Collective, a San Francisco company that runs the finances of one-person businesses, has announced $100m in new financing. The package is made up of a $40m Series B led by General Catalyst, QED Investors and Gradient Ventures, and a $60m growth facility from General Catalyst's Customer Value Fund. Intuit Ventures, FT Partners and SemperVirens also invested in the Series B. Collective announced the funding on 29 October 2026.
The $60m from the Customer Value Fund is not equity. Tech Funding News reported that the fund pays for a company's sales and marketing spending and takes its return from the revenue of the customers that spending brings in. Collective said it will use that money to acquire customers.
The company did not disclose a valuation.
“Traditional accounting firms scale by adding people. Collective scales with intelligence.”Hooman Radfar, Co-founder and CEO, Collective
What Collective does
Collective offers an AI-powered back office for people who work for themselves. It handles setting up the business, bookkeeping, invoicing, payroll and tax filing. The company says there are about 30 million solo businesses in the US.
In its announcement, Collective said its annual recurring revenue is growing 120% a year. It estimates that members have saved $350m in taxes since it launched, and that its highest-earning members save up to $40,000 a year. AI handles half of support requests on its own, and the company reports a 4.5-star satisfaction rating.
This year Collective bought Open Ledger, an AI accounting start-up, in April and launched an insurance centre in July with partners Coverdash and Solo Health, according to Tech Funding News.
Who is behind it
Hooman Radfar is Collective's co-founder and chief executive. He previously co-founded Clearspring Technologies, which became AddThis and was bought by Oracle in 2016, according to Tech Funding News. Collective launched in September 2020.
Pranav Singhvi, a partner and co-head of General Catalyst's Customer Value Fund, said Collective had built a one-stop shop for the financial needs of solo businesses. Earlier backers include Expa, Sound Ventures, The General Partnership and Better Tomorrow Ventures, as well as individuals such as Nikesh Arora, Ashton Kutcher, Elad Gil, Dylan Field, Garrett Camp and Aaron Levie.
The funding so far
General Catalyst and QED have backed Collective from the start. They led its $8.65m seed round in September 2020 and its $20m Series A in May 2021. In July 2023 the company raised $50m in a round with Gradient Ventures, Innovius Capital, The General Partnership, General Catalyst, QED, Expa and Better Tomorrow Ventures, according to Tech Funding News.
Beyond customer acquisition, Collective said the new money will go into product development in banking and insurance. Radfar has also said the company wants to serve more kinds of businesses, including those with employees.
Collective competes with other AI-first finance services for freelancers and small firms. Tech Funding News named Lettuce Financial, which raised $28m in November 2025, as one rival.
Company website: collective.com