At Convene, we’ve always been focused on serving our customers in more places and in more ways. Fueling our disciplined growth takes the continued dedication and passion of our team members, trust from our partners, and new capital to finance future projects.
We recently spoke with Business Insider about our financials, our path to profitability, and our unit economics, and today, we are pleased to announce that we have finalized a commitment to secure a $150 million credit facility.
This is a big milestone for the company, which will provide us with adequate liquidity to execute our business plan without needing additional capital in the near future. Most importantly, it further validates investor confidence in the long-term viability and profitability of our business model.
The financial institutions we’ve partnered with for this credit facility are some of the most prominent and trusted names in the world—Goldman Sachs, Morgan Stanley, and Barclays. With this new financing, we’ll be able to supercharge our progress towards four important business goals:
Growing our footprint in two to three new markets in 2020
One of the biggest opportunities (and challenges) ahead for Convene is expanding our physical footprint to bring the products and services our customers love to more cities across the globe. While this allows us to serve new clients, it also increases our value proposition for our existing clients who will soon have a trusted partner in a location where they are doing business. We have some exciting new opportunities in the works and can’t wait to share where we’ll be going next.
Expansion of our strategic partnerships
One of the biggest reasons Convene has grown over the last 10 years is because we are a strategic operating partner for commercial landlords looking to increase the value of their assets by delivering hospitality services and flexible space solutions to their tenants. In the past year, we have expanded our suite of best-in-class amenities at our locations by executing new partnerships with innovative companies like Eden Health, an on-site primary healthcare provider, and Hydra Studios, a fitness and wellness studio.
These amenities help progressive organizations attract and retain talent, while bringing value to all tenants in the buildings where Convene is located. The credit facility will enable us to explore additional partnerships with values-aligned companies in order to create the best workday possible for our members and building tenants.
Investing in our technology infrastructure
There’s a lot that goes on in the background to provide the highest standard of service our customers around the world have come to know and expect from Convene. Our technology infrastructure plays a large role in the seamless experience of accessing a Convene space, ordering restaurant-style cuisine from the Convene Kitchen, or booking meeting rooms with the click of a button. In the past year, we’ve made major investments in the growth of our technology team, and we intend to continue bringing on new talent and building new tools to ensure our clients to have their best workday experience. In the future, our technology platform will be leveraged by building owners to better connect tenants to Convene’s spaces, services, and amenities creating further value for our landlord partners.
Exploring M&A opportunities with values-aligned businesses
We’re always interested in working closely with companies and organizations who share our core values and vision for the future of the WorkPlace. In the past, we’ve used acquisitions as a path to build out new capabilities, add talent and expand our network of offerings in a quick, efficient, and high-quality way. This new financing will allow us to explore more of that when appropriate in the months ahead
The future is bright for our organization, our industry, and we’re thrilled to be equipped to better serve our clients and landlord partners in the coming months.
You can read more about our credit facility in the Wall Street Journal.