San Francisco-based fintech company Collective has secured $100 million in new financing, comprising a $40 million Series B round and a separate $60 million growth facility from General Catalyst’s Customer Value Fund.
The Series B was led by General Catalyst, QED Investors and Gradient Ventures, with participation from Intuit Ventures, FT Partners and SemperVirens. The $60 million facility will support customer acquisition, while the new financing will also help Collective expand its banking and insurance offerings.
Founded in 2020 by Hooman Radfar, Uğur Kaner and Bugra Akcay, Collective provides a financial management platform designed for self-employed professionals, freelancers and solo entrepreneurs. Radfar serves as the company’s CEO.
The platform integrates business entity formation, bookkeeping, accounting, invoicing, payroll, tax preparation and filing, and access to business and health insurance services. It uses AI to automate financial and administrative tasks, allowing independent business owners to manage multiple aspects of their operations through a connected system.
Collective reported that its annual recurring revenue is growing 120% year over year. The company also estimates that its members have collectively saved approximately $350 million in taxes through its services.
The funding follows Collective’s earlier $50 million financing round announced in July 2023, which supported investment in its financial platform and the expansion of AI capabilities.
The latest financing will support Collective’s continued development of financial services for one-person businesses, including planned product expansion in banking and insurance.
