Honeybee Raises Millions for Workplace Financial Wellness

HoneyBee Secures $5.7 Million to Expand Employee Financial Wellness Programs

HoneyBee, a company focused on enhancing employee financial well-being, has recently announced the successful completion of a $5.7 million equity funding round. This round was spearheaded by FFVC, a prominent venture capital firm.

Investment Details and Participants

Several other investors contributed to this financing, including Resolute Ventures, Afore Capital, Rebalance Capital, K50, and Financial Venture Studio. Notably, two-time NBA All-Star Baron Davis also participated in the investment.

In addition to the equity funding, HoneyBee has also secured a $100 million debt facility. This facility is provided by CIM, an impact investment manager dedicated to supporting innovation within underserved communities.

HoneyBee’s Mission and Services

Based in Los Angeles and a Certified B Corp, HoneyBee operates as a B2B financial technology company. Its core mission is to provide employees and their families with free access to financial support as a workplace benefit.

This support encompasses employer-sponsored “rainy day funds” and readily available financial therapy. The ultimate goal is to foster a more supportive and healthier workforce environment.

Essentially, HoneyBee empowers HR and DEI leaders to deliver financial tools and education. This helps improve the financial health of their employees, demonstrating a commitment to equity and inclusion.

The Inspiration Behind HoneyBee

Ennie Lim, CEO and co-founder, founded HoneyBee following personal financial challenges experienced after her divorce.

She recalls a period where her credit score was significantly impacted, hindering her ability to access affordable credit. This experience highlighted a gap in support and inspired her to create a solution.

Lim realized the importance of financial control and its impact on self-esteem, happiness, and relationships. This realization fueled her desire to assist others in achieving financial stability.

Founding and Core Values

In 2017, Lim joined forces with Benny Yiu and Max Zschoch to establish HoneyBee.

“We are dedicated to addressing a significant economic disparity,” Lim stated. “We aim to level the playing field in the workplace by bridging the financial literacy gap and expanding access to credit for those who need it most.”

Lim emphasizes the importance of acknowledging differing socioeconomic backgrounds and the need to address financial illiteracy.

Growth and Impact

A study by Washington University in St. Louis revealed that 89% of HoneyBee users identify as people of color, women, or both.

During the pandemic, HoneyBee onboarded over 60 mid-market companies and is preparing to launch with Fortune 500 clients later this year, demonstrating increased demand for its services.

The startup experienced a 225% growth in user base during the pandemic. It also facilitated over $2 million in rainy day funds and saw a 172% increase in on-demand financial therapy usage.

Shifting Employer Priorities

Lim observed a change in employer behavior during the pandemic. Companies began prioritizing financial health initiatives even amidst budget cuts and workforce reductions.

Current Clients

HoneyBee’s current clientele includes organizations such as Alameda County Community Food Bank, DC Central Kitchen, Kate Somerville, Community Catalyst of California, Southwest Water Company, Straus Family Creamery, Asian Art Museum, Pasadena Humane Society, and Peachtree Health.

Baron Davis’s Perspective

NBA star Baron Davis, who grew up in South Central Los Angeles, expressed strong support for HoneyBee’s mission to provide access to affordable credit.

“Financial literacy can be a significant barrier for individuals from my background,” Davis stated. “It’s crucial for companies to ensure equitable access to financial support for their employees. This access reduces workplace stress and fosters a more productive workforce.”

FFVC’s Investment Rationale

FFVC Partner AJ Plotkin highlighted the firm’s appreciation for the product’s structure. It effectively addresses a critical access problem for customers facing short-term financial needs without imposing undue burden on employees or employers.

Future Plans

The newly acquired capital will be strategically allocated to expand HoneyBee’s sales, engineering, and customer success teams, facilitating continued growth and innovation.