Ethereum Layer 2 developer StarkWare eyes triple valuation to $6 billion

Ethereum Layer 2 developer StarkWare eyes triple valuation to $6 billion

Key points to remember

  • StarkWare is reportedly looking to raise $100 million in a Series D funding round.
  • The increase would triple StarkWare’s valuation to $6 billion.
  • Speaking on condition of anonymity, a company insider said the $6 billion valuation may be realistic.

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Ethereum Layer 2 scaling solution provider StarkWare has reportedly raised at least $100 million at a $6 billion valuation.

StarkWare raises $100 million at a $6 billion valuation

Investors are showing great interest in one of Ethereum’s most anticipated layer 2 projects.

According to a Thursday report by an Israeli newspaper CalcalistechZK-Rollup scaling technology developer StarkWare is currently raising at least $100 million at a $6 billion valuation.

The latest funding round, which is still ongoing, comes just three months after StarkWare raised $50 million at a $2 billion valuation. This round ended in November and was led by top venture capital firm Sequoia, with participation from Paradigm, Three Arrows Capital and Alameda Research. Seven months prior, in March, StarkWare raised $75 million in a Series B funding round led by Paradigm. Other shareholders in the startup include Coinbase, Intel and Mobileye, Intel CEO and Senior Vice President Amnon Shashua. Ethereum co-founder Vitalik Buterin also made an early investment in the project.

Despite turning down numerous investment offers before, the Israeli startup is now reportedly looking to raise at least $100 million in fresh capital, which would triple its previous valuation of $2 billion to around $6 billion. Commenting on the supposed increase, a company insider speaking on condition of anonymity said Crypto Briefing:

“From what we hear, there are many approaches from potential investors. Most are not accepted, but we have a feeling that something interesting may be in the works. in early November, just before the $2 billion valuation and StarkNet’s arrival on the mainnet, investor and developer interest skyrocketed, so a valuation that would have been hard to believe a few months ago could now be realistic.”

StarkWare declined to share details on interested investors or how the company would use the new capital, but an unnamed representative said the team is currently focused on its ZK-Rollup-based StarkEx product.

Unlike other Layer 2 scaling solutions, StarkEx leverages ZK-STARKs, also known as scalable and transparent zero-knowledge arguments, to help Ethereum scale and achieve more of 100,000 transitions per second with dramatically reduced transaction costs.

Ethereum has faced well-documented scaling issues over the past year, leading competing layer 1 blockchains like Terra, Solana, Avalanche, NEAR, and Fantom to gain popularity amid rising pricing. gas charges on the first smart contract network. So-called “alternative layer 1” networks have captured a significant share of Ethereum’s market share and user base as retail interest in cryptocurrencies peaked in late 2021. Rather Rather than scaling the base chain, Ethereum is committed to leveraging various sidechains and layer 2 solutions like StarkWare’s StarkEx to stay competitive.

Disclosure: At the time of writing this article, the author of this article owned ETH and several other cryptocurrencies.

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