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

wework founders


WeWork cofounders Miguel McKelvey and Adam Neumann

WeWork is raising a $750 million round of debt financing, according to The New York Times.

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.
WeWork first opened its doors to New York City entrepreneurs in April 2011.

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.

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.By the end of 2015, WeWork plans to have 58 locations open. "We want to be everywhere and serve everyone, so as we expand globally we are welcoming more and more WeWork Commons members to our community-members who don't always need dedicated physical space, but who stay connected digitally through our app and have access to our services," WeWork CEO Adam Neumann told Business Insider last month.

Read the full New York Times report here >>