StarkWare, an Israeli-based firm that provides solutions for blockchain technology protocols using Zero-knowledge proof technologies for scaling is reportedly raising funds at a $6 billion valuation.
According to the Israeli daily newspaper Calcalistech, StarkWare will be raising at least $100 million, although the source was neither mentioned nor was there any information as to who will be backing the firm in this financing round.
The new proposed funding is coming after StarkWare raised $50 million in a Series C round at a valuation of $2 billion three months ago. It was also recorded a year ago that the firm raised $75 million in a Series B round valued at hundreds of millions.
The Series C round had participation from Alameda Research, Paradigm, Three Arrows Capital, not excluding Sequoia Capital who led the round, and a host of others. StarkWare founder and CEO Uri Kolodny at the time said the organization would raise more money in the future if it had the chance.
Quoting an insider who pleaded anonymity who said he “believes things move so fast in the firm and wouldn’t be surprised if the valuation is tripled after three or four months”.
The Netanya-based firm is also known to verify large batches of blockchain transactions at a faster rate than traditional methods. The firm’s product enables a secure, and scalable operation for blockchain applications. It is also known for offering cryptographic compression service which allows blockchain to scale by orders of magnitude.
StarkWare boasts of current staff strength of 70 all working together to provide two Ethereum scaling products; StarkEx and StarkNet. The first powered scalability engine uses cryptographic proofs to confirm transactions while the second which doesn’t require permission uses a recently launched decentralized ZK-rollup network.
StarkNet enables any investor to create decentralized applications on the network like Ethereum thereby reducing gas fees.
Israel is looking to serve as the home for the blockchain and crypto industry as it has recorded lots of investment from several corporations in the crypto sphere. FireBlocks was not left out as it raised $550 million at an $8 billion valuation earlier this year.
The crypto space has also recorded several funding recently, one of which is Immutable X which raised $200 million in a Series C funding round as reported by cryptomarketsbeat.