A Platform and Advisory Team for Freelancers, Collective Aims to Revolutionize Financial Management
In a significant development, Collective, a platform and advisory team that provides bookkeeping, payroll, and tax advice to freelancers, has announced the closure of a $50 million funding round. The investment was led by Gradient Ventures, Innovius Capital, The General Partnership, General Catalyst, QED, Expa, and Better Tomorrow Ventures.
Funding to Fuel Product Development and Scaling Operations
The latest tranche brings Collective’s total raised to $82 million. According to Hooman Radfar, co-founder and CEO of Collective, the investment will be used to fuel product development and scaling operations. The company plans to grow its 200-employee headcount by approximately 30% by next June.
A Growing Market for Freelancer Financial Services
Radfar highlighted the significant growth of the self-employed market during economic downturns like the 2008 recession, the COVID-19 pandemic, and the current tech sector slowdown. He stated that this investment round showcases Collective’s strong positioning and growth trajectory in a vast and steadily growing market.
Founding Story and Mission
Ugur Kaner, Bugra Akcay, and Radfar co-founded Collective several years ago. Radfar met Ugur while working as a founding partner at Expa Ventures, and recruited Akcay, their mutual friend, to kickstart the business. Collective is an all-in-one online back office for "businesses-of-one," providing services typically seen in enterprise-level finance departments.
Radfar’s Personal Experience and Inspiration
Radfar was inspired to found Collective by his experiences as the child of immigrants. His parents chose self-employment when they immigrated to the United States, but Radfar’s father made a simple choice that saved hundreds of thousands of dollars: forming an S corporation instead of a sole proprietorship. This difference in tax treatment had a significant impact on Radfar’s life and led him to create Collective.
Harnessing AI for Disruption
Collective is harnessing the power of artificial intelligence (AI) to disrupt the tax and accounting market. According to Gradient Ventures’ Shirazi, language models will enable operationally-intensive processes to scale more quickly and with lower cost. Collective is applying AI to bookkeeping, accounting, and reconciliation, making complex workflows and proprietary data uniquely positioned to leverage AI.
A Market in Need of Innovation
The gig economy has grown exponentially over the past decade, with millions of freelancers working independently. However, managing finances, taxes, and payroll can be a daunting task for these individuals. Collective aims to revolutionize financial management by providing an all-in-one platform that simplifies complex tasks.
Conclusion
Collective’s $50 million funding round is a significant milestone in the company’s journey to disrupt the tax and accounting market. With a strong team, innovative product, and growing market, Collective is poised for success. As the gig economy continues to grow, Collective is well-positioned to meet the needs of freelancers and independent workers.
Topics
- Collective
- Fintech
- Freelancers
- Gig workers
- Gradient Ventures
- Startups
