Content Creator Financial Platfrom Karat Raises $70 Million Content Creator Financial Platfrom Karat Raises $70 Million
Karat charge card

Content Creator Financial Platfrom Karat Raises $70 Million

A charge card and financial platform aimed at content creators has closed a new round of venture funding.

About the round:

This week, Karat announced that it has raised a new $70 million round. As Crunchbase notes, this includes $30 million in equity and a $40 million debt facility. The equity portion of the Series B round was led SignalFire with participation from returning investors, such as Union Square Ventures, CRV, and GGV, as well as newcomers including Commerce Ventures and Will Smith’s Dreamers VC. Meanwhile, the debt financing portion came from TriplePoint Capital. According to Karat, more than 80 creators have also invested in the company. To date, the FinTech has now raised a total of $115.6 million, including a $26 million Series A in 2021.

About Karat:

Karat is FinTech focused on serving the growing creator market. The company’s first product was a rewards charge card that not only allowed cardholders to earn cashback on common expense categories but also offered credit limits that took creators’ followings into account. Using this model, the company stated that it was able to provide many influencers with limits higher than they might be able to obtain under more traditional models.

More recently, Karat has expanded its platform to offer bookkeeping and tax prep services. Additionally, the startup recently updated its business charge cards to enable cardholders to build personal credit history with the product.

What they’re saying:

In an email interview with TechCrunch, Karat Financial co-founder and co-CEO Will Kim explained what made the company unique, stating, “The bottom line is that Karat sees creators as the brands and businesses of tomorrow, but high-end creators, just like any other business, need access to capital to grow. Karat is here to fuel that growth, democratizing access to capital that remains outside the focus of large banks.” Kim continued “Creators are eating the world, and Karat is in a great position to be the financial system that powers them.”

My thoughts:

As an observer of Karat and a cardholder, I’m not surprised to see that the company continues to gain investment. In particular, it makes sense that the company would be able to attract creator investors given the startup’s presence at major creator-centric events in recent years. Personally, I’ve seen several YouTubers I’m familiar with mentioning the service or otherwise appearing on their platforms.

Admittedly, Karat’s pursuit of these influencers can feel a bit cringe (as the kids say) to me at times — but the truth is that they do seem to be providing a helpful service. For one, with their core product being a charge card, they’re aiding creators’ cash flow without putting them into debt long term. Plus, thanks to their more recent tax service additions, they’re also highlighting an oft-forgotten aspect of self-employment that can end up biting creators in the behind. For those reasons alone, I’m excited about Karat’s latest funding round and look forward to seeing what the company does next.


Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Money@30's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

2023 Small Business Credit Card Satisfaction Tops 2019 Highs

The latest small business credit card study from J.D. Power shows satisfaction continuing to rise. About the study and results: This week, J.D Power released its 2023 U.S. Small Business Credit Card Satisfaction Study, which includes responses from more than 3,400 small business credit card customers. In this case, the study looked at businesses with annual revenues between $10,000 and $10 million. First, it was discovered that overall satisfaction among...

Discover Announces 5% Bonus Categories for First Quarter of 2024

With 2024 sneaking up on us, Discover has announced its rotating 5% bonus categories for the first quarter of next year. About the Q1 2024 bonus categories: From January through March 2024, Discover It customers will be able to earn up to 5% back in two categories: restaurants and drugstores. According to the company, the Restaurants category includes full-service establishments, cafes, cafeterias, fast-food locations, and dining delivery services. For the...

Public App Adds Corporate and Treasury Bonds Feature

The FinTech trading app Public has announced new investment options for its members. About the features: Public is now rolling out the ability for customers to invest fractionally in corporate and Treasury bonds. This capability will be introduced on both the mobile and desktop interfaces for the service. According to Public, the addition comes as demand for fixed-income products increases. In addition to these bond types, the app will also...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....