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§ Private Profile · Brooklyn, NY, USA
Teamshares is a technology company.
Teamshares operates an employee ownership platform for small businesses, acquiring companies from retiring owners and transitioning them to employee stock ownership. It leverages proprietary software, educational tools, and financial products to support this model, ensuring business continuity and improved financial outcomes through aligned incentives for all stakeholders. This structure provides a permanent home for businesses that might otherwise cease operations.
Co-founded in 2019 by Michael Sutherland Brown, Alex Eu, and Kevin Shiiba, Teamshares originated from the insight that a significant number of small businesses fail to find buyers upon owner retirement, often leading to closures. The founders recognized this market inefficiency presented an opportunity to offer a structured solution for business succession while simultaneously fostering employee wealth creation and preserving local enterprises.
The platform primarily serves retiring small business owners seeking a reliable exit strategy and employees who accrue stock ownership through their continued service. Teamshares also recruits and supports leaders for these employee-owned entities, providing operational guidance. Its overarching vision is to establish employee ownership as the prevalent and sustainable future business model, fostering local economic strength and shared prosperity.
Teamshares has raised $195.0M across 2 funding rounds.
Teamshares has raised $195.0M in total across 2 funding rounds.
Teamshares has raised $195.0M across 2 funding rounds. Most recently, it raised $75.0M Debt in February 2024.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Feb 1, 2024 | $75M Debt Financing | Philip Bartow | — | Announced |
| Aug 1, 2023 | $120M Series D | QED Investors | Amasia, AngelList, Ardent Venture Partners, Beenext, Blossom Capital, Cherubic Ventures, Expa, General Catalyst, Gradient Ventures, Insight Partners, Jared Hecht, MUFG Innovation Partners, Sound Ventures, SV Angel, Tiger Global Management, Union Square Ventures, Aaron Levie, Adrian Aoun, Dylan Field, Eddie Hartman, Eric WU, Gokul Rajaram, Jenna Hannon, Kevin LIN, Kunal Shah, Saturnin Pugnet, Scott Belsky, Steve Chen, Vivek Patel, Inspired Capital, Khosla Ventures, Slow Ventures, Spark Capital | Announced |
Teamshares is a technology-enabled platform that acquires small businesses from retiring owners and transitions them to majority employee ownership using proprietary software, financial education, and tailored products.[1][2][3][5] The company targets businesses with $0.5-5 million in revenue, immediately granting employees 10% stock upon acquisition and scaling to 80% employee ownership over 20 years, while installing new leadership to ensure longevity without resale.[1][5][6] As of recent data, Teamshares has acquired 90 companies across 42 industries in 29 states, generating over $400 million in annual revenue and creating ownership for over 2,100 employees, positioning it as the market leader in small business employee ownership.[1][2][3]
Serving retiring owners, existing employees, and local communities, Teamshares solves the crisis where 70% of small businesses fail to sell upon owner retirement, preserving jobs, legacies, and economic stability.[6] With 140 employees across the U.S. and Canada, it has raised $245 million in venture capital from firms like QED, Spark Capital, and Khosla Ventures, plus $225 million in debt, fueling growth toward 150+ acquisitions.[2]
Teamshares was founded in 2019 by Michael Brown (CEO, with small business operations experience), Alex Eu (President, small business investor), and Kevin Shiiba (CTO, tech product background), who combined expertise in operations, investing, and software to address small business succession failures.[2][5] The idea emerged from recognizing that retiring owners often couldn't sell—70% fail to find buyers—forcing closures that harm employees and communities, prompting a model for permanent, employee-aligned ownership.[1][6]
Early traction built quickly: by July 2023, the company owned 84 businesses with $400 million revenue; it has since reached 90 acquisitions.[1][2][3] Key pivots include scaling via a 70-person tech team for acquisition software and raising significant capital, including a Series D at $500M-$1B valuation.[2]
Teamshares rides the employee ownership trend amid shifting societal preferences for wealth equity, aligning with stakeholder capitalism and addressing the "silver tsunami" of 10 million retiring U.S. small business owners.[3][6] Timing is ideal as 70% of these businesses lack buyers, creating a massive market for tech-driven solutions that preserve 33 million jobs.[6] Favorable forces include VC interest in impact-tech hybrids, rising demand for alternatives to private equity roll-ups, and software's role in scaling fragmented acquisitions.[2]
It influences the ecosystem by pioneering scalable ESOPs for SMEs, building a network of durable local firms, and proving tech can democratize ownership, potentially inspiring policy shifts toward employee-centric models.[1][3]
Teamshares is poised for explosive growth post its November 2025 SPAC merger via Live Oak V, backed by a $126 million T. Rowe Price-led PIPE and $746 million deal valuation, enabling Nasdaq listing and national expansion to 150+ businesses.[4] Upcoming trends like AI-optimized operations and broader fintech products will enhance portfolio efficiency, while regulatory tailwinds for employee ownership could accelerate adoption. Its influence may evolve from niche acquirer to ecosystem builder, redefining small business succession and generating billions in worker wealth—cementing its role as the permanent home for America's entrepreneurial backbone.[1][4][6]
Teamshares has raised $195.0M in total across 2 funding rounds.
Teamshares's investors include Philip Bartow, QED Investors, Amasia, AngelList, Ardent Venture Partners, BEENEXT, Blossom Capital, Cherubic Ventures, Expa, General Catalyst, Gradient Ventures, Insight Partners.