ALternative Financing
Honeycomb Credit is a community-based investment platform that offers entrepreneurs an alternative way to raise capital by connecting small businesses with everyday investors rather than traditional lenders. Through its online crowdfunding model, business owners can secure fair-term financing—such as community-backed loans, crowdfunded equity, or revenue-sharing arrangements—from customers, neighbors, and local supporters who invest amounts as low as $100. This approach helps entrepreneurs access growth funds while retaining control and building stronger relationships with their communities, especially for businesses that might struggle to obtain conventional bank loans or venture capital. Honeycomb has expanded its services by integrating rewards-based crowdfunding, grants, and coaching through its acquisition of IFundWomen, creating a more comprehensive suite of funding options for startups and growing businesses nationwide.
Rollover as business startups (ROBS)
ROBS (Rollover as Business Startups) is another alternative financing strategy that allows entrepreneurs to use eligible retirement funds—such as a 401(k) or traditional IRA—to start or purchase a business without taking a taxable distribution or early withdrawal penalty. Through a compliant ROBS structure, funds are rolled into a newly formed C Corporation’s retirement plan, which then invests in the business. For entrepreneurs across Wisconsin and the Midwest, ROBS can be an attractive option for those who want to leverage their existing retirement savings to launch a venture without incurring debt or giving up equity. However, because the structure must meet specific IRS and ERISA requirements, it is essential to work with experienced legal and financial professionals to ensure proper setup and ongoing compliance.
Crowdfunding
Crowdfunding allows entrepreneurs to raise money by collecting small contributions from many people, typically through online platforms. Unlike loans or venture capital, it usually does not require giving up significant ownership or taking on debt, though some models offer rewards or future products in return.
Popular platforms such as Kickstarter, Indiegogo, and GoFundMe let business owners share their ideas, explain funding needs, and set financial goals. For entrepreneurs in Wisconsin and the Midwest, crowdfunding expands their reach beyond local communities and helps test market interest before launching. While it requires strong planning and marketing—and funding is not guaranteed—it offers a modern way to raise capital, build community support, and gain early exposure without relying solely on traditional lenders or investors.
Tundra Labs, Tundra Tracker product is a Green Bay based company that raised over $1M on Kickstarter to fund their product. More HERE