Ethereum (ETH) layer-2 developer StarkWare has raised an extra $100 million in its newest fundraising spherical regardless of the prevailing downturn in cryptocurrency markets.
StarkWare’s sequence D fundraising spherical sees the agency’s valuation as much as $8 billion, marking a four-fold enhance in worth simply six months after its Sequence C spherical in November 2021. Tech funding agency Greenoaks Capital led the most recent fundraising spherical along with non-public fairness agency Coatue, Tiger International and different buyers.
StarkWare has established itself as a serious participant within the Ethereum layer-2 scaling house, boasting extra transaction throughput than the Bitcoin community and collectively greater than all different layer-2 platforms in 2022.
The agency makes use of rollup know-how for its Ethereum layer-2 scaling platforms. By producing validity proofs, extra generally often known as zero-knowledge proofs, StarWare says it is ready to add large batches of transactions to Ethereum’s mainnet.
Co-founder and president Eli Ben-Sasson, alongside different pc scientists, pioneered ZK-STARK cryptography. Zero-Data Scalable Clear Arguments of Data is a proof system that makes use of new-age cryptography to encrypt and confirm transaction information — guaranteeing safety, scalability and resistance to quantum computing.
The know-how underpinning StarkWare’s two platforms, StarkEx and StarkNet, has been confirmed in style. StarkEx is the scaling engine utilized by in style nonfungible marketplaces Sorare, ImmutableX and dYdX, whereas StarkNet is a decentralized utility improvement community.
Talking to Cointelegraph, Ben-Sasson and StarkWare co-founder and CEO Uri Kolodny unpacked the most recent fundraising spherical, which has been pushed by outsider investor demand in the long run potential of the layer-2 know-how.
“We consider we’re on a protracted, difficult and demanding mission to invent and develop know-how that hasn’t existed beforehand and convey it to market as a software program product providing with an ecosystem round it. All that requires substantial sources to permit us to deal with the long-term,” Kolodyny instructed Cointelegraph.
StarkWare will use its newest $100 million fundraising spherical throughout the board to develop its ecosystem across the software program instruments it’s constructing. Ben-Sasson additionally famous that StarkEx’s capabilities had been a serious drawcard for buyers, which might see the platform proceed to be a focus for the agency:
“Traders analysis needs to be primarily based on confirmed, examined metrics and the present metrics are all coming from StarkEx. We minted extra NFTs than every other platform, we’re settling extra transactions immediately than Bitcoin and there have been weeks the place we’ve settled greater than Ethereum.”
The StarkWare president mentioned these metrics are mirrored within the firm’s $8 billion valuation and its aim could be to construct on the success of StarkEx thus far, whereas hoping that StarkNet continues to draw builders.
Ben-Sasson admitted that the flexibility of the underlying know-how to realize its present scalability and larger was not stunning given the mathematical concept behind it. Nevertheless, credit score was given to the ecosystem that has adopted StarkEx:
“What’s pleasantly stunning, and lots of credit score goes to the ecosystem and our preliminary companions Diversify, dYdX, Sorare and ImmutableX , is the flexibility to take this core know-how that means that you can get integrity of computation at scale and convey it to finish customers in such a profitable and efficient manor.”
The present downturn within the wider cryptocurrency markets has been a trigger for concern, however the StarkWare co-founders consider their fundraising efforts sign to the broader ecosystem that savvy buyers see a silver lining, regardless of a depressing outlook.