SMBX, a San Francisco, CA-based financial marketplace for small businesses to raise capital from retail investors in their communities, closed an $11.5m seed funding round.
The round was led by Dovi Frances’s 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, which has now raised $15m in total funding, intends to use the capital to continue to expand operations and its business reach.
Founded by Ben Lozano, Chief Executive Officer; Bhavish Balhotra, Chief Technology Officer; and Jackie Chan, Chief Operating Officer, 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 community. Those who invest in the small businesses listed on the SMBX can earn up to 10% annual interest, and the businesses, in turn, can obtain the capital they need at an interest rate that ranges between 5 and 10%.