Collective launches to be the ultimate ‘back office’ platform for freelancers

 The U.S. freelance economy is booming, according to a recent Upwork report, with more than a third of the country’s workforce carrying out some form of freelance work in the past 12 months. This reportedly created $1.2 trillion in economic value — up 22% on the previous year.

But the shift has also created a lot of administrative work — from business incorporation to accounts, expenses, and taxes. Today, a startup is launching out of stealth with an impressive roster of investors to serve as an all-in-one back office for “businesses of one.”

Founded in 2018 as Hyke, the San Francisco-based company later changed its name to Collective and brought on Hooman Radfar as cofounder and CEO. Radfar previously launched a website audience tracking platform called AddThis that was acquired by Oracle in 2016 for a reported $175 million, and he subsequently joined startup lab and investment company Expa, which was set up by Uber cofounder Garrett Camp.

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To help fund the platform’s beta and prepare it for a public launch, Collective managed to raise $8.65 million in funding from backers like General Catalyst, QED Investors, Google’s AI-focused fund Gradient Ventures, and Expa. The round also included a host of notable individual investors, including Garrett Camp.

Taxing

Collective offers an array of tools and services through a single online dashboard, covering S Corp formation, business banking, accounting, expense categorization, tax filing guidance, and more. The platform also links directly to third-party financial software, such as Gusto and QuickBooks.

The platform’s greatest asset is arguably its instant access to professional tax and business advisers. Collective offers users a quarterly review of their accounts and books, providing feedback on ways to adjust salaries and “optimize” deductions and expenses. Members can also access real-time messaging to contact their designated bookkeeper or advisor with any specific questions.