Common Trust, a San Francisco-based employee ownership buyout platform, has raised $2.6 million in seed funding to help small business owners transition their businesses to employee ownership. The round was led by Crossbeam Venture Partners with participation from Schmidt Futures and other investors. Founded in 2022 by Zoe Schlag and Derek Razo, Common Trust provides a financing platform that helps selling owners and management design a customized employee ownership trust, access aligned capital to finance the buyout, and implement a successful transition. The company's mission is to empower small business owners to transition their businesses to employee ownership, which can create a more sustainable and equitable future for their employees and communities.
Common Trust plans to use the funds from this round to expand its operations and reach more small businesses. The company is also developing new tools and resources to help small business owners navigate the employee ownership transition process. Employee ownership is a growing trend in the United States, with more and more small businesses transitioning to this model. There are many benefits to employee ownership, including increased employee engagement, productivity, and retention. Employee-owned businesses are also more likely to be sustainable and equitable.
Common Trust is a leading player in the employee ownership space, and its seed funding round is a testament to the growing demand for this type of solution. The company is well-positioned to help more small businesses transition to employee ownership and create a more sustainable and equitable future for their employees and communities.
