StarkWare, Ethereum layer-2 developer StarkWare, has raised another $100 million in its most recent fundraising round despite the current downturn in cryptocurrency markets.
StarkWare’s Series D round of fundraising brings the firm’s value up to $8Billion. This is a fourfold increase in value in just six months following its Series C round, November 2021. The latest round of fundraising included tech investment firm Greenoaks Capital, private equity firm Coatue and Tiger Global, as well as other investors.
StarkWare is a prominent player in the Ethereum layer-2 space. StarkWare boasts more transaction throughput that the Bitcoin network, and collectively, more than any other layer-2 platforms in 2022.
Rollup technology is used by the firm to scale its Ethereum layer-2 platforms. StarWare claims it can add large batches of transactions to Ethereum’s mainnet by generating validity proofs (also known as zero-knowledgeproofs).
Along with other computer scientists, Eli Ben-Sasson was co-founder and president of ZK-STARK cryptography. Zero-Knowledge Scalable, Transparent Arguments of Knowledge (ZK-STARK) is a proof system that uses new-age cryptography in order to encrypt or verify transaction data. This ensures security, scalability, and resistance to quantum computing.
StarkEx and StarkNet are the two platforms that StarkWare uses to scale their technology. This technology has proven very popular. StarkEx is the scaling engine used in popular nonfungible markets Sorare, ImmutableX, and dYdX. StarkNet is an application development network.
Cointelegraph spoke with Uri Kolodny, StarkWare CEO and co-founder Uri Kolodny. They discussed the latest fundraising round. It was driven by outside investors who are interested in the long-term potential of layer-2 technology.
“We believe that we are on a long, difficult and challenging mission to invent technology and develop it and bring it to the market as a product and an ecosystem. Kolodyny explained to Cointelegraph that all of this requires significant resources so we can focus on the long term.
StarkWare will use the $100 million raised in its recent fundraising round to expand its software ecosystem. Ben-Sasson noted that StarkEx’s capabilities are a major drawcard to investors and would see the platform remain a central point for the company.
StarkEx has the latest metrics to help investors evaluate their investment. We have minted more NFTs today than any other platform. We settle more transactions than Bitcoin, and we’ve had weeks when we settled more than Ethereum.
StarkWare’s president stated that these metrics are reflected by the company’s $8B valuation. The company would like to build on StarkEx’s success and hope StarkNet will continue to attract developers.
Related: MakerDAO uses layer 2 network StarkNet for DAI stablecoin enhancement
Ben-Sasson acknowledged that the underlying technology’s ability to scale up and achieve greater scalability was not surprising, given its mathematical theory. StarkEx was adopted by the ecosystem.
“What’s pleasant is that it is possible to obtain integrity of computation at large scale. This core technology allows you to bring it to users in such a productive and effective manner.
Although the current market downturn has been worrying, StarkWare cofounders believe that their fundraising efforts have signaled to the wider ecosystem of savvy investors that they see the silver lining, even though the outlook is grim.
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