The first all-in-one, subscription based, back-office platform designed for self-employed people receives additional funding in order to continue to empower businesses-of-one to succeed
Collective, the first all-in-one back office platform, designed to give self-employed people the technology, team and community they need to focus on their passion, not their paperwork, announced their $20 million in Series A funding. General Catalyst led the round, joined by Sound Ventures. This round brings Collective’s total funding to $28.65 million. Other notable investors: Steve Chen (Founder YouTube), Hamish McKenzie (Founder Substack), Aaron Levie (founder Box), Kevin Lin (founder Twitch), Sam Yam (founder Patreon), Shadiah Sigala (founder HoneyBook), Adrian Aoun (founder Forward), Holly Liu (founder Kabam), Andrew Dudum (founder Hims) and Edward Hartman (founder LegalZoom).
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Sound Ventures, the venture capital fund founded by Ashton Kutcher and Guy Oseary, will be joining to support Collective’s mission to build the de facto platform for businesses-of-one and accelerate Collective’s growth among the creator and builder community. With this community leading the passion economy revolution, it is Collective’s vision to become the preferred back office partner for these individuals.
"We're proud to be supporting a company that's making it easier for creators to focus on what they do best by taking care of the back office work that creates so much friction for so many early entrepreneurs," said Ashton Kutcher, co-founder of Sound Ventures. "I would have loved something like this when I was getting started, so our team is excited to back this vision for all the future creators out there."
Collective was launched September 2020 by CEO Hooman Radfar, CPO Ugur Kaner and CTO Bugra Akcay, serial entrepreneurs who have experienced first-hand the challenges of being a business-of-one. Collective’s platform provides the underserved business-of-one community with tailored financial services to meet their specific needs and access to trusted advisors that oversee accounting, tax, bookkeeping and business formation needs. For the 59 million (36% of US workforce) self-employed workers in the U.S., administrative tasks are a burden and take up 30 days each year across project/client management, bookkeeping and finding work. Collective is committed to changing this, by building the first online back office platform that continues to empower, support and connect the self-employed community.
"Collective is serving the $1.2 trillion business-of-one industry by building the first back office platform that saves individuals significant time and money, while providing them with the appropriate tools and resources they need to help them succeed," said Niko Bonatsos, Managing Director of General Catalyst. "We’re excited to support Collective as they expand their team and build an exceptional service for the business-of-one community."
The current pandemic has accelerated an already rapidly growing shift in how the workforce operates, as employers and employees alike realize the benefits of more flexible, remote work. As a result, The Passion Economy has exploded and the number of businesses-of-one in the US is projected to make up 86.5 million, 50% of the US workforce by 2027. The self-employed space is growing 3x faster than the traditional workforce. Recognizing this workforce is the most underserved community of entrepreneurs in the U.S., the new funding will enable Collective to continue to meet the increasing demand for bespoke financial services for businesses-of-one, scale the business and build out the team to support the brand’s important and timely mission. Collective has seen 8x growth since seed funding, has seen its revenue grow by more than 250% and has a waitlist of over 20,000 people.
"We’re excited to have Sound, headed up by Guy and Ashton, along with some of the best and brightest founders join General Catalyst and our existing investors to make Collective the standard back-office for solopreneurs ," said Hooman Radfar, co-founder and CEO of Collective. "Being a business owner is the American dream. Building a business is hard. It's even harder when you're alone. We want to be the partner that empowers creators and builders to focus on their craft and enjoy the same benefits and tax savings as big businesses."
Collective is the first online back office platform designed for businesses-of-one. Collective’s technology and team of trusted advisors gives their members the freedom to focus on what matters by taking care of everything from business incorporation to accounting, bookkeeping, tax services and access to a thriving community - all-in-one platform. Collective wants running your own business to be as seamless as taking a full-time job. The company is run by a group of serial entrepreneurs and businesses-of-one who believe in empowering self-employed people to enjoy the same tax savings that big companies get. They’re a San Francisco-based startup backed by General Catalyst, QED, Google’s Gradient Ventures, Expa and prominent investors who have financed and built iconic companies like YouTube, Substack, Twitch, Box, Hims, Instacart, Lyft, and more.
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