Collective Raises $100M for Solo Business AI Platform

Collective has raised $100 million in new funding for its AI-native financial operating system for Businesses-of-One. The funding includes a $40 million Series B led by General Catalyst, QED Investors, and Gradient Ventures, plus a $60 million growth facility from General Catalyst’s Customer Value Fund. Collective says its platform brings business setup, accounting, invoicing, payroll, taxes, insurance, and support into one service for solo entrepreneurs. The company will use the funding for customer acquisition and product development in banking and insurance.

Financial Tasks In One Platform

Collective is designed for solo business owners using separate software and traditional CPAs for bookkeeping, payroll, and taxes. Its tools include entity formation, expense categorization, account reconciliation, invoicing, salary processing, tax preparation and filing, business insurance, health insurance options, and AI-powered support.

“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!”

Funding Supports Product Development

Intuit Ventures, FT Partners, and SemperVirens also participated in the funding round. Collective says its support team, powered by AI, resolves 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.”

Growth Among Solo Businesses

Collective says its ARR is growing 120% year-over-year and that it has saved solopreneurs an estimated $350 million in collective taxes. For Collective’s highest income earners, owners are saving up to $40,000 per year in taxes. A recent Stripe report found that the number of solo operators generating $1M/year doubled between 2023 and 2025, while those earning $10M/year tripled.

“With CVF, we look for companies with high-quality unit economics and a large market opportunity. We see solo businesses as one of the most dynamic segments of the economy, and we expect that trend to accelerate as AI advances. Collective has built a one-stop shop for their financial needs. Their vision and track record make Collective exactly the kind of company CVF was designed for.”

A Financial Service For Solopreneurs

Collective’s service is aimed at solo business owners seeking help with financial and administrative work. Solo business owners can learn more through Collective’s website.