- StarkWare’s rating quadruples in six months
- Investors rely heavily on Layer 2 solutions
StarkWare Industries, developer of Layer 2 scaling solutions for Ethereum (ETH), announced that it raised $100 million, taking its valuation from $2 billion to $8 billion. Six months ago, StarkWare raised $50 million in a Series C funding round led by Sequoia Capital.
Series D was led by venture capital firm Greenoaks Capital and investment management firm Coatue. Tiger Global and other unnamed investors also attended. According to the company, there is also a secondary transaction to the round in which employees are selling their shares.
StarWare’s recent funding comes in the midst of a bear market and follows the crash of cryptocurrencies LUNA and TerraUSD (UST). Still, Uri Kolodny, StarkWare’s co-founder and CEO, said the raise was “a vote of confidence” in StarkWare’s tech stack.
Established as a prominent Ethereum Layer 2 scaling protocol, StarkWare relies on its STARKs technology to reduce the amount of information sent to the Ethereum blockchain and reduce blockchain congestion.
It recently launched its StarkNet Alpha 2 scaling solution. As a permissionless validity rollup or zero-knowledge rollup, StarkNet uses foundational compression technology to increase the production and security benefits of Ethereum Layer-1 (L1).
According to Kolodny’s partner Eli Ben-Sasson, co-founder and president of StarkWare, the goal is to make blockchain apps as widespread as smartphone apps. “Anyone who has ever built a website can use StarkNet to build a blockchain app that will be part of the Web3 revolution and will pioneer new and exciting uses for blockchain,” said Ben-Sasson.
StarkWare’s scaling engine, StarkEx, compresses transactions through STARKs before adding them to the Ethereum blockchain network. About half a trillion dollars were reportedly traded on StarkEx.
For example, gaming company Immutable X has been using StarkEx to mint its NFTs on Ethereum for the past two years. The StarkEx engine increased throughput and reduced gas costs associated with NFT minting for their Gods Unchained blockchain game.
Immutable X announced on Wednesday that it will be integrated on top of the StarkNet protocol to become a cross-rollup liquidity platform for NFTs. This will allow players to directly trade any asset reconciled across multiple Ethereum layer 2 and layer 3 rollups, facilitating projects moving instantly from L1 smart contract based games to Immutable migrate.
$8B Post-Ethereum Layer 2 Developer StarkWare After $100M Raise Is Not Financial Advice
Source: Crypto News Austria