What SMBX does

SMBX operates a FINRA-regulated funding portal and public marketplace that enables small businesses in the United States to raise capital by issuing Small Business Bonds™ directly to retail investors, rather than borrowing from banks or diluting equity to private investors. Founded in 2016 and headquartered in San Francisco, the company serves two distinct user groups: small businesses seeking community-based, non-dilutive financing, and everyday investors—both accredited and non-accredited with US-based bank accounts—who can participate with a $10 minimum and earn advertised returns of up to 11.5% via monthly principal-plus-interest payments. The two-sided marketplace model democratizes access to small-business debt securities under Regulation Crowdfunding (Reg CF) and positions SMBX as a regulated intermediary rather than a lender or balance-sheet holder.

The platform is built around four core product components: the SMBX Marketplace (a web-based browse and filter experience organized by location, interest rate, term, and collateral), the proprietary Small Business Bond™ instrument itself, the Gift Bond Program (which lets users purchase and gift bonds to others as a community-investment feature), and mobile applications on iOS and Android. Distribution is entirely digital and self-service: investors sign up and invest independently through thesmbx.com or the mobile apps, while business owners apply for bond-based crowdfunding through a dedicated /raise portal. There is no public API, no SDK, and no disclosed integrations, indicating a closed, vertically integrated platform rather than a developer-facing infrastructure play.

SMBX monetizes via transaction fees on completed bond offerings as a marketplace intermediary, with no disclosed subscription or SaaS pricing. The go-to-market motion is product-led growth across both sides, supported by content marketing (blog.thesmbx.com), an investor-education PDF, and earned-media press coverage. The company has raised approximately $15.2 million cumulatively across seven disclosed funding rounds between 2018 and 2023, with the largest being an $11.5 million seed round in October 2021 led by Group 11. Notable investors include Better Ventures, Impact America Fund, Berkeley SkyDeck Fund, Hard Yaka, Ironfire Ventures, AltaIR Capital, Unpopular Ventures, 4G Capital, K Street Capital, and Republic. Leadership comprises co-founders Benjamin Lozano (CEO) and Jackie Chan (COO), CTO Bhavish Balhotra, and VP of Communications Peter Barden.

Name

SMBX

Legal name

SMBX, LLC

Website

https://thesmbx.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

11–50 employees

Short description

SMBX is a FINRA-regulated funding portal operating a marketplace where U.S. small businesses raise capital by issuing bonds directly to retail investors, with $10 minimum investments and advertised returns up to 11.5%.

Ownership category

akta.pro rank

Product category

Alternative Lending Marketplace

NAICS

Mortgage and Nonmortgage Loan Brokers (52231), Finance and Insurance (52)

SIC

Loan Brokers (6163), Security Brokers, Dealers & Flotation Companies (6211)

akta.pro primary industry

SME Lending Platforms & Embedded SME Credit (FSAKAGAJ)

akta.pro secondary industries

P2P Small Business / SME Marketplace Lending (FSAKAHAC), SME Term Loans & Growth Capital (FSAKAGAB)

Keywords

• Small business bonds
• Crowdfunding marketplace
• Alternative business financing
• Community bond investing
• Regulatory crowdfunding platform

Headquarters

HQ city

San Francisco

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Digital Commerce or Content

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure, Others

Revenue model

1. Transaction Fees on Bond Offerings: SMBX generates revenue by facilitating bond offerings between small businesses and investors. The platform serves as a marketplace intermediary, earning fees on completed transactions.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

SMBX operates a FINRA-regulated funding portal and public marketplace where U.S. small businesses issue Small Business Bonds™ to raise capital and individual investors purchase those bonds with a $10 minimum. Investors receive monthly principal plus interest payments (with potential returns up to 11.5%), while businesses access alternative financing without taking on traditional short-term debt or dilutive private equity. The marketplace is delivered via a web platform and iOS/Android mobile applications, accessible to both accredited and non-accredited investors with U.S. bank accounts.

Product overview

SMBX is a unified crowdfunding platform built around its core Small Business Bond™ instrument, which enables small businesses to raise capital by borrowing directly from everyday investors. The platform consists of the SMBX Marketplace where investors discover and invest in available bond offerings, the Gift Bond Program for gifting bonds to others, and mobile apps for iOS and Android. The platform is operated by SMBX, LLC, a funding portal registered with FINRA, allowing both accredited and non-accredited investors to participate with minimum investments as low as $10.

Differentiator

Problem solved

Functional benefit

Products and services

• SMBX Marketplace Web-based financial marketplace where investors can discover, browse, and invest in available Small Business Bonds, including both live and completed offerings. The marketplace supports filtering by location, interest rate, term, and collateral, and is accessible to both accredited and non-accredited investors with U.S. bank accounts.
• Small Business Bond™ A bond instrument enabling small businesses to borrow funds directly from everyday investors through the SMBX marketplace, instead of from banks or private equity. Investors receive monthly principal plus interest payments, with interest rates on offerings reaching up to 11.5%, and can invest with a $10 minimum.
• Gift Bond Program A program that allows SMBX users to gift Small Business Bonds to other individuals, enabling community-investment opportunities to be given as presents.
• SMBX Mobile App Native iOS and Android applications available on the Apple App Store and Google Play Store that allow investors to browse the marketplace and manage their Small Business Bond investments on mobile devices.

Named customers1 record

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Scale indicators2 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Wefunder: Wefunder is a Reg CF/D funding portal enabling everyday investors to invest in small businesses and startups. Like SMBX, it serves SMB capital raising through crowdfunding, but focuses on equity and revenue-share structures rather than bonds.
• Republic: Republic is a private investment platform offering Reg CF and Reg A+ offerings to both accredited and non-accredited investors. It directly competes with SMBX in democratizing access to small business and startup investing through a regulated marketplace.
• Honeycomb Credit: Honeycomb Credit operates a community-sourced small business loan marketplace where local residents and customers fund SMBs via crowdfunded loans. It is the closest direct peer to SMBX in terms of bond-like debt instruments and community-based SMB financing.
• MainVest: MainVest is a crowdfunding platform that lets retail investors fund small businesses via revenue-sharing agreements. It competes with SMBX for the same SMB borrowers seeking community-based, non-bank financing and the same retail investor audience.
• StartEngine: StartEngine is a Reg CF and Reg A+ equity crowdfunding platform for startups and small businesses, with a large investor base. It competes with SMBX for SMB capital raises and retail investors, though it focuses on equity rather than bonds.
• SeedInvest: SeedInvest is an equity crowdfunding platform for startups and SMBs, accredited and non-accredited investors. Like SMBX, it operates as a regulated funding portal under Reg CF, though focused on equity offerings.
• Kiva: Kiva is a non-profit crowdfunding platform that enables crowdfunded 0% interest loans to small businesses and entrepreneurs. It overlaps with SMBX in the small business crowdfunded lending category, with broader social impact focus.

Emerging players

• Fundrise: Fundrise is an alternative investment platform offering private market access to retail investors, primarily in real estate but expanding to other assets. It is comparable to SMBX as another fintech democratizing private investment for non-accredited investors.

Broad incumbents

• Funding Circle: Funding Circle is a large online SME lending platform offering term loans and lines of credit to small businesses. While not a crowdfunding marketplace, it competes with SMBX for SMB borrowers seeking non-bank financing.
• LendingClub: LendingClub operates a large peer-to-peer lending marketplace, historically for consumer loans but with an SMB lending arm. It is comparable to SMBX as an established online marketplace lender serving borrowers seeking non-bank credit.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/thesmbx
• Facebookfacebook.com/thesmbx

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds7 records

Investors14 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about SMBX