The company targets popular bloggers with poor credit ratings.
Fintech-startup Karat introduced its first Karat black card product – a credit card for content creators on YouTube, Twitch and other popular Internet platforms.
It is noted that bloggers and streamers will be able to use the Karat black card for business related expenses. Therefore, after obtaining approval from Karat, the cardholder can rely on a $ 250 loan to purchase electronics and other equipment. The card has cashback on purchases ranging from 2% to 5%, and also offers advances for sponsorship payments.
Karat is a project by former Instagram and Goldman Sachs, aimed at content makers of major Internet platforms, a $ 15 billion rapidly growing industry. Finextra.
Although many popular bloggers make significant amounts of money, they often have problems servicing banks because of a mediocre credit rating.
A YouTuberRRerBadger with 2.7 million subscribers says: “Banks set me a ridiculously low loan limit, forced me to fax documents as if we were still living in the Mesozoic era, and so on with me Behaved as if I am nothing mean. “
According to Eric Wei, one of the creators of Karat, the company has developed an underwriting model for working with influential people. To assess their credibility, a startup does not use a credit rating, but takes into account the number of customers, current income, and “common sense” in business matters.
Wei emphasized that not only the number of subscribers is important, but also the platform with which the author works. “I’d rather TikTok have over 100 million subscribers on YouTube than 1 million, because in TikTok it works on all algorithms.”
In conjunction with the first product presentation, Karat also announced that it received $ 4.6 million in seed funding from Twitch co-founders Kevin Lynn, Signalfire, YC, CRV and Kotyu.
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