Karat Financial – a leading financial services platform for creators – recently announced the launch of a new business card in partnership with Visa, a world leader in digital payments. And the card is designed specifically with creators in mind and helps them establish personal credit history, improving access to capital when and where they need it.
The company also announced it had raised a combined $70 million in Series B financing, including $30 million in debt financing from TriplePoint Capital and a $40M equity round led by SignalFire, with full pro-rata participation from existing investors, including Union Square Ventures, CRV, & GGV, new investors such as Commerce Ventures, and top celebrities & creators including Will Smith via Dreamers VC, Nick DiGiovanni, MoistCr1TiKaL via MANA Talent Group, Ludwig Ahgren, Wendover Productions, and Pat Flynn – joining existing angels like Biz Stone cofounder of Twitter, Michael Ovitz cofounder of CAA and Steve Chen cofounder of YouTube.
The new funding round brings the total amount the company has raised to more than $100 million to date. And despite the creator economy being estimated at $250 billion globally today, content creators face significant challenges in accessing credit. Conventional banks – which usually require a consistent monthly income and focus on traditional revenue streams – often deny high-earning creators access to the capital and credit needed to expand their businesses.
As an industry leader in banking solutions that meet the needs of the world’s top creators, Karat has grown its creator cardholder base 5x since its Series A raise. By utilizing their history with Karat, creators now have an easier path to capital when applying for mortgages, car loans, and other essential financial products, which improves chances of approval and securing favorable terms for crucial life endeavors.
The new Karat business card provides creators with several benefits:
— Personal credit building – The Karat business credit card helps creators build their personal credit history as they make on-time payments. And creators don’t undergo a hard credit pull when opening the card. Building personal credit history helps the entire financial ecosystem better understand creators and offer them better terms.
— Exclusive events and collaborations – Karat creators receive special access to exclusive events to network and collaborate. And Karat has hosted unique member experiences at VidCon, the Streamys, VidSummit, and more.
— Purchase protection – Karat creators enjoy a security shield for their purchases. And they can receive reimbursement if eligible items are stolen or accidentally damaged within 90 days of purchase, providing peace of mind and safeguarding valuable investments.
— Simplify taxes – Creators are often eligible for thousands of dollars in tax write-offs that they miss. And Karat creators can effortlessly track business write-offs with their cards and upgrade to personalized bookkeeping and tax services, ensuring a hassle-free tax season.
Karat was co-founded by creator and fintech pros Eric Wei and Will Kim. And Wei’s prior experience includes Instagram, Blackstone, and McKinsey, while Kim brings expertise from his time as a VC and at Palantir and Goldman Sachs.
Karat’s success is mainly due to its underwriting model, which measures the unique creditworthiness of creators. Creators have already made millions of dollars in transactions with Karat business cards, benefiting from higher limits and exclusive rewards.
Notable creators such as Graham Stephan, Marina Mogilko, Nas Daily, 3LAU, Alexandra Botez, Sam Kolder, and Toddy Smith trust Karat to optimize their businesses beyond the hype cycle.
KEY QUOTES:
“We understand the challenges creators face in accessing capital and credit, and we’re here to bridge that gap. By helping creators access the capital they require, we are enabling them to bring their creative ideas to fruition.”
— Will Kim
“Our mission is to become a one-stop financial center for creators by providing them with all the tools they need to thrive and scale, so they can focus on what they do best – creating remarkable content that inspires and captivates audiences worldwide.”
— Eric Wei
“Karat’s unwavering dedication to serving the needs of creators resonated deeply with us, and they’ve proven out a new financial model, which no one else is doing. We believe the creator economy is a force to be reckoned with, and Karat’s solutions – without the steep fees or high-interest rates of other cards – positions them at the forefront of this powerful movement.”
— Wayne Hu, Partner at SignalFire
“The Karat card has been a game-changer for both my business and personal finances. It’s not just another credit card; it’s a powerful tool that has transformed the way I manage my finances and access credit. With Karat, I have the financial freedom to invest in my creative projects, while continuing to expand and grow my business.”
— Top chess creator Alexandra Botez
