Two new bond offerings accompany the funding, enabling small businesses to raise capital from their communities and, in turn, provide a meaningful return back to those investors.
SMBX, a marketplace connecting successful small businesses with everyday investors through small business bonds available via its app and website, announced that it has raised $2.5 million in Seed funding led by Better Ventures with participation from Impact America Fund (IAF), Unpopular Ventures and others. With SMBX, small businesses can issue bonds directly to their customers and community. Those who invest in the small businesses listed on the SMBX can earn a 4-9% return, and the businesses, in turn, can obtain the capital they need to grow.
“The SMBX is ushering in the next wave of financial technology”
“The SMBX is ushering in the next wave of financial technology,” Bhavish Balhotra, CTO of SMBX. Jackie Chan, COO, added, “We’re lowering the barriers to complex financial tools. Let’s use these innovations to empower communities to thrive. We are especially excited to open new pathways to capital for small business owners affected by COVID-19 and give everyday people the ability to invest in the small businesses in their community.”
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The funding will support SMBX’s growth as more and more businesses seek out new ways to raise capital and engage with their customers. Along with announcing the funding, SMBX has added two new bond offerings to the platform that anyone can invest in starting today:
- The Cookie Department, a Portland, Ore.-based online business selling KETO cookies, is raising $25k to grow its online sales and launch its new flavor, Champion Chip.
- Uji Time, a Bay Area-based Japanese inspired dessert shop, is raising $100k to introduce a new line of hard ice cream that’s easier to deliver to their community across the Bay Area.
“Sound, scalable, and community-oriented financial products like SMBX are extremely important — especially for businesses run by people of color. Despite their considerable and growing contribution to the American economy, these businesses haven’t been prioritized by large financial institutions and their success is critical for national economic recovery,” said Kesha Cash and Kaiton Williams, investors at IAF.
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