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$10 billion WeWork is raising $750 million in debt financing

Nov 3, 2015, 03:50 IST

WeWork cofounders Miguel McKelvey and Adam NeumannWeWork

WeWork is raising a $750 million round of debt financing, .

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The super-hot office rental company, which has raised $969 million in funding at a $10 billion valuation, is the 11th most valuable startup in the world.

The new round of financing comes from Morgan Stanley, Goldman Sachs, JPMorgan Chase, and Deutsche Bank, according to the Times.

In total, WeWork now has 54 coworking spaces in New York, Boston, Philadelphia, Washington DC, Miami, Chicago, Austin, Berkeley, San Francisco, Los Angeles, Portland, and Seattle, with additional international locations in London and Amsterdam, along with new locations in Tel Aviv and Herzliya in Israel.

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WeWork's 30,000 clients range from startups - Business Insider uses a WeWork space out in San Francisco - to big companies like Merck and American Express. Individuals can also buy packages starting at $45 and rent a desk for a day.

WeWork also has its its critics; the company recently settled a dispute over its custodial services. And though WeWork became profitable as of this summer, some skeptics believe its financials may not support its valuation, suggesting it could be part of a new technology bubble.

And there are basic concerns about the sustainability of its business model. WeWork, of course, is an alternative to real estate companies for freelancers and companies. And the real estate business can be risky.

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