Collective raises $50m to deliver “financial peace of mind” for freelancers
US fintech start-up Collective, which operates an AI-powered back-office platform for freelancers, has secured $50 million in funding.
Collective raises $50m
Investors include Gradient Ventures, Google’s AI fund, Innovius Capital, The General Partnership, General Catalyst, QED, Expa, and Better Tomorrow Ventures, among others.
Launched in 2020, the San Francisco-based start-up’s platform leverages large language models and AI to offer business formation, S-election, payroll, tax and bookkeeping services for solo entrepreneurs, including a personal dashboard for users to manage their finances.
The company claims its members can save an average of $10,000 per year through its offering and reduce the time needed to complete processes such as bank reconciliation (by 70%) and expense categorisation (by 90%).
Hooman Radfar, CEO and co-founder of Collective, believes the Businesses-of-One segment remains underserved by traditional software providers, despite generating $1.4 trillion in revenue.
“Countless entrepreneurial success stories are being held back by paperwork. AI is allowing us to solve that problem faster and help more solopreneurs launch and grow their businesses,” Radfar adds.
With the new funding, Collective plans to accelerate AI deployment across its operations and add new features to its platform including a new bookkeeping dashboard, task tracking, financial insights and more. It also plans to scale its operations to be able to onboard the nearly 100,000 businesses on its waitlist.
The start-up claims to have increased revenue by nearly 10x since its $20 million Series A funding round in 2021, and has raised a total of $82 million in funding to date.
