niches to fill.

That’s Honeycomb, an accelerator startup that is now an SEC registered web portal.

Honeycomb plans to have local customers fund small loans for community businesses that have actual revenue.

So, the bakery that wants to buy a new industrial mixer for gluten-free bread can ask its patrons to invest on Honeycomb. When the target amount is reached, Honeycomb lends the money to the bakery that then pays it back over time with interest.

Honeycomb then takes ”  a percentage of the funding” as its cut. Local lending to local businesses, that’s the niche.

http://www.post-gazette.com/business/tech-news/2017/10/25/honeycomb-credit-pittsburgh-alphalab-kickstarter-indiegogo-ken-martin-george-cook/stories/201710160023

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Banking, Banks, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology and tagged , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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