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A Monumental Funding Round
Teamshares Inc., a trailblazer in promoting employee ownership within small businesses, has made headlines by raising a whopping $245 million in venture capital. This includes a recent Series D financing of $124 million, showcasing the immense faith and support from the investor community.
From Humble Beginnings to Exponential Growth
In a span of just two years, Teamshares has witnessed an impressive trajectory. The company’s revenue surged from $10 million in January 2021 to over $400 million by July 2023. This growth is mirrored in its impact, with Teamshares bringing employee ownership to 84 small businesses, thereby creating 2,100 new employee owners spread across 29 states and 42 diverse industries.
The Investors Behind the Vision
The Series D round was spearheaded by Frank Rotman at QED Investors. Other notable participants included existing investors such as Inspired Capital, Khosla Ventures, Slow Ventures, Spark Capital, and Union Square Ventures. Their collective belief in Teamshares’ mission and model is evident in their significant financial backing.
Addressing a Market Need
The American small business landscape faces a daunting challenge: a 70% failure rate in finding buyers when owners retire. Teamshares offers a beacon of hope by providing retiring owners with a viable exit strategy that ensures their legacy continues through employee ownership. This not only safeguards the business but also creates stock wealth for dedicated small business employees.
A Business Model with Social Impact
Frank Rotman, Cofounder and Chief Investment Officer of QED Investors, highlighted the unique proposition of Teamshares. He emphasized the alignment of employee ownership with societal shifts, noting that such a model benefits all stakeholders and enhances financial well-being.
Diverse Businesses, Unified Vision
Teamshares’ portfolio is a testament to its versatile model, accommodating a wide range of businesses from various sectors. From auto service businesses in Massachusetts and fast-food chains in Nebraska to architecture firms in Minnesota, Teamshares has successfully integrated its employee ownership model across the board.
A Bright Future Ahead
With the fresh capital infusion, Teamshares is poised to further scale its model on a national level and expedite product development. The company’s commitment to creating $10 billion of new wealth for employees through stock ownership remains unwavering, and with the continued support from its investors and the broader community, Teamshares is set to redefine the future of small businesses in America.
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