StarkWare, an Israeli blockchain infrastructure firm valued at $8 billion, has introduced a $4 million fund to invest in pre-seed and seed-stage startups across Africa. This initiative aligns with the continent’s growing embrace of blockchain technology, offering a timely boost to innovation in the sector.
About StarkWare
Established in 2018 by Eli Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa, StarkWare focuses on zero-knowledge proof systems to address scalability issues in Ethereum. Their key products include:
- StarkEx: Launched in June 2020, this scaling engine consolidates multiple transactions into a single proof, enhancing cost and energy efficiency.
- StarkNet: Introduced in June 2021, this decentralized Layer 2 network enables the development of scalable decentralized applications (dApps) with lower transaction fees.
The Africa-Focused Fund
The newly established fund offers grants of up to $150,000 for early-stage startups and has the potential for more significant investments in projects built on StarkNet. It targets high-potential startups in West, South, and East Africa, aiming to support teams with strong technical skills and a deep understanding of local business environments. The goal is to develop scalable blockchain solutions tailored to the region’s unique challenges.
Kheireddine Kamal, Head of Africa Ventures at StarkWare, highlighted the fund’s focus on African nations facing economic challenges such as high inflation, unstable exchange rates, and low financial inclusion. He emphasized interest in areas where local populations are eager to engage with blockchain technology.
Beyond Financial Support
Selected startups will receive mentorship and may qualify for further investments from StarkWare, potentially up to $500,000 or more for exceptional projects. By investing in dApps built on StarkNet, StarkWare aims to empower African businesses to bypass traditional financial systems, leveraging blockchain’s scalability and cost-efficiency.
Africa’s Digital Potential
With a youthful population projected to reach 2.5 billion by 2050 and rapid cryptocurrency adoption, Africa is poised to become a global digital leader. Consumer and business spending is expected to hit $6.7 trillion by 2030, accelerating blockchain adoption.
Eli Ben-Sasson, CEO and co-founder of StarkWare, stated, “Blockchain presents a unique opportunity for many parts of Africa to leapfrog outdated infrastructures and democratise access to financial tools with more decentralisation and transparency.”
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