Israeli blockchain start up Starkware is reportedly closing a bumper funding round at a new valuation of $6bn.
While it is still unknown which companies are participating in the round it will likely raise at least $100m the media outlet Calcalist first reported. The new round could see the firm’s valuation triple in a matter of months, with Starkware valued at $2bn following a $50m funding round in November which was led by Sequoia Capital.
“We have not been told of a new round, but know there are offers of investment all the time,” a company insider told City A.M..
“The public is excited about crypto, and venture capital realises that blockchain isn’t ready to meet demand. So when a solution comes along that can scale blockchain for wider use and proves itself with a bespoke product for companies, it’s attractive,” the insider added.
Starkware, which was founded in 2018, aims to solve the scaling issues faced by legacy blockchains in the crypto space by allowing companies to build apps on top of an ultra-fast chain capable of processing a large number of transactions at a low cost.
Last month the firm launched Starknet, a Layer 2 scaling solution for Ethereum, on its mainnet which uses ZK-rollups to facilitate large volumes of transactions simultaneously. The new product has sparked a flurry of investor interest in the firm according to the company insider.
“The fact that any developer can now build viable blockchain apps has caught investors’ imagination. It’s kind of seen as a fast track to Web3. So I wouldn’t be at all surprised if the reports are true,” the source told City A.M..
The company’s blockchain-based computation technology is used by companies including dYdX, Sorare, and Immutable X which in turn delivers technology to TikTok among others.