Nectar Group raises $5 million for Bitcoin yield platform HoneyB at $30M valuation

Bitcoin yield platform HoneyB lands $5 million seed funding

Nectar Group, the startup behind bitcoin income platform HoneyB, has raised $5 million in a seed round. Portal Ventures led the investment, which was made at a $30 million post-money valuation.

The company plans to launch HoneyB this quarter, starting with institutional investors outside the United States. The first product will offer annualized returns of roughly 2% to 4% on bitcoin after financing costs and fees.

Key funding details

• $5 million raised through a SAFE (a contract that converts into equity later) and a one-for-one token warrant


• $30 million post-money valuation


• Portal Ventures led; Peer Venture Partners, Anchorage Digital Ventures, an unnamed family office, and angel investors also participated


• No investor received board seats, board observer roles, or advisory positions


• Raising began late 2025 and closed early in the third quarter of 2026

How HoneyB generates returns on Bitcoin

HoneyB lets bitcoin holders earn income on their holdings. Users borrow stablecoins — digital currencies tied to the U.S. dollar — using their bitcoin as collateral. Those stablecoins are then invested in a diversified portfolio of traditional assets including U.S. Treasuries, fixed income, credit, gold, volatility strategies, and options.

The underlying investment product targets around 10% annual returns. After borrowing costs and fees are deducted, HoneyB aims to pass through 2% to 4% annualized returns to users on their bitcoin.

Custody is handled by Anchorage Digital and BitGo. The platform runs on Ethereum, Sui, Solana, and Arch Network. Users manage their own loans in either an onchain smart contract or a three-party arrangement involving the borrower, lender, and custodian.

"Actual results depend on strategy performance, borrowing costs and loan-to-value ratios. Returns are not guaranteed," said co-founder and CEO Josh Gordon.

Official product partnerships

The fund behind the first strategy is managed by Simplify Asset Management, a registered investment adviser with about $13.5 billion in assets. Alphaledger manages and tokenizes the fund, and Amber Capital SPC serves as the issuer of the investment product.

Competitors and differentiators

Gordon named Bitwise, Lombard, Solv, and Sentora as competing platforms. He said HoneyB stands out by combining custody, borrowing, and investment services on a single platform. The company also plans to let institutional partners white-label HoneyB's products for their own customers.

Launch timeline and eligibility

HoneyB will launch in the fourth quarter of 2026, starting with institutional investors outside the U.S. who must complete business verification checks. Institutional products for U.S. investors will follow later. A retail product for users in and outside the U.S. is expected in the first quarter of 2027.

Nectar Group plans to use the new capital for product development, custody and financing integrations, legal and compliance work, and distribution. The startup, founded last October, has more than 12 employees and plans to hire in engineering and business development.

What is confirmed

Nectar Group raised $5 million at a $30 million valuation. The round was led by Portal Ventures. HoneyB targets 2% to 4% annualized returns for institutional users outside the U.S. with a planned Q4 2026 launch. Simplify Asset Management manages the underlying fund.

What is still unclear

The article does not disclose exact dates beyond quarters, nor does it confirm whether the Q4 2026 launch will proceed as planned. Returns are described as targeted, not guaranteed.

Why this matters

Bitcoin is one of the largest digital assets, but options for earning income on it remain limited. Platforms like HoneyB aim to bridge bitcoin holders with traditional income-generating strategies, offering a new way for institutions to put idle bitcoin to work.

What happens next

HoneyB plans to launch its first institutional product in Q4 2026, followed by U.S. institutional products and a retail product expected in Q1 2027.

Sources

• The Block