Oneteam, a Singapore-based startup dedicated to transforming succession at small and medium-sized enterprises (SMEs) through employee ownership, has closed its S$3.5 million ($2.61 million) seed round.

The round was led by Wavemaker Ventures, the early-stage fund of Wavemaker Partners, Southeast Asia-based VC group investing in enterprise, deep tech, and sustainability startups, the company said in a statement on Wednesday.

Oneteam addresses a pressing issue in Singapore’s SME sector: the lack of succession planning.

According to the Singapore Department of Statistics, SMEs make up over 99 percent of the country’s more than 300,000 enterprises and employ more than 70 percent of its workforce.

Yet, as owners of these businesses approach retirement, many of them face uncertain futures, often lacking an exit strategy and a clear succession plan.

Oneteam aims to bridge this gap by acquiring businesses from retiring owners and over time, transitioning them into employee-owned entities.

This succession model not only creates long-term value for the businesses and their employees but also promotes a deeper sense of ownership, purpose, and productivity.

Founded by ex-investment bankers with deep experience in startups and small local businesses, Oneteam brings a unique blend of strategic insight and operational expertise to the table.

The leadership team’s vision is to “Reward One Generation of Business Owners and Empower the Next,” by retaining jobs, preserving business legacies, and positioning the next generation of employees as co-owners of the businesses they help build.

“We believe the future of SMEs lies in the hands of their employees,” said Kevin Boo, CEO and Co-founder of Oneteam.

“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. In doing so, we’re also contributing to Singapore’s broader goal of elevating our SMEs, the backbone of our economy.”

Oneteam’s model extends beyond acquisitions. The company offers a holistic support system for its portfolio businesses, including growth capital, leadership development, and access to a wide ecosystem of business partners and digital solutions. These resources are designed to help companies scale efficiently and integrate modern technologies.

With this fresh funding, Oneteam plans to deploy approximately 70 percent toward acquiring small businesses.

The remaining funds will support the development of a robust core team and infrastructure that will provide shared services for its portfolio.

Key business functions such as finance, human resource and talent recruitment, branding and marketing, IT, and legal, which can be costly for small businesses, will be provided out of the company’s headquarters.

“Oneteam’s approach to transforming the SME space is both timely and visionary. 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,” said Joel Ang, Investment Principal at Wavemaker Ventures.

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