SMBX, Inc.

SMBX, Inc. is an innovative financial platform that connects small businesses with individual investors, enabling them to secure funding through the Small Business Bond™, promoting community investment. Founded in 2016, SMBX, Inc. is based in San Francisco, US, and specializes in providing a unique marketplace for small businesses to issue bonds for direct funding from investors.

The company has successfully closed 8 deals, with its latest funding round being a Seed round of USD 11. 5 mn in October 2021, led by Group 11. Founders Benjamin Lozano, Bhavish Balhotra, and Jackie Chan have a history of entrepreneurship, with Lozano serving as the current CEO. The SMBX offers a distinctive financial platform through its core product, the Small Business Bond™, which provides an innovative method for small businesses to secure funding by borrowing directly from individual investors rather than traditional banking institutions.

This marketplace model enables everyday investors, with a US-based bank account, to invest in local small businesses they support, starting with investments as low as USD 10. The bonds are structured to provide monthly payments of principal and interest to investors, thereby creating a sustainable investment avenue that connects community members with local enterprises. The SMBX marketplace caters to small businesses across the United States, aiming to empower a diverse range of industries including retail, hospitality, and service sectors. The company was established to address the funding gap often faced by small businesses, facilitating an alternative financing solution that encourages community investment and economic growth.

The revenue model of SMBX revolves around the transactions occurring within its marketplace, where small businesses issue bonds to raise capital and investors purchase these bonds. Each transaction typically involves a business offering a specific bond with defined terms, including interest rates and maturity dates, which investors can select based on their investment preferences. Revenue is generated through the successful closing of these bond offerings, as SMBX earns fees from the businesses in exchange for facilitating these investments. The structure of these transactions aims to create a mutually beneficial relationship, wherein businesses gain access to necessary funding while investors receive potential returns through interest payments.

The SMBX system emphasizes transparency and accessibility, catering to a broad customer base that includes both individual investors and small business owners seeking funding opportunities. In October 2021, SMBX, Inc. raised USD 11. 5 mn in Seed funding, led by Group 11, to build its small business investing marketplace and grow its team.

The company is focused on expanding its platform capabilities and enhancing user experience. Future plans include launching new product features aimed at increasing investor engagement and expanding into additional markets across the United States. The recent funding will be utilized to support these initiatives and facilitate this growth.