HoneyBee is a startup that aims at helping companies provide financial support for employees. Today, HoneyBee announced it had raised $5.7 Million in equity through a round led FFVC.
Along with Baron Davis, a two-time NBA All-Star, Resolute Ventures, Afore Capital and Rebalance Capital also participated in the financing.
HoneyBee also secured a $100,000,000 debt facility from CIM. CIM is an institutional impact investor manager that provides capital for innovation and lends to underserved areas.
Certified B Corp, a Los Angeles-based financial technology company, describes itself as a B2B financial technology firm that provides free financial support to employees and their families. This support could be in the form of no-cost, employer-sponsored rainy day funds or on-demand financial therapy. The goal is to create a healthier work environment.
HoneyBee is a tool that will allow HR and DEI leaders who are committed to creating an inclusive and equitable culture to offer financial education and tools to improve the financial health of their employees.
Ennie Lim, CEO and cofounder of HoneyBee, said that she was inspired by her financial struggles after going through a divorce.
She recalls that my credit score was so bad that I couldn't get any credit at all. Although I would have done many things differently, I didn't know what I didn't know and was embarrassed to ask for help.
Lim learned from this experience how important it is to feel in control of your finances.
It can affect your self-esteem, happiness, and personal relationships. This made me want help others to take control of their lives, she stated.
In 2017, Lim joined forces with Benny Yiu, Max Zschoch and Max Zschoch to create HoneyBee.
Lim stated that we are reducing huge economic inequalities and leveling the playing fields at work by increasing financial literacy and providing credit access to those who need it most. Recognize that people come from different socioeconomic backgrounds. We cannot ignore the varying degrees of financial literacy.
Washington University in St. Louis conducted a study and found that 89% HoneyBee users were people of color, women or both. HoneyBee was able to sign over 60 mid-market companies as customers during the pandemic. It will be launching later this year with Fortune 500 companies.
During the pandemic, the startup's user growth increased by 225% and the company claims it has provided over $2 million in emergency funds. Its on-demand financial therapy usage grew by 172% over last year.
Lim stated that during this financial crisis, employers began to notice a shift in the way they bought to improve their financial health.
Honeybees customers are Alameda County Community Food Bank and DC Central Kitchen, Kate Somerville. Southwest Water Company, Straus Family Creamery. Asian Art Museum, Pasadena Humane Society, and PeachtreeHealth are all among them.
Baron Davis, NBA star, grew up in South Central Los Angeles together with his grandmother. He believes in startups' desire to offer affordable credit.
For people like me, financial literacy is a barbed wire. He wrote via email that it is crucial for companies to offer financial support to their employees. Access to financial support reduces stress, especially for those who are trying to support their families while working hard. A happier, more productive workforce will be created by easy access to education and money.
AJ Plotkin, FFVC Partner, said that his company likes the way the product solves a major access problem for customers needing a bridge to meet short-term, urgent needs. It is also not too burdensome for either the employee or employer.
The company intends to use the new capital to expand its sales, engineering and customer service team.
