US-based collective raises $100m to expand banking, insurance and accounting services

By Divya Shah

Why it matters: The funding reflects growing investor confidence in FinTech solutions for solopreneurs, a rapidly expanding segment seeking integrated banking, tax, accounting and insurance services.

Collective, a US-based financial management platform for solo business owners, secured $100 million in new funding, comprising a $40 million Series B round and a $60 million growth facility.

The Series B round was led by General Catalyst, QED, and Gradient Ventures, with participation from Intuit Ventures, FT Partners, and SemperVirens. The growth facility was funded by General Catalyst’s Value Fund.

Founded in 2020 by Ugur Kaner, Bugra Akcay, and CEO Hooman Radfar, Collective provides an all-in-one back-office management platform designed for what the company describes as the “Business-of-One”.

Its platform combines accounting, bookkeeping, payroll, tax management and financial services, helping solo entrepreneurs simplify and automate administrative tasks.

The company said it has helped solopreneurs save an estimated $350 million in taxes to date, with some of its highest-earning customers saving as much as $40,000 annually through its services.

Collective plans to use the new funding to accelerate product development in banking and insurance while expanding customer acquisition efforts. The investment is expected to support the company’s strategy of building a broader financial services ecosystem tailored to the needs of independent professionals and self-employed workers.

The funding follows Collective’s recent acquisition of embedded accounting FinTech Open Ledger for an undisclosed amount. The acquisition is expected to strengthen Collective’s technology capabilities as it expands its product portfolio and enhances financial management tools for customers.