Watershed subsidiary, iShed, was established in 2007 to produce creative collaborations, support new ideas, explore emerging technologies and develop talent. In 2016, iShed was folded into Pervasive Media Studio and renamed iShed Ventures. iShed's portfolio includes commissioning schemes, events, research and consultancy produced through local, national and international partnerships with industry, artists and universities. Its main activities are the Sandbox funding schemes Media Sandbox and Theatre Sandbox. iShed also runs The Pervasive Media Studio, a partnership between Watershed, HP Labs and UWE set up to support interdiscplinary research and development. The Pervasive Media Studio was previously located in the Leadworks building in Anchor Square Bristol until 2011, when it moved to the Watershed building.