The Power of Community Investment
- Julianna Cario
- Apr 29
- 4 min read
Investment Crowdfunding Is the Answer for Many Small Businesses
There was a time—not that long ago—when opening a small business meant walking into your local bank, sitting across from someone who knew your name, and asking for a loan. They knew your story. They understood the neighborhood. And if they believed in you, they backed you. That was community investment in its purest form.
But that kind of relationship-based banking? It’s become harder to find.
Today, most banks are part of massive institutions. Lending decisions are made by algorithms, not people. And for many small business owners, the answer is “no” before they even finish the application. In fact, less than 50% of small business loans are accepted.
So, if you’re a business owner, how do you get the capital you need to grow? How do you get back to the time when your community wanted to see you win? But here’s the thing - your community does want to see you win. And there’s a way to get back to community investment. It’s investment crowdfunding - and it’s changing the game.
Investment crowdfunding isn’t a dirty little secret. It’s not a fallback. It’s not just for off the wall product launches or feel-good stories. It's the future of community investment because it's a way for entrepreneurs to raise capital, build support, and create lasting relationships with the people who believe in them most, just like community banks did in the past.
Investment Crowdfunding: A Modern Strategy with Roots in Traditional Community Support
When you strip it down, investment crowdfunding is actually a pretty old-school concept. It’s just neighbors helping neighbors. It’s a bunch of people chipping in. And it’s not because they have to, but because they want to see people near them succeed.
Sound familiar? It’s how community banks used to work. It's the small grocery store that’s expanding its size to feed more people. It’s the construction company that needs new machinery to grow. It’s the newly licensed veterinarian setting up shop in your town. Investment crowdfunding is just that—but in a way that meets our modern world where it is.
And when people contribute to a campaign, they’re doing more than giving money. They’re saying, “I believe in you.” They’re backing you with their dollars. It’s not charity. It's an investment. And it has real power.
What Makes Investment Crowdfunding So Effective for Small Business Owners?
The main reason small business owners opt for investment crowdfunding is to raise money. But that’s not the only benefit (though that helps). Crowdfunding brings a whole set of positives traditional financing can’t match:
1. Built-In Community Support
When people invest in your business, whether it’s $100 or $5000, they’re personally invested in your success. They become your biggest cheerleaders, your best customers, your word-of-mouth marketers. It’s true community investment: support with skin in the game.
2. Proof of Concept
If your growth idea takes off on an investment crowdfunding platform, it is a loud, clear message: people want what you’re offering. You don’t have to wait for months and months to maybe have a bank to approve your business plan. You build your own traction, and that builds confidence, not just for you, but for future investors or lenders down the line.
3. Creative Freedom
Investment crowdfunding gives you the freedom to grow your business on your own terms. You’re not tied to a bank’s underwriting checklist or giving up equity to outside investors. Your backers support your vision because they believe in you—not just your profit margins.
4. Marketing and Momentum in One
A good investment crowdfunding campaign does more than raise money. It tells your story. It builds buzz. It starts conversations. Done right, your campaign can turn into a big marketing push.
Crowdfunding Is Not Plan B—It’s the Plan That Makes Sense
Let’s be honest. Because of platforms like Kickstarter, the common belief is that all crowdfunding is a donation. And while we firmly believe other types of crowdfunding are good and worthwhile, investment crowdfunding is different.
Crowdfunding is real funding. It creates real relationships and real results. And more importantly, builds on the values that made small business such a powerful force in the first place: connection, creativity, and resilience.
It’s the community stepping in to say, “Let’s build this together.”
With more small businesses embracing investment crowdfunding, we’re shifting how we think about business, money, and trust.
The New Era of Community Investment: Local Roots, Global Reach
One of the most exciting things about investment crowdfunding is how it expands the idea of community. It’s no longer just about who lives on your street. Now, your “community” can include people across the country—or even the world—who connect with your story, your mission, and your dream.
It’s hyper-local support with global potential. That’s what makes today’s version of community investment so powerful. It’s not limited by geography or gatekeepers.
Thinking About Launching an Investment Crowdfunding Campaign? Here’s What You Need to Know:
If you’re considering an investment crowdfunding for your business, keep this in mind:
Your story matters. People want to support more than a product. They want to support you. Be clear, be honest, and let your passion shine through.
Clarity is important. Set a realistic funding goal and explain exactly how the money will be used.
Keep people in the loop. Share updates, celebrate milestones, and thank your funders. Stay connected even after the campaign ends.
Build momentum early. Get your friends, family, and network involved before launch. Early support helps your campaign gain visibility and trust.
Final Thoughts: This Is What Modern Community Investment Looks Like
Investment crowdfunding is a movement. At Honeycomb Credit, we’re committed to helping small businesses raise growth capital through their communities. It’s how we rebuild the connection between business and community when the world often feels too big and too impersonal.
It’s a return to the roots of entrepreneurship, where people helped each other rise - because they wanted to.
So if you’re a small business owner trying to find your footing, don’t be afraid to lean into investment crowdfunding. You’re not just raising money. You’re building a community. You’re proving your idea has value. And you’re inviting people to come along for the ride.
That’s not weakness. That’s strength.
That’s community investment—and it’s never been more powerful.
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