Economic Health

Why We Invested In Baton

The next chapter for America's small businesses

James Joaquin | 01/21/2025

Across America, millions of small business owners are approaching retirement with no clear path to selling their business. The local diner that’s been serving the community for decades, the family-run hardware store that knows everyone by name, the neighborhood dry cleaner that has been pressing your shirts for years— they all face an uncertain future.

Over the next 10-15 years, more than 70% of America’s 33 million small businesses will change hands as their Baby Boomer and Gen X owners retire. Yet the traditional way of selling these businesses—through local brokers charging hefty fees of 8-20%— isn’t built to handle this “silver tsunami” of transition.

Enter Chat Joglekar and Dylan Gans, two entrepreneurs who saw an opportunity to revolutionize this market. Their company, Baton, is reimagining how small businesses are sold through an online marketplace that connects sellers and buyers nationwide. 

We’re proud to lead Baton’s $10 million Series A round. At Obvious, we look for companies that combine massive market opportunity with world positive impact. Baton does both. They’re not just building a better marketplace; they’re helping preserve the small businesses that are the backbone of communities across America.

When we first met the Baton team, what struck us wasn’t just their impressive credentials—which included scaling a giant business unit at Zillow, the real estate marketplace— it was their deep understanding of both the human and technical elements of the challenge. They recognized that selling a small business isn’t just a transaction; it’s the culmination of years of hard work and dedication.

In just two years, Baton has built a thriving marketplace powered by AI that allows Baton’s transaction advisors to handle ten times the capacity of traditional brokers. Through intelligent automation of valuations, diligence, and deal flow management, they’re bringing unprecedented efficiency to a historically manual process.

Perhaps most telling are the stories from their customers. With a 4.7 rating on Trustpilot, Baton is earning the trust of business owners at a crucial moment in their entrepreneurial journey. As one recent customer reported: “We ended up with three offers, Baton supported on the negotiations, and then even hand-held the buyer to qualify for financing. Now I’m on to my next chapter in life!” 

By bringing buyers and sellers together on one platform, Baton ensures that sellers get a market price while buyers maximize their choice of opportunities. As millions of small business owners approach retirement in the coming years, Baton is ensuring they can capture the full value of their life’s work while helping a new generation of entrepreneurs take the reins. It’s a mission we’re excited to support, and a story that is just beginning.