Total amount raised
$201.7 Millions
Latest funding date
7/1/2024
Location
Teamshares has successfully raised funds through multiple rounds, attracting a diverse group of investors including MPower Partners and Nomura. The company is dedicated to transforming small businesses into employee-owned enterprises, aiming to create significant wealth for employees.
Keep reading to delve into the details of Teamshares' funding journey and the investors who are supporting this innovative approach to employee ownership.
What Is Teamshares?
Founded in 2019, Teamshares is an employee ownership platform based in Brooklyn, New York. The company was established by Alex Eu, Kevin Shiiba, and Michael Brown.
Teamshares focuses on transforming small businesses into employee-owned enterprises. They buy businesses from retiring owners and gradually increase employee ownership to 80% over 20 years.
With a team of 101-250 employees, Teamshares provides leadership programs, financial education, and proprietary software to support the transition to employee ownership.
How Much Funding Has Teamshares Raised?
- Seed Round
- Amount Raised: $2.7M
- Date: October 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company's operations and initial development.
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: January 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and expand the team.
- Series D
- Amount Raised: $124M
- Date: August 2023
- Lead Investors: QED Investors
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the model nationally and accelerate product development.
- Debt Financing
- Amount Raised: $75M
- Date: February 2024
- Lead Investors: Sound Point Capital Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and growth initiatives.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: February 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue expanding the employee ownership model.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: July 2024
- Lead Investors: MPower Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further scale operations and enhance product offerings.
Total Amount Raised: $201.7M
Current Valuation: Not publicly disclosed
Key Investors
- QED Investors
- Details: QED Investors is a leading venture capital firm focused on investing in early-stage, disruptive financial services companies. Founded by Nigel Morris and Frank Rotman, the firm has a strong track record in the fintech sector.
- Investment Focus Areas: Fintech, financial services, technology.
- Notable Investments: Credit Karma, SoFi, Avant.
- Inspired Capital
- Details: Inspired Capital is a venture capital firm founded by Alexa von Tobel and Penny Pritzker. The firm focuses on supporting early-stage companies with transformative potential.
- Investment Focus Areas: Fintech, consumer, enterprise software.
- Notable Investments: Chief, Orum, Finix.
- Khosla Ventures
- Details: Khosla Ventures is a venture capital firm founded by Vinod Khosla. The firm invests in innovative technology companies across various sectors.
- Investment Focus Areas: Clean technology, healthcare, artificial intelligence.
- Notable Investments: DoorDash, Square, Impossible Foods.
- Spark Capital
- Details: Spark Capital is a venture capital firm that partners with entrepreneurs to build disruptive, market-leading companies. The firm was founded by Santo Politi and Todd Dagres.
- Investment Focus Areas: Consumer internet, media, software.
- Notable Investments: Twitter, Slack, Oculus.
- Union Square Ventures
- Details: Union Square Ventures is a venture capital firm that invests in internet services that create large networks. The firm was founded by Fred Wilson and Brad Burnham.
- Investment Focus Areas: Internet services, blockchain, fintech.
- Notable Investments: Twitter, Etsy, Coinbase.
What's Next for Teamshares?
Teamshares stands at the cusp of a significant opportunity, poised to scale its employee ownership model across the nation. With $245 million in venture capital, the company aims to expand its market presence and develop new financial products, including a neobank and insurance offerings. This growth potential is underscored by their impressive revenue increase from $10 million in 2021 to over $400 million in 2023.
Future fundraising appears promising, with continued support from prominent investors like QED Investors and Inspired Capital. However, challenges such as integrating new leadership and ensuring smooth transitions to employee ownership remain. Navigating these hurdles will be crucial as Teamshares continues to grow and innovate in the employee ownership space.
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