Overview

Karat provides customized credit solutions for social media influencers, including tailored credit cards and instant credit advances. It evaluates creditworthiness using influencers’ social metrics—such as follower counts, engagement, and sponsorship income—rather than traditional credit scores. The company targets a niche market with team and advisors from platforms like Instagram, Goldman Sachs, Twitch, YouTube, and Patreon to apply industry-specific insights. Its goal is to give influencers reliable liquidity and financial flexibility to grow their businesses and manage cash flow.

Significant Headcount Growth

YC Company

Simplify's Take

What believers are saying

• Raised $70M in 2023 with Visa partnership to launch creator banking products.
• Secured $40M Series B on July 20, 2023, led by SignalFire for platform expansion.
• Launched Creator Studio Discord in 2026 to boost creator monetization and growth.

What critics are saying

• AxiCard steals market with better rewards and TikTok partnerships within 12 months.
• CFPB fines Karat $100M+ for predatory social metric underwriting in 12 months.
• Visa terminates partnership under regulation, collapsing 70% revenue in 18 months.

What makes Karat unique

• Karat offers credit cards to influencers using social media metrics instead of credit scores.
• Co-founders Eric from Instagram and Will from Goldman Sachs tailor fintech for creators.
• Launched Black Card on December 22, 2020, for premium creator financial solutions.

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Funding

Total Funding

$100.7M

Above

Industry Average

Funded Over

4 Rounds

Notable Investors:

Coatue ManagementY Combinator

Notable Investors:

Coatue ManagementY Combinator

$40,000,000

Series B

Jul 2023

Series B funding is typically for startups that have proven their business model and need more funding to expand rapidly—often by entering new markets or adding more products. Investors are usually venture capital firms that specialize in later-stage investments.

Series B Funding Comparison

Above Average

Industry standards

Ind Avg. $35M

$4M

$30M

$40M

$45M

$65M

$100M

View all funding stages