Revolutionizes Small Business Finance and Retail Investing with Innovative Small Business Bond Market, Raises $ 11.5 Million to Fund Growth
SMBX and The Small Business Bond ™ provide affordable access to debt capital for small businesses, enable direct investments in local communities and provide consistent returns to investors *
SMBX, the financial center that helps small businesses raise capital from retail investors in their communities, today announced the closing of an $ 11.5 million funding round. The round was led by Dovi Frances Group 11, with participation from existing investors Better Ventures, Impact America Fund (IAF), Unpopular Ventures, Berkeley SkyDeck and former Vanguard executives Paul Heller and Jim Norris.
The company has now raised a total of $ 15 million to support its Small Business Bond Financial Market which allows people to invest directly in the small businesses they want to see thrive in their local communities.
SMBX was founded by Ben Lozano, CEO; Bhavish Balhotra, Chief Technology Officer; and Jackie Chan, Chief Operating Officer. They created the SMBX Marketplace and the Small Business Bond after the SEC implemented Title III of the JOBS Act in 2016, making it easier to invest in startups and small businesses as unaccredited investors.
“Traditional banking as we have known it is coming to an end,” said Dovi Frances, founder of Group 11. “Today’s fintech leaders are building a whole new paradigm of financial products and services that are unrecognizable from existing systems. These new products must democratize credit to reach those who need it most. At Group 11, we believe the future of fintech will be led by pioneering companies like SMBX and their Small Business Bond.
“There is a new generation of emerging entrepreneurs who want something different from finance. The SMBX gives them the opportunity to become bond issuers instead of just loan takers. As issuers, they can connect more deeply with their community of customers and create a virtuous circle of wealth creation – where the profits generated by lending, borrowing and the growth of wealth are recirculated and shared with their community, ”said Ben Lozano, CEO and co-founder of SMBX. “This is what this new generation of entrepreneurs wants. And that’s what The Small Business Bond provides.
During the COVID-19 pandemic, small businesses have struggled to stay open. Many customers and supporters wanted to help and even participated in crowdfunding campaigns to support them. The SMBX market improves the crowdfunding model by allowing them to invest directly in these companies by purchasing small company bonds.
DC Mayor Muriel Bowser recently announced a partnership with SMBX called the DC Rebuild Bond Program to help fuel $ 5 million in local investments for DC small businesses. The program focuses on communities long neglected by the traditional banking system.
The SMBX marketplace and its Small Business Bond make fundraising less intimidating and financially burdensome for borrowers while providing a new investment vehicle for individual investors. This new model of community funding has proven to be a financial success for both issuers and investors, while creating a deep emotional and financial bond between a business and its clients.
In the SMBX marketplace, qualified small businesses work with SMBX to determine how much money to raise, then offer small business bonds to the general public – often their most loyal customers – who can directly support the businesses they love. while constituting a 10% return on investment *. Small Business Bonds can be purchased for $ 10 each.
Investors in these small business bonds receive full interest charged to businesses and are repaid monthly with principal and interest *. For example, a $ 5,000 investment in an 8% bond with a maturity of more than 7 years will earn more than $ 1,500 in interest, or more than $ 77 per month in principle and interest *.
“By shifting our debt service from banks to bonds from small businesses, we have enabled our friends, family and clients to invest directly in our success, earn interest and increase their wealth,” he said. said Tomas Sluiter, owner of Culmination Brewing in Portland, OR, who raised $ 400,000 at 8% on SMBX to build a new canning line and tanks to grow his business.
The SMBX market enables small businesses in the United States to raise essential capital to grow, diversify and strengthen their businesses. Examples include:
Humphry Slocombe (SMBX: SLCM) is a San Francisco ice cream chain that has raised funds to refinance debt and open a new store. Total raised: $ 250,000 at 8% interest.
Super Belly Ferments (SMBX: SUPR) is a Bend, OR company selling fermented dressings and probiotic drinks that has raised funds to place its products in regional grocery stores. Total raised: $ 75,000 at 7.5% interest.
Quesadilla Gorilla (SMBX: DLLA) is a 3-rated Visalia, CA restaurantrd on Fortune’s Top 100 Fastest Growing Downtown Companies of 2019. Their funds are used to open new locations. Total raised: $ 165,000 at 6% interest.
Kai’s Baking Studio (SMBX: KAIS) is a family-owned gluten-free bakery studio in Houston, Texas that has raised funds to move from its retail bakery to full-time wholesale production. Total raised: $ 41,670 at 8% interest.
Popoca (SMBX: POCA) is a pop-up Salvadoran restaurant that raised funds to open its first permanent location in Oakland, California. Total raised: $ 115,000 at 7.5% interest.
Sticky Fingers Sweets & Eats (SMBX: STKY) is a Washington, DC-based all-vegan bakery that raises money to grow its business nationwide. Raised of $ 500,000 at 7% interest.
SMBX is a small business capital marketplace for issuing and buying small business bonds. With it, small businesses can issue bonds directly to their customers and their communities. Those who invest in small companies listed on the SMBX can earn up to 10% annual interest, and the companies, in turn, can get the capital they need at an interest rate of between 5 and 10%. %. The Small Business Bond Market is a new financial model that maintains strong community ties, supports small businesses, and rewards everyday investors with reliable returns from the companies they love *. LinkedIn | Twitter | Instagram | Facebook | Website
About Group 11
Group 11 invests in revolutionary software companies that are reshaping the landscape of the financial services industry. As fintech continues to gain momentum and disrupt the industry’s traditional value chain, Group 11 has positioned itself as a partner of choice to provide capital and advice to entrepreneurs creating the next generation of world leaders in the financial services industry. Since its inception, the company has deployed over $ 500 million in some of Silicon Valley’s largest and most disruptive fintech companies, including Papaya Global, Tipalti, TripActions, HomeLight, SunBit, Next Insurance, Lili, Addepar and EquityBee to name a few. Learn more: group11.vc and medium.com/group-11-vc.
* Investing in Reg CF securities involves financial risks, including loss of money invested. All estimated returns on principal + interest are not guaranteed. This statement is based on the following assumptions: 1) an offer ends successfully and an investor is assigned one or more bonds, 2) that the investor holds their bonds to maturity and 3) that they do not There is no default by the issuer on any of the payments of the Issue Bond at maturity.