Baton Secures $10 Million Series A Funding to Transform Small Business Transactions

Baton Secures $10 Million in Series A Funding

Baton, a pioneering marketplace dedicated to facilitating the actions of small and medium-sized business (SMB) acquisitions, has successfully raised $10 million in its Series A funding round, which was spearheaded by Obvious Ventures. This notable milestone brings Baton's total funding to $15.5 million, showcasing the company's rapid growth and ambition to reshape the landscape of small business sales in the United States.

The funding round saw participation from notable investors, including Burst Capital, FJ Labs, Fluent Ventures, and former Zillow CEO Spencer Rascoff via 75 Sunny, among others. This financial injection will propel Baton's mission forward as it continues to develop its comprehensive marketplace, aimed at connecting business owners with potential buyers more effectively than ever before.

As a significant portion of the American workforce transitions toward retirement, particularly among baby boomers, estimates predict that about $10 trillion in small business assets will exchange hands over the next decade. Frequently referred to as the Silver Tsunami, this trend presents an unprecedented opportunity for young entrepreneurs eager to establish their presence in the business realm, particularly in the wake of COVID-19, which has transformed workplace dynamics.

Yet, despite the promising landscape, challenges persist. Existing listing platforms often feature inferior quality entries, rife with inaccuracies, incomplete information, and insufficient support for buyers after initial contact. Baton differentiates itself with a 10-times higher success rate than traditional methods, closing 70% of its transactions efficiently.

What truly sets Baton apart is its dedication to leveraging technology to enhance the efficiency and reduce the costs associated with business sales by 50% compared to conventional solutions. According to CEO and co-founder Chat Joglekar, the Baton team comprises individuals with firsthand experience in family businesses, allowing them to provide a supportive environment for sellers throughout the sale process.

The initial step for business owners begins with a free valuation that scrutinizes their finances, market trends, and industry benchmarks. Additionally, they can access a free Private Listing to gauge buyer interest without any upfront financial commitment. Clients who opt for paid plans can enjoy a robust listing service that incorporates reconciled financials and a tailored data room, guiding them smoothly through buyer engagement, negotiations, and closing—often within half of the time required in traditional sales.

Baton’s expansive reach spans all 50 states, inviting buyers to appreciate the high quality of listings and expedite their underwriting process. The platform has established partnerships with various lenders, accountants, lawyers, and other key professionals, which further streamline transactions and offer both buyers and sellers specialized guidance.

James Joaquin, Co-founder of Obvious Ventures, stated, “We identified Baton as a leading platform in business ownership transfer and we’re thrilled with its commitment to making small business ownership accessible to all. Small businesses are a fundamental aspect of the U.S. economy.”

The effectiveness of Baton's model is illustrated by success stories like that of Gus Reckel, who recently sold his beloved French bakery and café, L'imprimerie, in New York City. He expressed gratitude for the ease and support provided by the Baton team throughout his journey, ensuring his business legacy would continue as he transitioned to retirement.

With the infusion of fresh capital, Baton is poised to further refine its marketplace, facilitating a smoother and more efficient journey for both business sellers and aspiring entrepreneurs alike.

For further information or to access their services, visit Baton's website.

Baton is revolutionizing SMB transactions with a notable 10X higher success rate compared to previous solutions, showcasing its commitment to supporting small business sales.