Dealflow | October 21, 2021

SMBX raises $11.5 million to democratize small business lending

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, October 21 — San Francisco-based SMBX raised $11.5 million to democratize financing for small businesses.

Launched in 2016, SMBX lets retail investors invest as little as $10 in small business bonds and receive monthly payments. The company’s goal is to help everyday investors create passive income and grow their wealth, while helping small businesses gain access to financing.

The marketplace has hosted nearly $3 million in bond offerings. SMBX co-founder Ben Lozano told ImpactAlpha SMBX expects to list more than 250 new bonds in the coming year.

The company’s seed round was led by Group 11, with participation from Better Ventures, Impact America Fund, Unpopular Ventures, Berkeley SkyDeck and former Vanguard executives Paul Heller and Jim Norris.

Place-based investing

SMBX is partnering with Washington, D.C. to deploy $5 million of investment capital in the District’s minority-owned small businesses. The D.C. Rebuild Bond program will focus on small businesses in communities that have historically been underserved by the traditional banking system.