Nectar Group raises $5M seed to turn idle Bitcoin into yield
What's the deal? Nectar Group, developer of Bitcoin income platform HoneyBDealroom has a profile for this one. Try Dealroom →, has raised $5 million in a seed round led by Portal VenturesDealroom has a profile for this one. Try Dealroom →. Peer Venture Partners, Anchorage Digital Ventures, an unnamed family office, and angel investors also participated.
The details: The round was structured through a SAFE with a one-for-one token warrant at a $30 million post-money valuation, co-founder and chief executive officer Josh Gordon told The Block. None of the investors received board seats, observer roles, or advisory positions.
What's the endgame? HoneyB aims to help Bitcoin holders earn income on their holdings. Its first strategy lets users borrow stablecoins against Bitcoin collateral, then invests the proceeds in products spanning US Treasuries, fixed income, credit, gold, and options.
Gordon said the underlying product targets roughly 10% annual returns, with HoneyB aiming for net yields of about 2% to 4% on a user's Bitcoin after borrowing costs and fees. "Returns are not guaranteed," he noted.
Why now? "Bitcoin is a massive asset class, but the options for earning income on it remain limited," Gordon said. The startup plans to launch in the fourth quarter of 2026, initially offering its product to institutional investors outside the US, with a US expansion and a retail product to follow.
What could go wrong? HoneyB has yet to launch, and its yields are not risk-free. Lending against Bitcoin introduces borrower, collateral, custody, and liquidity risks, and actual results depend on strategy performance and loan-to-value ratios.
The signal: The raise is a bet on growing institutional demand for Bitcoin-backed income, a still-developing market. Two PrimeDealroom has a profile for this one. Try Dealroom → launched a lending vault in September targeting 1.5% to 2% annual returns, and Coinbase has introduced a Bitcoin yield fund targeting mid-single-digit returns — placing HoneyB's planned 2% to 4% squarely in a competitive field.
Read more: theblock.co
Image credit: Generated with Gemini
