Collective raises $100M to build the financial OS for solo businesses

Collective has announced $100 million in new funding: 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. Intuit Ventures, FT Partners and SemperVirens also joined the Series B. The Customer Value Fund pays for customer acquisition and is repaid from the revenue those customers bring in. The release gives no valuation.

The San Francisco company, led by co-founder and CEO Hooman Radfar, runs the back office for one-person businesses: entity setup, bookkeeping, invoicing, payroll, tax preparation and insurance, with AI doing much of the work. It has served more than 16,000 businesses.

Collective reports ARR growing 120% year over year and about $350 million in estimated tax savings for its members. The money goes to customer acquisition and to new banking and insurance products.