Report: Benjamin's Desk Close To Merging With D.C. Incubator 1776
Though the structure of the deal is still fluid, Benjamin's Desk investors would likely absorb 1776 within its own structure, while retaining the ability to use 1776's branding, the Washington Business Journal reports. 1776 co-founder and CEO Evan Burfield strongly denied the report.
If the deal is finalized, it would reportedly prompt investors in both companies to pump more money into the project. 1776 has been operating at a deficit since its inception — not uncommon for startups, but moves like divesting from its location in San Francisco and decreasing bonuses belie a cash shortage.
Benjamin's Desk continues to expand in Philadelphia, with six open locations and more on the way. It already has a partnership with 1776, connecting the latter's network of investors to its members. The software platform that 1776 created to do so, called Union, would reportedly be spun off as its own company after the merger.
The merger is expected to close in October, after which point it is unclear what will become of 1776's locations in and around D.C., as well as branches in New York and Dubai.