Collective has successfully raised $28.6 million over 2 funding rounds, attracting notable investors such as General Catalyst and Sound Ventures. The platform offers an all-in-one financial solution tailored for self-employed entrepreneurs, aiming to help its members save significantly on business taxes.
Keep reading to explore the intricacies of Collective's fundraising journey and the investors backing this innovative platform.
What Is Collective?
Collective, founded by Morgan McKendry, Bugra Akcay, Ugur Kaner, and Hooman Radfar, is headquartered in San Francisco. The company offers an online back-office platform tailored for self-employed individuals, providing services like business incorporation, accounting, and tax assistance.
With a team of 11-50 employees, Collective aims to empower self-employed entrepreneurs to achieve financial independence. Their platform integrates various financial services to help members save on business taxes and streamline their operations.
Collective's mission is to redefine how businesses-of-one operate by combining technology with expert advisory services. This approach ensures that self-employed individuals can enjoy the same financial benefits as larger companies.
How Much Funding Has Collective Raised?
- Seed Round
- Amount Raised: $8,650,000
- Date: September 2020
- Lead Investors: General Catalyst, QED Investors
- Motivation Behind the Round: To launch and grow the platform, providing financial services to self-employed individuals.
- Series A Round
- Amount Raised: $20,000,000
- Date: May 2021
- Lead Investors: General Catalyst
- Motivation Behind the Round: To scale the business, invest in automation, and expand the team to handle increased demand.
Total Amount Raised: $28,650,000. Current Valuation: Not provided.
Key Investors
- General Catalyst
- Details: General Catalyst is a venture capital firm that invests in early-stage and growth-stage companies. They have a strong track record of supporting innovative startups.
- Investment Focus Areas: Technology, healthcare, consumer, enterprise sectors.
- Notable Investments: Airbnb, Stripe, Snap Inc.
- Sound Ventures (Ashton Kutcher and Guy Oseary)
- Details: Co-founded by actor Ashton Kutcher and talent manager Guy Oseary, Sound Ventures focuses on technology startups. They aim to support companies with disruptive potential.
- Investment Focus Areas: Technology startups, consumer internet, media.
- Notable Investments: Airbnb, Uber, Spotify.
- QED Investors
- Details: QED Investors is a leading venture capital firm focused on early-stage, disruptive financial services companies. They have a strong emphasis on fintech.
- Investment Focus Areas: Financial services, fintech, related technology sectors.
- Notable Investments: Credit Karma, SoFi, Avant.
- Google’s Gradient Ventures
- Details: Gradient Ventures is Google's AI-focused venture fund. They invest in early-stage startups leveraging artificial intelligence.
- Investment Focus Areas: Artificial intelligence, machine learning startups.
- Notable Investments: Algorithmia, Aurora, LendUp.
- Expa
- Details: Expa is a startup studio and venture fund founded by Garrett Camp. They partner with founders to build and grow new companies.
- Investment Focus Areas: Early-stage technology companies across various sectors.
- Notable Investments: Uber, Foursquare, Reserve.
What's Next for Collective?
Collective stands at the cusp of a significant opportunity, with the self-employed market in the U.S. projected to grow from 59 million to 86.5 million by 2027. This expansion offers a vast landscape for Collective to enhance its service offerings, potentially including benefits and insurance, leveraging the trust it has built with its users.
As the company scales, future fundraising opportunities seem promising. The rapid growth and substantial market size make Collective an attractive candidate for further investment. However, challenges such as managing rapid growth, ensuring service quality, and facing competition from similar service providers could pose hurdles along the way.
Use Clay to Get Funding Data
Sales professionals, take advantage of Clay's platform to access comprehensive fundraising data on companies like Collective and gather other critical business insights. Sign up for free today and elevate your sales strategy with the power of detailed, actionable information.
