StarkWare, an Israeli blockchain infrastructure powerhouse valued at $8 billion, has unveiled a $4 million fund aimed at investing in pre-seed and seed-stage startups across Africa. This initiative comes at a pivotal moment as the continent increasingly embraces blockchain technology, fostering an environment ripe for innovation.
The newly established Africa-focused fund will offer grants of up to $150,000 to early-stage startups, with opportunities for larger investments available for projects built on StarkNet, StarkWare’s proprietary decentralized application platform operating on the Ethereum blockchain. The fund seeks to identify high-potential startups in West, South, and East Africa, emphasizing teams that combine robust technical expertise with local business acumen to develop scalable blockchain solutions.
Kheireddine Kamal, Head of Africa Ventures at StarkWare, articulated the fund’s focus: “We are looking for projects in African countries that have economic conditions such as high inflation, unstable exchange rates, or low financial inclusion, with a local population interested in blockchain.” This targeted approach aims to address the unique challenges faced by these regions while leveraging the transformative potential of blockchain technology.
Besides financial support, selected startups will receive mentorship and the chance to secure further investments from StarkWare, potentially reaching up to $500,000. Exceptional projects may qualify for even larger funding. By investing in decentralized applications (dApps) on StarkNet, StarkWare aims to empower African businesses to bypass traditional financial systems, benefiting from the scalability and cost-efficiency that blockchain offers.
With a youthful population projected to reach 2.5 billion by 2050 and rapidly increasing cryptocurrency adoption, Africa is poised to become a global digital powerhouse. According to forecasts, the continent will experience $6.7 trillion in consumer and business spending by 2030, accelerating the pace of blockchain adoption.
“Blockchain presents a unique opportunity for many parts of Africa to leapfrog outdated infrastructures and democratize access to financial tools with more decentralization and transparency,” stated Eli Ben-Sasson, StarkWare CEO and co-founder.
Founded in 2018 by Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa, StarkWare specializes in developing zero-knowledge-proof systems to tackle scalability challenges in blockchain networks like Ethereum. Its flagship products include StarkEx, a scaling engine launched in June 2020 that aggregates transactions for enhanced cost and energy efficiency, and StarkNet, a decentralized Layer 2 network introduced in June 2021 that enables scalable dApps with lower fees.
Kamal further elaborated on StarkNet’s potential, saying, “StarkNet is a particularly interesting path to blockchain, as it is currently a Layer 2 over Ethereum and plans to also operate over Bitcoin. This can be great for Africa, as it can mean that the ‘scaling squared’ approach also translates to a ‘liquidity squared’ approach.”
As StarkWare embarks on this exciting venture, the fund represents a significant commitment to fostering blockchain innovation in Africa, empowering startups to harness the transformative capabilities of decentralized technology and drive sustainable economic growth across the continent.
