London-based document collaboration firm Workshare has secured $8.4 million in venture debt from Wells Fargo Capital Finance.
The money is to be repaid within four years but in flexible instalments.
Alternative funding
Rather than raising funding in return for equity, Workshare has chosen to use the increasingly popular venture debt model instead.
The money comes in the form of revolving credit facility, where – much like a credit card – the money can be repaid in any number of instalments.
The pricing of venture debt generally reflects the risk to the lender, as Barclays’ Juliet Rogan, Banking Doctor in the Tech City News Startup Surgery, explains.
Role-reversal
Workshare is a secure file sharing and document collaboration platform for enterprises.
It’s used by more than 2 million people, from over 62% of the Fortune 1000.
Originally based in San Francisco, Workshare was acquired by British startup SkyDox in 2012.
SkyDox CEO Anthony Foy merged the two companies under Workshare’s brand, but told Tech City News it was a “no-brainer” to choose London as the location for the new headquarters.
The merger was followed by a $33.8 million funding round from Business Growth Fund and Scottish Equity Partners.