Collective Raises $100M for Full-Stack AI Financial OS Powering the Solopreneur Revolution
Collective, the AI-native financial operating system for Businesses-of-One, led by Hooman Radfar, Ugur Kaner, and Bugra Akcay, has announced $100 million in new funding to accelerate its mission of building the agentic financial OS for solo entrepreneurs. The round includes a $40 million Series B led by General Catalyst, QED, and Gradient Ventures, along with Intuit Ventures, FT Partners, and SemperVirens, alongside a $60 million growth facility from General Catalyst’s Customer Value Fund to fuel customer acquisition. The funding will also be used to accelerate Collective’s product development in banking and insurance.
Solo Businesses Face Growing Back-Office Challenges.
AI is driving a new wave of entrepreneurship, enabling individual operators to deliver the output of much larger businesses. The U.S. now has 30 million solo businesses, with the number of solo operators generating $1 million annually doubling between 2023 and 2025, while those earning $10 million tripled, according to Stripe.
However, growth brings increasing back-office complexity. Solo operators often rely on disconnected tools for bookkeeping, payroll, and taxes, while paying high fees to traditional CPAs. These administrative demands consume hundreds of hours that could otherwise be spent growing the business, while leaving potential tax savings overlooked.
"Collective has been an absolute godsend,” said Eddy Adams, a Graphic Designer who uses Collective. “Working as a self-employed designer, I can offload most of my tax responsibilities and focus on my daily workload. Through the s-corp setup, I also save tens of thousands of dollars in taxes every year. Their service pays for itself!"
Collective’s Solution: An AI-Native Financial Operating System.
Collective is building a full-stack, AI-powered financial operating system for solo businesses. Instead of adding more software for owners to manage, the platform combines AI and financial infrastructure to automate and coordinate back-office operations.
Key features include:
Business Setup: Automates LLC formation and helps establish suitable legal and tax structures.
Accounting: Handles bookkeeping, expense categorization, and account reconciliation.
Invoicing: Streamlines invoicing and reduces administrative work.
Payroll: Automates salary processing while helping owners maximize compliant tax savings.
Taxes: Supports tax preparation, filing, and ongoing tax optimization.
Business Insurance: Provides integrated coverage options for liability and business risks.
Health Insurance: Connects solo founders with affordable health coverage.
AI-Powered Support: Combines AI automation with human assistance, autonomously resolving 50% of support requests while maintaining a 4.5-star satisfaction rating.
“AI is leveling the playing field, making it possible for a single individual to build a powerful, highly profitable enterprise,” said Hooman Radfar, co-founder and CEO of Collective. “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.”
Collective Scales as a Financial Platform for Solo Businesses.
Collective has emerged as a leading financial platform for solo businesses, with annual recurring revenue (ARR) growing 120% year-over-year.
The company estimates that its platform has collectively saved solopreneurs $350 million in taxes. Its highest-earning customers are saving up to $40,000 annually, highlighting the financial impact of bringing advanced tax optimization tools to individual business owners.
“With CVF, we look for companies with high-quality unit economics and a large market opportunity,” said Pranav Singhvi, Partner and co-head of CVF, General Catalyst. “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.”
