Nectar Group raises $5 million for bitcoin yield platform HoneyB

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Nectar raises $5M for HoneyB

Highlights

Nectar Group raised $5 million in a seed round led by Portal Ventures at a $30 million post-money valuation, using a SAFE with a one-for-one token warrant.
HoneyB, targeting institutional investors outside the U.S., will launch in Q4 2026 and require business verification checks prior to access.
HoneyB expects to offer annual returns of 2% to 4% on bitcoin holdings after fees, utilizing income strategies tied to U.S. Treasuries and managed by Simplify Asset Management.

Seed funding structure and launch plan

As reported by The Block, Nectar Group says it has raised $5 million in a seed funding round led by Portal Ventures, with participation from Peer Venture Partners, Anchorage Digital Ventures, an unnamed family office and angel investors. Co-founder and CEO Josh Gordon says the startup began raising the round at the end of the fourth quarter of 2025 and closed it at the start of the third quarter of 2026.

The round is structured through a simple agreement for future equity, or SAFE, with a one-for-one token warrant, Gordon says. He adds that the company raised the capital at a $30 million post-money valuation and that none of the investors received board seats, board observer roles or advisory positions.

HoneyB plans to launch in the fourth quarter of 2026, with its first product offered to institutional investors outside the U.S. Investors will need to complete business verification checks before gaining access.

Bitcoin yield model and market positioning

HoneyB is being built to help bitcoin holders earn income on their holdings by using bitcoin as collateral to borrow stablecoins, which are then allocated to income strategies tied to U.S. Treasuries, fixed income, credit, gold, volatility and options. Gordon says the bitcoin collateral can be held through an onchain smart contract or through a three-party arrangement involving the borrower, lender and custodian.

According to Gordon, Anchorage Digital and BitGo serve custodial clients, while HoneyB also has infrastructure across Ethereum, Sui, Solana and Arch Network. He says the underlying investment product aims to generate around 10% annual returns, while HoneyB targets annual returns of about 2% to 4% on users' bitcoin holdings after borrowing costs and fees, while noting that returns are not guaranteed.

The first strategy uses a fund that gives access to a diversified portfolio from Simplify Asset Management, a registered investment adviser that manages about $13.5 billion. Alphaledger manages and tokenizes the fund, while Amber Capital SPC is the issuer of the investment product, Gordon says.

In our earlier article on the Q3 2026 cybersecurity funding surge, we highlighted how total investment climbed to $6.8 billion even as the number of deals fell, signaling investors’ preference for fewer, larger rounds. We also noted that AI- and identity-security companies captured much of the capital, alongside heightened M&A activity as well-funded players pursued consolidation.

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