# Karat Financial Technologies, Incorporated

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/karat-financial-technologies

- Industry: Financial Services
- Headquarters: San Francisco, US
- Website: www.trykarat.com
- Total disclosed funding: $56M
- Latest round: Series B (Jul 19, 2023)
- Investors on record: 8

## About

Karat Financial Technologies, based in California, provides specialized financial services for creators, enabling them to effectively manage their finances in a digital landscape. Their offerings emphasize tailored banking solutions and innovative tools for the creator economy.Karat Financial Technologies focuses on providing financial solutions primarily for content creators and entrepreneurs. Founded in 2019 in San Francisco, US, the company secured USD 40.00 mn in Series B funding on July 19, 2023, led by SignalFire with participation from other investors including Union Square Ventures and CRV. The founders, Eric Wei and Will Kim, have a background in innovative financial services, with Will Kim serving as the current CEO.Karat offers a suite of financial products specifically designed for creators, including FDIC-insured business checking and savings accounts, high-yield accounts with up to 2.00% APY on checking balances, and automated tax planning tools. They provide both physical and virtual business Visa® cards, facilitating transactions through ACH, wire transfers, and in-house payment solutions, all tailored to the needs of creators throughout the United States.Karat generates revenue through transactional fees from payments, card usage, and account maintenance. Their direct-to-consumer model caters to creators and small businesses who subscribe to their banking services, including business checking accounts. A premium membership option offers higher APY rates and exclusive benefits, forming a significant part of their revenue structure.In July 2023, Karat Financial Technologies raised USD 40.00 mn in Series B funding, which will be utilized to enhance their product offerings. The company aims to introduce new financial products tailored to creators and to expand into additional geographic regions, although specific markets have not been disclosed. The funding will support these product enhancements and strategic growth initiatives.

## Funding rounds

- Series B, Jul 19, 2023, $40M — CRV, Granite Asia, Union Square Ventures, Commerce Ventures, SignalFire
- Series A, Jul 1, 2021, $11M — Granite Asia, Union Square Ventures, SignalFire, Standard Broadcast
- Seed, Jun 25, 2020, $4.6M — CRV, Coatue Management, Y Combinator, SignalFire

## Investors

- CRV (https://capitalatlas.ai/funds/crv) — Seed, Series B
- Coatue Management (https://capitalatlas.ai/funds/coatue-management) — Seed
- Y Combinator (https://capitalatlas.ai/funds/y-combinator) — Seed
- SignalFire (https://capitalatlas.ai/funds/signalfire) — Seed, Series A, Series B
- Granite Asia (https://capitalatlas.ai/funds/granite-asia) — Series A, Series B
- Union Square Ventures (https://capitalatlas.ai/funds/union-square-ventures) — Series A, Series B
- Standard Broadcast (https://capitalatlas.ai/funds/standard-broadcast) — Series A
- Commerce Ventures (https://capitalatlas.ai/funds/commerce-ventures) — Series B