Ethix360 recently raised $1 million in debt funding through current investors, co-founder J Rollins said in an interview.
The Matthews-based compliance software startup, founded three years ago by Rollins and Bob Latchford, filed the convertible note on Tuesday.
Rollins said the money will be used to expand operations and hire developers. Before Ethix360 filed for this round of funding, Rollins said they'd been working on a venture capital equity round.
"We were closing on our A Round for expansion of development and sales and marketing," he said. "Right as we were wiring the money, crap hits the fan on coronavirus, resulting in funds being delayed."
Rollins said the company moved forward with the convertible note, which is debt that will convert to equity, instead.
"Once the world settles down a little, we'll go back and open our A Round back up," he said, "We're still actively hiring. We're growing revenue and we're growing our company."
Ethix360 has clients ranging in size from just a handful of employees up to 500,000, Rollins said. The software is used by companies in 60 countries all over the world.
