Oneteam commits majority of $2.6-million seed round to SME succession planning

Singapore-based startup Oneteam has announced that 70% of the S$3.5 million (approximately $2.61 million) it raised in a recent seed funding round will be used to acquire small businesses, helping them transition to employee-owned entities. 

The funding round was led by Wavemaker Ventures, the early-stage fund of Southeast Asia-focused venture capital group Wavemaker Partners, TechNode Global reported. 

Meanwhile, the remaining funds will go toward building a central support infrastructure for the businesses in Oneteam's portfolio, the company said in a statement. 

Supporting organisational succession 

Oneteam is addressing a critical issue in Singapore's SME landscape: a lack of succession planning. 

Despite comprising over 99% of Singapore's enterprises and employing more than 70% of its workforce, SMEs often face uncertain futures when their owners approach retirement. 

To tackle this, Oneteam acquires businesses from retiring owners and gradually transitions them into employee-owned companies. By empowering employees to become co-owners, the start-up aims to ensure continuity, preserve jobs, and build long-term value for these enterprises. 

"We believe the future of SMEs lies in the hands of their employees," said Kevin Boo, CEO and co-founder of Oneteam, in a statement. 

"By offering a path to ownership for next generation, hardworking employees, we're aligning incentives, preserving valuable services for our communities, and ensuring these businesses continue to thrive." 

Funds towards ‘robust’ team structure at Oneteam

While most of the funds will go toward acquisitions, the rest will be used to develop a robust core team and infrastructure that provides centralised services for its portfolio companies, according to Oneteam. 

These include finance, HR, branding, IT, and legal support, which are often costly and challenging for small businesses to manage independently. 

"Oneteam's approach to transforming the SME space is both timely and visionary," said Joel Ang, investment principal at Wavemaker Ventures, in a statement. 

"By aligning the goals of exiting business owners with the aspirations of a new generation of leaders and employees, Oneteam is poised to not only preserve these businesses but also to propel them to new heights." 

In addition to providing growth capital, Oneteam offers leadership development and access to an ecosystem of business partners and digital solutions. These resources are designed to help acquired businesses integrate modern technologies and scale efficiently, creating a seamless pathway for employee ownership.