Collective has secured US$100 million in financing, comprising a US$40 million Series B and a separate US$60 million growth facility. The equity round was led by General Catalyst, QED, and Gradient Ventures. The San Francisco-based company helps solo business owners manage accounting, taxes, and other financial tasks.
Funding details
Intuit Ventures, FT Partners, and SemperVirens also participated in the Series B. General Catalyst's Customer Value Fund provided the separate growth facility. The facility will support customer acquisition rather than form part of the equity round.
Business growth
Collective is led by co-founder and CEO Hooman Radfar. The company reports 120% year-over-year growth in annual recurring revenue. It estimates that its members have saved a combined US$350 million in taxes to date.
How the platform works
Collective combines business formation, bookkeeping, invoicing, payroll, and tax services in one platform. It also offers access to business insurance and health coverage options. Its AI tools automate financial workflows, while the company reports resolving 50% of support requests without human intervention.
Collective plans to use the new financing to expand its banking and insurance offerings. It also aims to accelerate development of its AI-powered financial tools. The company will use the growth facility to reach more self-employed entrepreneurs across the United States.