SAN FRANCISCO — Collective, a financial operating system for solo businesses, has landed $100 million in new funding. The round includes a $40 million Series B led by General Catalyst, QED Investors, and Gradient Ventures, along with Intuit Ventures, FT Partners, and SemperVirens, alongside a $60 million growth facility from General Catalyst’s Customer Value Fund to fuel customer acquisition. The funding will also be used to accelerate Collective’s product development in banking and insurance.
Artificial intelligence is sparking an unprecedented entrepreneurial renaissance, empowering a solo operator to produce the output of a larger business. The U.S. now has 30 million solo businesses, and their revenue is skyrocketing. According to a recent Stripe report, the number of solo operators generating $1M/year doubled between 2023 and 2025, while those earning $10M/year tripled. However, as these businesses scale, they hit a critical bottleneck: the back office. Solo operators are forced to stitch together a patchwork of disconnected software for bookkeeping, payroll, and taxes, all while paying high fees to traditional CPAs. Instead of focusing on growth, owners lose hundreds of hours to administrative tasks, while missing out on critical tax savings.
“Collective has been an absolute godsend,” said Eddy Adams, a Graphic Designer who uses Collective. “Working as a self-employed designer, I can offload most of my tax responsibilities and focus on my daily workload. Through the s-corp setup, I also save tens of thousands of dollars in taxes every year. Their service pays for itself!”
Collective eliminates this friction by delivering an AI-native, full-stack financial operating system for solo businesses. Rather than giving business owners more software to operate, Collective’s platform does the work in the background by combining AI with financial infrastructure to autonomously anticipate, coordinate, and execute workflows.
Key features include:
- Business Setup: Automates entity formation (LLC, etc) to ensure optimal legal and tax structures.
- Accounting: Bookkeeping that categorizes expenses and reconciles accounts.
- Invoicing: Eliminates administrative busywork through streamlined invoicing tools.
- Payroll: Simplifies salary processing to ensure owners maximize tax savings compliantly.
- Taxes: Autonomous tax preparation, filing, and ongoing optimization to maximize savings.
- Business Insurance: Offers integrated coverage options to protect owners from liability and risk.
- Health Insurance: Connects solo founders with instant, affordable health coverage options.
- Support: World class human support team powered by AI to resolve 50% of support requests autonomously while maintaining 4.5 star satisfaction.
“AI is leveling the playing field, making it possible for a single individual to build a powerful, highly profitable enterprise,” said Hooman Radfar, co-founder and CEO of Collective. “Traditional accounting firms scale by adding people. Collective scales with intelligence. Every workflow we automate and every part of the financial stack we bring onto the platform increases what Collective can do for our members. We’re building toward a world where a Business-of-One can access the financial capabilities of a much larger company without having to build the team behind it.”
