Collective secures US$100 million to expand finance services for solo businesses
The San Francisco startup plans to put the funding toward marketing and the development of banking and insurance products.
Collective has secured US$100 million through a Series B round and customer-acquisition financing to expand its financial services for one-person businesses. The San Francisco startup plans to use the funds for marketing and new products in banking and insurance.
Of the funding, US$40 million came through the Series B, led by QED Investors, Gradient Ventures and General Catalyst. SemperVirens, Intuit Ventures and FT Partners also participated. General Catalyst’s Customer Value Fund provided the other US$60 million under a model that funds customer acquisition, with repayment coming from those customers’ revenue.
Designed for people working independently, including consultants and freelancers, Collective combines business formation with bookkeeping, invoicing, payroll and tax preparation and filing. Business insurance and health insurance are also available. Artificial intelligence performs much of the background work; separately, Collective says half its support requests receive answers without human involvement.
According to Collective, its annual growth is 127%, and members have achieved tax savings totaling about US$350 million. The company supplied neither revenue figures nor a customer count.
Hooman Radfar, Ugur Kaner and Bugra Akcay launched the business in 2020. Its previous financing included a General Catalyst-led Series A of US$20 million in 2021, followed by US$50 million in 2023. Past backers include Figma’s Dylan Field and Sound Ventures, Ashton Kutcher’s firm.
