Pittsburgh crowdfunding startup adds Clarion County greenhouse campaign
A Pittsburgh crowdfunding startup has taken on a Clarion County farming cooperative that wants to expand so that it can provide organic produce year-round.
Honeycomb, a crowdfunding site that provides micro-loans to small businesses looking to expand, has added Clarion River Organics to its growing list of live campaigns.
The Sligo-based cooperative provides marketing and distribution services for a group of 18 Amish organic produce farmers in Clarion County. In addition to online wholesale and grocery store sales, Clarion River Organics provides produce through a community-supported agriculture, or CSA, program that serves Greater Pittsburgh and Western Pennsylvania.
Summer pick-up locations include downtown Pittsburgh, Monroeville, Squirrel Hill, the Strip District, Oakland, Upper St. Clair and 16 other sites.
The cooperative wants to expand its off-season vegetable offerings by building three organic greenhouses -- a venture for which it is soliciting micro-loans from its supporters through Honeycomb.
"Honeycomb came to us at just the right time," said CRO founder and general manager Zeb Bartels. "We had already bought and erected the greenhouse structures, but we were out of cash needed to install the equipment and hook up the utilities. We could have gone to our bank lender for the money needed, but Honeycomb gave us an innovative way to include our supporters in our growth."
Honeycomb describes itself as a funding portal that brings together companies and investors. Unlike Kickstarter and other crowdfunding sites, Honeycomb allows investors to make micro-loans to businesses they support and get their money back with interest.
Clarion River Organics is soliciting loans of $100 or more from its supporters for the greenhouse project. Since the campaign launched on March 22, $20,990 has been funded. The campaign will stay live through May 9.
Honeycomb holds investor contributions in escrow and only releases the money if the goal is reached. If the goal is not reached, the money is returned to the investors.
The micro-lending program takes CSA a step further, he said, by allowing supporters to invest directly in the farms and to share in the expected profits at a competitive interest rate.
"Our business has always been about connecting with local people," Bartels said. "Honeycomb gives us a new way to connect our neighbors to their local food system. Bringing farmers and eaters together around shared goals makes our community stronger."
Stephen Huba is a Tribune-Review staff writer. Reach him at 724-850-1280, shuba@tribweb.com or via Twitter @shuba_trib.
