The startup, which was part of accelerator Y Combinator’s Winter 2020 batch, is also announcing that it has raised USD 4.6 million in seed funding from Twitch co-founder Kevin Lin, SignalFire, YC, CRV and Coatue.
With the Karat Black Card, the startup is giving creators a credit card that they can use for their business-related expenses. When creators are approved, they receive a USD 250 bonus that can be applied to any future purchases of electronics or equipment. The card also comes with custom designs, 2% to 5% cash back on purchases and it also offers advances on sponsorship payments, according to TechCrunch. Instead of looking at credit scores, Karat focuses on the size of a creator’s following, their current revenue and whether they’re ‘business savvy.’
Karat has already provided the card to an initial group of creators. For now, the card is aimed at professional, full-time creators who have at least 100.000 followers.
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