Collective raises $100M to run the finances of one-person businesses

San Francisco startup Collective , which handles the finances of one-person businesses, has raised $100M. The money comes in two parts: a $40M Series B and $60M from General Catalyst’s Customer Value Fund.

General Catalyst, QED Investors and Gradient Ventures led the Series B, with Intuit Ventures, FT Partners and SemperVirens also investing.

The Customer Value Fund works differently from a normal investment: it pays for a company’s customer acquisition and is repaid from the revenue those customers bring in.

Collective is aimed at freelancers, consultants, and other people who run a business alone. These owners often juggle separate tools for bookkeeping, payroll and taxes, or pay an accountant to do it.

Collective tries to replace all of that with one service. It sets up the company, keeps the books, sends invoices, runs payroll, and prepares and files taxes. It also offers business and health insurance. AI does much of the work in the background, and the company says it answers half of all support requests without a human.

“Traditional accounting firms scale by adding people. Collective scales with intelligence,” said Hooman Radfar, Collective’s co-founder and chief executive.

Collective says it is growing 127% a year and has saved its members about $350m in taxes so far. Its highest earners save up to $40,000 a year, the company added. It did not disclose its revenue or number of customers.

General Catalyst said that is what drew the Customer Value Fund. “We look for companies with high-quality unit economics and a large market opportunity,” said Pranav Singhvi, who co-leads the fund.

The startup is betting that AI will create many more large one-person companies. The US has about 30 million businesses with no employees. Stripe data shows the number of solo founders earning more than $1m a year more than doubled between 2023 and 2025.

Radfar launched Collective in 2020 with Ugur Kaner and Bugra Akcay. It raised a $20m Series A led by General Catalyst in 2021 and a further $50m in 2023.

Its earlier backers include Ashton Kutcher’s Sound Ventures and Figma’s Dylan Field. Intuit, the maker of QuickBooks and TurboTax, has now joined through its venture arm. The new money will go into marketing and into new banking and insurance products.

Collective joins a crowded field of AI finance tools. This week, Hyphenate raised $45m for agents that run company finances, while Black Ore launched an AI tax tool for small accounting firms.