Collective, a platform that provides back-office services for solopreneurs, has raised $50 million in a funding round led by Google’s AI fund, Gradient Ventures.
The company plans to use the funds to launch its new AI-driven financial management offering, which aims to help solo business owners with tasks like bookkeeping, payroll and tax filing.
Collective caters to the growing freelance market, which accounts for 39% of the U.S. workforce and is expected to surpass 50% by 2027. The company offers services such as business formation, S-election, tax and bookkeeping solutions, tailored to the needs of “businesses-of-one”.
To scale its operations and serve the nearly 100,000 businesses on its waitlist, Collective has developed AI copilots that work alongside its team of experts. The copilots use large language models (LLMs) to automate and speed up processes like bank reconciliation and expense categorization.
Collective’s co-founder and CEO, Hooman Radfar, said that the company’s mission is to empower solopreneurs with the tools and support they need to succeed. He said that the new funding and the launch of the AI-driven financial management offering will enable Collective to reach more customers and provide them with better service.