BirdFont is a font editor that lets you create vector graphics and export them to TTF, EOT and SVG fonts. The editor has good support for both monochrome and color font formats.

You can create your own fonts from scratch with a variety of drawing tools that let you design the vectors for each letter, or you can trace letters or import them in SVG format. The program can also open existing font files for editing.

BirdFont is free to use as long as the fonts you create are released under the SIL Open Font License.