In a significant development for the investment crowdfunding industry, Honeycomb Credit has announced the acquisition of Raise Green, a platform specializing in clean energy and climate-focused investments. This merger represents a bold step toward integrating local business investments with sustainability-driven projects, creating a unified platform for impact investing.

The Acquisition and Its Implications

Honeycomb Credit, a platform connecting everyday investors with small businesses across the U.S., has facilitated over $30 million in funding and serviced investors $10 million in repayments. With this acquisition, Honeycomb aims to expand its offerings to include Raise Green’s mission-driven climate initiatives, aligning with growing investor interest in sustainability.

Raise Green raised over $10 million for its clients in its lifetime. The platform recently completed its own Wefunder campaign in July 2023, raising $124,000 through Regulation CF and $1,779,372 through Regulation D, supported by 135 investors*.  Raise Green has been able to build a recognized brand in the online investment market and featured more successful debt raises than equity raises. On average, debt rounds on Raise Green raised an average of $341k since 2021, while its equity rounds only raised a low average of $154k. Hence, merging with a leader in online debt deals makes sense. Raise Green will now be able to leverage Honeycomb’s success to lower its costs and attract new investors into climate deals, an attractive category in the investment space. The transition promises a seamless experience for Raise Green investors, who can now track their investments in real-time and access new opportunities through Honeycomb’s platform.

Consolidation in the Industry

The investment crowdfunding space is becoming increasingly competitive, with major players like Wefunder, StartEngine, DealMaker, Republic, and Honeycomb vying for market share. Platforms are seeking ways to differentiate and scale, often through acquisitions or strategic partnerships.

Honeycomb’s move reflects this trend, signaling a larger consolidation within the industry. Kingscrowd has observed similar indicators across platforms, with some showing signs of shutting down or being acquired. While specifics on future developments remain confidential, these shifts highlight the pressures smaller platforms face to innovate and remain viable.

Strategic Synergies and Investor Benefits

This acquisition combines the best of both platforms. Honeycomb’s infrastructure, including its user-friendly mobile app and the Honeycomb Wallet, offers Raise Green’s investors an enhanced experience. Meanwhile, Honeycomb users gain access to climate-focused opportunities, enabling them to diversify their portfolios with both local business and sustainable investments.

George Cook, CEO of Honeycomb Credit, emphasized the alignment of missions: “Together, Raise Green and Honeycomb Credit will be the one-stop shop where anyone can be an impact investor.” By combining their expertise, the platforms aim to create a seamless experience for users while driving meaningful change in communities and the environment.

Industry Outlook and Final Thoughts

The Honeycomb-Raise Green merger exemplifies how platforms can adapt to evolving market demands while staying true to their missions. For investors, this union presents an exciting opportunity to engage in both local and global impact investing on a single platform. For the industry, it signals a maturing market where collaboration and consolidation are becoming key strategies for growth.

Kingscrowd will continue to monitor these trends, as the crowdfunding landscape reshapes itself in response to competition and investor preferences. Platforms like Honeycomb and Raise Green set a strong example of how mission-driven innovation can thrive in a challenging market. As the sector evolves, strategic moves like this one may become the blueprint for success in equity crowdfunding.

For more details, visit Honeycomb Credit or explore Raise Green’s Kingscrowd funding page. 

*Per Honeycomb’s response to additional questions from Kingscrowd, Investors in Raise Green should know that they will receive an official notification outlining the next steps and providing detailed guidance on the process to follow.