The Israel-based firm announced that the funding round was led by Greenoaks Capital and Coatue, while firms which had invested prior to this time, and new ones such as Tiger Global were also involved. The funding round also allowed employees of StarkWare to sell their shares via a secondary offering.
In the past couple of months, StarkWare had experienced a rise in its valuation despite the Terra blockchain fiasco which led to losses amounting to billions of dollars. As of November 2021, StarkWare was valued at $2 billion after raising $50 million in its Series C funding round.
Uri Kolodny, the Co-founder and CEO of Starkware explained that the reason for the spike in StarkWare’s valuation is due to the realization of the firm’s stellar infrastructure and tech offerings by investors and developers alike.
Kolodny stated that Starkware’s blockchain scaling solution is the most resilient, robust and value-driven, and this has sparked tremendous interest in what the firm is capable of doing.
With a history which dates back to 2017, Starkware is renowned for two of its core products which are StarkEx – a permissioned Ethereum scaling engine, and StarkNet – which is a permissionless decentralized ZK-Rollup protocol that facilitates independent deployment of smart contracts.
Starkware’s solution is designed to scale up transactions carried out on the ETH blockchain network and it is currently being deployed by the likes of dYdX, Sorare, and ImmutableX.
According to Starkware’s CEO, the received funding would help propel development in engineering, business development and also product development.
Crypto Startups Encouraged to do More
In a recent development, Chainflip, an Automated Market Maker disclosed that it had raised $10 million intended for building a Decentralized Exchange (DEX) through venture capital (VC) funding.
Another VC firm, Fasanara capital also recently showed that the Web3.0 ground has treasures locked in it, as it also recently disclosed the availability of a $350 million investment fund meant to support firms in the Fintech and blockchain technology sector that develops new use cases in the Web3 arena.