Honey's investors are celebrating 300x returns after it sold to PayPal - Business Insider

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Honey faced rejection from VCs for 2 years before a group of seed investors put in $1.8 million. Now some are celebrating 300x returns after it sold for $4 billion.

Honey, a startup that makes a browser extension for online shopping, just. It is the payments company's largest-ever acquisition, and the purchase means an exorbitant payout for Honey's investors. Founded in 2012 by George Ruan and Ryan Hudson, the startup had raised $47 million in venture capital from several lesser-known firms, including Mucker Capital, Ludlow Capital, Wonder Ventures, and Bam Ventures.

At the same time, Honey was looking to get into payments, said William Hsu, a venture capitalist and early investor in Honey. But it would take years to build a credit card product and partner with a bank. A partnership with PayPal gives them "everything in a box," Hsu said.

Still, people flocked to Honey. The app collected hundreds of of thousands of users, who often heard about Honey from someone else. The founders returned to Hsu's office about two years later, after Honey's graduation from a startup accelerator in Los Angeles. And Hsu leapt at the opportunity to invest.

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PayPal is buying deal-finding service Honey for $4 billion, its biggest acquisition everPayPal said Wednesday that it's buying Honey Science, which is best known for a tool that helps consumers find deals while they shop online.
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