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Karat Financial 26M Union VenturessilberlingTechCrunch Announces 26M Venture Capital Round

Karat Financial 26M Union VenturessilberlingTechCrunch is a 26m dollar venture capital firm that focuses on technology startups. Its CEO, Jeremy Silverstein, is a former employee of Twitter and has extensive knowledge in the world of tech startups. He is also the founder of the tech blog TechCrunch. The company’s model involves launching a technology startup, selling a piece of its patents to a bigger company, and then reinvesting in the company in order to get it to a bigger stage.

Two Former Instagram Product Managers

Founded by two former Instagram product managers, Karat Financial 26M Union VenturessilberlingTechCrunch is a new company that seeks to create a banking system tailored to the needs of digital creators. By analyzing their cross-platform success and audience engagement, the company provides a credit card that offers customized rewards and easy access to capital.

One Credit Card

As of now, Karat Financial 26M Union VenturessilberlingTechCrunch is offering one credit card that’s specifically designed for creators. It’s called the Karat Black Card. The card’s eligibility is determined by the number of followers the content creator has on social media platforms, as well as current revenue. In its earliest stages, the card has been used by influencers such as Alexandra Botez, who has 800,000 Twitch followers. Ultimately, Karat hopes to help its creators launch merchandise lines and incorporate.

Financial Services

In addition to its credit card, Karat offers a variety of other financial services for its creators. One such service is the ability to offer tax preparation. This is in part thanks to a partnership with a bank that offers bank accounts and other financial tools for creators.

Ultimate Goal of Karat

The ultimate goal of Karat Financial 26M Union VenturessilberlingTechCrunch is to give its creators the tools they need to incorporate, take out loans, and file taxes. To achieve this, the company plans to use its Series A funding to expand its staff and develop new products.

Business Model

Karat Financial is a Silicon Valley company founded by Eric Wei and Will Kim. They’re looking to help digital creators get access to finance. The company uses proprietary underwriting, analyzing creators’ cross-platform success and audience engagement to determine credit and loan eligibility.

Twitch Streamers

It’s a model that has worked for Twitch streamers and festival headlining musicians. But, many influencers are locked out of traditional banking services. Often, creators need banks to pay video editors and hire staff. Aside from that, banks don’t have a holistic understanding of their business. In addition to offering a credit card, Karat plans to offer bank accounts and also tax preparation services.

Carter Sharer

Some creators are already using their cards, including Graham Stephan, Alexandra Botez and Carter Sharer. Others have signed up based on a referral or by DMing the company.

Infrastructure for Creators

Currently, Karat Financial 26M Union VenturessilberlingTechCrunch is only a credit card, but the company’s ultimate ambition is to create a financial infrastructure for creators. This includes helping them incorporate and launch merchandise lines. Additionally, they plan to use the funds to expand their team and develop new products.

As a result of its funding round, Karat has raised $26 million. This includes $11 million in venture financing and $15 million in debt financing.

Final Thoughts:

One of the more notable announcements to hit Silicon Valley’s tech scene this year was the $26 million Series A round for Karat Financial. The company, co-founded by Will Kim and also Eric Wei, is a new breed of financial services company, focused on the self-employed creator economy. The company’s initial product will be a credit card for content creators and also it will be launched in 2020. In addition to the credit card, the company is also working on a bank account solution, along with a suite of financial tools. Among the notable participants in this round are SignalFire, GGV Capital, and also the Union Square Ventures. While the company is still in the early stages of development, it appears to be a shoo in for the coveted title of Silicon Valley’s next big thing.

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