Collective has raised $100 million in new financing to accelerate development of its AI-native financial operating system for solo entrepreneurs and expand into banking and insurance products.
The financing includes a $40 million Series B led by General Catalyst, QED Investors, and Gradient Ventures, with participation from Intuit Ventures, FT Partners, and SemperVirens. Collective also secured a $60 million growth facility from General Catalyst’s Customer Value Fund to support customer acquisition.
Collective is focused on what it calls Businesses-of-One, a segment that now includes approximately 30 million solo businesses in the United States. The company combines AI with financial infrastructure to automate work that independent operators would otherwise manage across separate bookkeeping, payroll, tax, invoicing, insurance, and entity-formation systems.
Its platform handles business setup, expense categorization, account reconciliation, invoicing, payroll, tax preparation and filing, ongoing tax optimization, business insurance, health insurance access, and customer support. Collective said its AI-powered support operation resolves about 50% of requests autonomously while maintaining a 4.5-star satisfaction rating.
The company reported annual recurring revenue growth of 120% year over year. Collective also said its platform has helped solo business owners save an estimated $350 million in taxes to date, with some of its highest-income members saving as much as $40,000 annually.
The funding arrives as AI lowers the barriers for individuals to operate businesses that historically required larger teams. Collective cited data showing that the number of solo operators generating $1 million annually doubled between 2023 and 2025, while those generating $10 million tripled.
Collective plans to use the new capital to deepen automation across the financial stack while building additional banking and insurance capabilities, with the broader goal of giving individual business owners access to functions traditionally associated with a corporate finance department.
KEY QUOTES:
“AI is leveling the playing field, making it possible for a single individual to build a powerful, highly profitable enterprise. 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.”
Hooman Radfar, Co-Founder And CEO Of Collective
“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.”
Pranav Singhvi, Partner And Co-Head Of CVF At General Catalyst
