HoneyBee Collective Turns To Crowdfunding Campaign For Business Investments

It’s become quite the burden for cannabis businesses to gain access to capital, facing many roadblocks like a lack of bank loans thanks to federal prohibition. For some, it’s almost impossible to start a business in America’s marijuana industry solely because of a lack of funding. 

This explains why we continue to track new mergers and acquisitions in the cannabis industry, also known as marijuana M&A. According to reports from MJBizDaily, marijuana M&A has been a hot topic in American markets. Many companies don’t have options to stay afloat on their own, forcing them to be bought out by corporate businesses or merge with them if lucky enough. 

Private equity deals are also quite popular for investments, but Forbes reports that can see some significant issues in the case a particular market doesn’t respond to products as hoped. For this reason, and many more that need our attention, some companies are deciding to raise funds through public crowdfunding campaigns. 

Take Honeybee Collective, for example. This Colorado-based and owned community-driven, sustainable cannabis startup took the crowdfunding route instead of your usual investment rounds and private equity ventures. A recent press release published in January 2022 notes how the company aims to raise $250,000 via a crowdfunding campaign. 

The funds are said to go towards marketing and product packaging. As per Forbes, the campaign launched on December 4, 2021, and in just two days, the company broke Mainvest’s record for most money raised in 48 hours with $80,000. In just four days since the launch, the press release states HoneyBee raised $107,000. By March 1, it hopes to reach its goal of $250,000.

So far, HoneyBee has attracted 54 investors who have donated funds to the collective via a crowdfunding campaign, some investors contributing $100, and others $10,000.

Erin Parkins, Honeybee co-founder, managing partner, and head of marketing and operations, says the most effective way to “combat wealth inequality” is to put money “directly into the hands of the people and trust them to use it as they need.”

She later told Forbes that “Crowdfunding investment is just that, an investment.” And based on the amount of money investors choose to donate and which round they invested in, they should receive a return on their investment from 1.75x to 2x “once we start generating revenue,” says Parkins. 

HoneyBee Collective just launched this month. For more information, visit its website here.