The fintech company behind a creator-friendly credit card is extending its own financial resources. Karat Financial has announced a $70 million Series B, which includes $30 million in debt financing from TriplePoint Capital and a $40 million equity round led by SignalFire.
This latest burst of funding is about three times as large as the $26 million Series A Karat announced in 2021. Contributors to the $40 million equity round included a mix of new and returning investors. Union Square Ventures, CRV, and GGV doubled down on their support of Karat, while Commerce Ventures and Will Smith‘s Dreamers VC backed the firm for the first time.
Karat has cultivated a strong customer base among professional creators by simplifying transactions that once proved complex. Alongside its Series B, the L.A.-based company has announced a new business card in partnership with Visa. Among other perks, business card holders will receive personal credit building and purchase protection. Karat is also joining other fintech firms in the creator economy by providing tax season assistance for its business card customers.
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The financial services Karat offers are only part of its strategy. The three-year-old company has positioned itself as an influencer-friendly option by embedding itself within creator communities. It has put cardholders on billboards, given them their own version of Shark Tank, and supported them at events like VidCon and Vidsummit. Business card holders will receive access to exclusive events as part of their memberships.
Karat Co-Founders Eric Wei and Will Kim have collaborated with creators themselves through projects like The Karat Podcast. “We understand the challenges creators face in accessing capital and credit, and we’re here to bridge that gap,” Kim said in a statement. “By helping creators access the capital they require, we are enabling them to bring their creative ideas to fruition.”
As with its Series A, Karat’s Series B includes participation from some of its well-known cardholders. Investors in the company include Nick DiGiovanni, MoistCr1TiKaL (via MANA Talent Group), Ludwig Ahgren, Wendover Productions, and Pat Flynn. Karat is already providing valuable tools for those creators and others. More information about the services it offers is available on its website.