MPower Partners Joins Nomura and MUIP in Teamshares Investment

MPower Partners Fund, Japan's pioneering ESG-focused global venture capital firm, has strategically invested in Teamshares, a platform dedicated to employee ownership for small businesses. This move follows earlier investments by MUFG Innovation Partners (MUIP) in February and Nomura in March, underscoring a robust commitment to innovative succession solutions in the small business sector.

Teamshares has successfully introduced its employee ownership model to Japan, with the expectation of establishing its first employee-owned business in the country within the year. The initiative addresses a pressing socio-economic issue prevalent in many developed economies: the challenge of small business succession. Both Japan and the United States face similar dilemmas, where traditional family-based business succession is increasingly rare, and the market for selling small businesses remains difficult. This imbalance has led many business owners to extend their working years well into retirement or, in some cases, cease operations entirely.

Founded in 2019, Teamshares aims to revolutionize small business ownership by fostering a network of 10,000 employee-owned companies and creating $10 billion in stock wealth for employees. The company acquires successful small businesses from retiring owners and transitions them to 80% employee ownership over two decades. This model ensures the creation of financially stable, permanently employee-owned companies that will not be resold, benefiting retiring owners, employees, businesses, and local communities.

To date, Teamshares has acquired over 90 small businesses across 31 states and 42 industries in the U.S., generating more than 2,600 new employee owners. The upcoming establishment of its first employee-owned business in Japan marks a significant milestone in its global expansion.

MPower Partners' growth equity investment in Teamshares aligns seamlessly with the fund's vision of embedding ESG principles into the core strategies of leading market startups. The investment in Teamshares epitomizes a 'Sanpo Yoshi' business model, promoting benefits for small business owners, employees, local economies, and shareholders alike. This alignment underscores the multifaceted value of integrating sustainable and socially responsible practices in business operations, setting a precedent for future investments in the ownership economy.

In summary, the collaboration between MPower Partners, Nomura, and MUIP with Teamshares exemplifies a forward-thinking approach to small business succession and employee ownership. It highlights a growing trend in leveraging ESG principles to create resilient, community-oriented business models, ensuring long-term economic stability and prosperity for all stakeholders involved.