Karat just raised fresh funding – and launched a partnership with Visa – to build financial tools for content creators.
Fintech Karat Financial just raised $40 million in equity financing and $30 million in debt to increase financial access for content creators, or people who make money on their videos, social feeds, or personal brands.
The startup’s credit cards rely on social stats and financial statements instead of FICO scores to determine customers’ credit card limits, and it offers accounting tools tailored to creators as well. It’s also launching a new partnership with Visa to improve access to capital.
“When it comes to their financial lives, creators are underserved,” according to Visa’s head of fintech, Marie-Elise Droga. “They’re running a business and have the needs of a business, yet, for the most part, they are treated as individual consumers.”