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Ex-Instagram Product Manager and Former VC Launch Karat, the First Black Card Exclusively for $15B Creator Economy

Investors such as Twitch co-founder, SignalFire, Y Combinator, CRV, and Coatue backing Karat and its Black Card for Creators


San Francisco, CA – WEBWIRE
Karat Black Cards
Karat Black Cards

“Traditional financial institutions don’t understand the creator business model and quite frankly, creators don’t want to work with bankers that don’t respect their business,” says Will Kim, cofounder of Karat. “We created Karat specifically to serve the unmet financial needs of creators and influencers who need capital to grow their business and shouldn’t be denied financing on the basis of legacy requirements that don’t apply to them.”  

Despite powering a $15B industry, successful digital creators and influencers struggle with accessing ordinary financial services and products. That’s why Karat, the company building a better banking experience for creators, today announces the debut of the first-ever card exclusively meant for creators: the Karat Black Card. In addition to access to better limits, Karat offers creators a simple way to manage their finances and save money with customized card rewards and perks. Creators can apply today in minutes at www.trykarat.com with no impact on their credit score.  

Karat also announces $4.6M in seed funding, with backing from Kevin Lin, the co-founder of Twitch, SignalFire, YCombinator, CRV, and Coatue
 
A Creator Economy Grossly Underserved 

According to a Business Insider Intelligence report, the influencer business is set to be worth $15B by 2022, while the ten highest earning gamers earned a combined $121M last year. Historically, however, creators have been denied access to traditional financial services and products because banks don’t understand their business model and rely on an outdated and limited set of metrics. With no predictable monthly income or long history of credit, many high-income creators are misunderstood and turned away, leaving them with no accessible way to get the financing and tools they need to run their businesses.

Enter Karat: The ‘Black Card’ for Creators 

Co-Founded by former Instagram Live Product Manager Eric Wei and former VC Will Kim, Karat is the only financial services provider designing products exclusively to support the unique needs of the new creator economy. Using proprietary underwriting technology, Karat analyzes creators’ cross-platform success and audience engagement, which no other bank is doing, offering the easiest way to access capital without the steep fees associated with traditional financial institutions. 

Karat Black Card membership focuses on creators with a verified following over 100,000 followers and comes with several unique features and benefits including:

  • Sign up bonus: Upon signing, members will receive a one-time $250 sign up bonus toward any future purchases on equipment or electronics
  • Customized benefits: 2-5% cashback on vertical-specific purchases (streaming equipment, electronics, makeup etc) with premium perks such as advances on sponsorship payments at zero cost
  • Easy application: Five-minute application process with no impact on personal credit score
  • Affordability: Waived fees, subject to terms outlined in the cardholder agreement
  • Custom card designs: Creators receive a card with their logo to express their brand


“Traditional financial institutions don’t understand the creator business model and quite frankly, creators don’t want to work with bankers that don’t respect their business,” says Will Kim, cofounder of Karat. “We created Karat specifically to serve the unmet financial needs of creators and influencers who need capital to grow their business and shouldn’t be denied financing on the basis of legacy requirements that don’t apply to them.”  

“The creator economy is massive and doubling every couple years, but even some of the most successful creators are locked out of traditional banking systems,” said Saar Gur, general partner at CRV. “The creator economy needs new models to support it, and Eric and Will have designed a solution that helps a new breed of entrepreneurs get the financing they need along with the benefit of having a long term partner that is committed to their success.”

Karat is already working with top creators including TheRussianBadger (YouTube: 2.7M, Twitch: 380K), Nas Daily (Facebook: 15M, Instagram: 1.8M), and TierZoo (YouTube: 2M).

“Karat is the card I wish I had two years ago. Banks gave me laughably low credit, forced me to fax documents like the Mesozoic era, and treated me like I didn’t matter. Now I have the credit I need, the perks I want, and a fax machine that I can set on fire,” said TheRussianBadger.

To sign up for the Karat Black Card go to: www.trykarat.com 

About Karat
Karat is building a better banking experience for creators. Headquartered in San Francisco, the company is on a mission to build a banking system that understands the creator business model, and provides financial tools that creators need to manage their businesses as they grow. Karat is backed by SignalFire, Y Combinator, Coatue, CRV and strategic investors such as Kevin Lin, co-founder of Twitch. To learn more, visit www.trykarat.com
 


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 Creators
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 Black Card
 Fintech
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