Honeycomb Credit - Kaxlo - Crowdfunding Review and Details
Honeycomb Credit
Equity Crowdfunding Portal Review
Honeycomb Credit unlocks growth opportunities for small businesses to build vibrant, financially empowered communities.

Min Investment:

$100

Security Type(s):

Debt, Convertible Note

Website:

honeycombcredit.com

Summary

Honeycomb Credit Equity Crowdfunding Portal Review – Honeycomb Credit is a smaller, but active and growing equity crowdfunding portal with a emphasis on local businesses. While much of their goal is around building communities the investment terms are not unreasonable.  Most investments on the platform appear to be in the form of debt with interest rates hovering around the 13% mark.

A large portion of the Honeycomb Credit investments are in the category or restaurants or retail. A typically high risk investment sector. However as the platform has chosen debt as the investment vehicle the restaurants and retail investments become a bit more attractive as equity in these sectors are difficult to receive a return on investment.

We even saw some of these investments which came with a PERSONAL GUARANTEE. This is something we have not seen on equity crowdfunding platforms as is an incredibly impressive benefit for the investors.

Investments on Honeycomb are smaller than most other crowdfunding portals. Some investments raising as little as $10k.

One thing that is lacking on the Honeycomb investment listings is the ability to drill down into the companies current financials. They do provide links to the Form C submissions which include financials, but it just take a bit more time to evaluate an investment.

Incentives and Promotions

Like many other crowfunding portals there are referral bonuses to refer a business to raise funding via the platform. The referral bonus is only $250, lower than most other crowdfunding platforms, however the fees to list on Honeycomb portal are much lower meaning when investing on the platform more of the investment funds go directly to the project rather than in platform fees.

Earnings & Data

As most investments are debt, this earnings calculations are fairly simple to calculate. Below is an example earnings calculation from a Honeycomb Portal investment in a restaurant investment.

Investment Amount

One-Time Fee

Potential Quarterly Repayments*

Potential Total Repayment*

$100

$2.85

$9.96

$119.57

$500

$14.25

$49.82

$597.85

$1,000

$21.76

$99.64

$1,195.72

$5,000

$21.76

$498.21

$5,978.58

Compensation

Honeycomb Portal charges a fee calculated as a percentage of total amount of funding completed through Honeycomb Portal. Additionally, issuers may be charged a posting fee. All issuer related fees will be disclosed to investors and issuers.

From the current listings, it appears most investment opportunities charge a $250 posting fee and a 7.0% – 8.0% loan origination fee on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $37.25 per investor.

Details

Accredited Investor Requirements:

No

Sectors/Industries:

Retail, Hospitality, Impact Investing, Restaurant

Portal Location:

United States

Portal Type:

Equity Crowdfunding

SEC CIK#:

0001705726
Honeycomb Credit Social Media:

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