The rise, fall, and reinvention of community banking.
EDITION 13: INVEST ON PURPOSE
In 2004, I sat behind a desk as a personal banker at Bank of America. What I didn't know then, and what I found fascinating when I discovered it recently, was the bank's origin story.
In 1904, banker Amadeo Giannini watched San Francisco's big banks repeatedly turn away hardworking Italian immigrants. The bank’s response? These immigrants weren't "bankable." Giannini disagreed. He set up a makeshift bank in a converted saloon and started lending to the people he knew would succeed.
That bank eventually became Bank of America.
The irony? A century later, I worked at that same bank, watching history repeat itself in reverse. The institution that began by serving the underserved had become exactly what it once fought against.
When banks say no, communities say yes.
The numbers tell a stark story: Less than 50% of small business loans are approved by big banks. And unfortunately, 82% of businesses fail because of cashflow problems.
But here's what's interesting: while banks have been saying no, communities have been figuring out how to say yes. Last year, digital capital raising platforms raised over $36 billion in North America. This isn't just a trend—it's a transformation in how businesses access capital.
The psychology of ‘no’.
Even though there are more creative solutions to finding capital today, rejection still leaves scars.
After hearing "no" enough times, many business owners stop asking. They internalize the message that they're not "bankable" enough, not established enough, not worthy of investment. They sometimes are forced to make their dreams smaller to fit with the funding they do have.
But what if we can be giving more “yeses”?
When a bank says no, they're following a rigid playbook written for a different era. They're looking at credit scores, not capability and character. At collateral, not community impact. At past performance, not future potential.
Taking back control.
This is the power of community funding.
For investors, it's a chance to democratize success and build wealth while supporting businesses they believe in. For business owners, it opens up flexible funding options that traditional banks don't offer.
Platforms like Honeycomb Credit and Republic let businesses raise capital by offering private loans and equity to community investors, often with more competitive terms than traditional loans. WeFunder has helped businesses raise over $10 billion of venture capital with minimum investments as low as $100. These aren't just funding platforms—they're community builders.
The most successful community-funded businesses often diversify their funding sources:
Revenue sharing investments from local supporters
Microloans from community lending platforms
Equity crowdfunding for larger capital needs
Community development financial institutions (CDFIs) that offer flexible terms
This approach isn't just about getting funded. It's about building a network of invested supporters who want to see you succeed.
The future is community powered.
The technology for community investment has evolved dramatically. Today's platforms handle all the complex legal work, making it as easy to invest in a local business as it is to buy stocks through Fidelity or Robinhood.
But unlike the stock market, where your investment is just another drop in the ocean, community investment creates a virtuous cycle. Investors become customers. Customers become advocates. Advocates bring in more customers and investors.
We're not just funding businesses—we're building resilient local economies. And in doing so, we're returning to the spirit of Amadeo Giannini's saloon bank, but with tools he could never have imagined.
The choice is yours. Every investment decision is a vote for the kind of world you want to live in.
When we let traditional banks be the gatekeepers of success, we limit our communities' potential. But when we enable community investment, we open up possibilities that no bank would ever consider.
At BeeCene, something transformative is brewing that could reshape how communities invest in their future. Make sure to follow us on LinkedIn and Instagram to be the first to know when we make our announcement.
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This newsletter is for informational purposes only and should not be considered financial advice.
Sources
https://en.wikipedia.org/wiki/Amadeo_Giannini
https://help.wefunder.com/why-wefunder/304047-who-else-has-raised-funding-2?from_search=175406829
https://www.businessinsider.com/why-small-businesses-fail-infographic-2017-8?r=US&IR=T
https://www.statista.com/statistics/946659/global-crowdfunding-volume-worldwide-by-region/
