StarkWare, an $8 billion Israeli blockchain infrastructure company, has launched a $4 million fund to invest in early-stage blockchain startups across Africa.
This initiative capitalizes on the continent’s growing blockchain adoption and aims to foster innovation in the sector.
Founded in 2018 by Eli Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa, StarkWare specializes in zero-knowledge proof systems that improve blockchain scalability.
Their products include StarkEx, a transaction aggregation engine, and StarkNet, a Layer 2 network for scalable dApps.
The fund will provide grants of up to $150,000 to pre-seed and seed-stage startups in West, South, and East Africa, with potential for larger investments, especially for projects built on StarkNet.
StarkWare is targeting teams with strong technical skills and a deep understanding of local business needs, enabling them to develop tailored blockchain solutions.
StarkWare’s Head of Africa Ventures, Kheireddine Kamal highlighted the fund’s focus on countries facing economic challenges like high inflation and low financial inclusion, particularly where there’s a strong local interest in blockchain.
Beyond funding, selected startups will receive mentorship and access to further investment from StarkWare, potentially reaching $500,000 or more for exceptional projects.
By supporting dApps on StarkNet, StarkWare aims to empower African businesses to bypass traditional financial systems.
Africa’s young and growing population, projected to reach 2.5 billion by 2050, coupled with rapid cryptocurrency adoption and an estimated $6.7 trillion in consumer and business spending by 2030, positions the continent as a future digital powerhouse.
StarkWare Chief Executive Officer (CEO) and co-founder, Eli Ben-Sasson, believes blockchain can help Africa “leapfrog outdated infrastructures and democratize access to financial tools.”
Mr Kamal emphasized the potential of StarkNet, a Layer 2 solution for Ethereum (with plans to extend to Bitcoin), stating that its dual approach translates to a “liquidity squared” strategy, further benefiting the African market.
This investment underscores StarkWare’s commitment to the African blockchain ecosystem’s growth.
