Ethereum Scaling Startup Reportedly Triples Valuation in 4 Months

The Ethereum layer-2 developer is raising at least $100 million, Israeli newspaper Calcalist reported

article-image

StarkWare co-founders Uri Kolodny (left) and Eli Ben-Sasson (right)

share

key takeaways

  • “Since StarkNet was launched, interest from devs and investors has gone through the roof,” an anonymous company source told Blockworks
  • In an interview with Blockworks in November 2021, one of the four co-founders said that they “didn’t need the money” from its Series C, but the funds helped them grow their operations even faster

Ethereum layer-2 developer StarkWare is raising at least $100 million, for a valuation of $6 billion, Israeli newspaper Calacalist reported.

StarkWare declined to comment Thursday. However, a company source, who spoke under anonymity to Blockworks, said they couldn’t confirm it, “but it sounds entirely plausible.”

“Since StarkNet was launched, interest from devs and investors has gone through the roof,” the source said.

The new valuation is triple its previous $2 billion valuation from just four months ago, when the company raised $50 million in a Series C round led by Sequoia Capital.

“It seems to be the idea of letting anyone build Web3 that’s caught the imagination of venture capital,” the source said. “So, while the numbers cited are high, if I arrive at work and hear it’s accurate, I won’t be surprised.”

StarkWare is a four-year-old startup — created by four co-founders Eli Ben-Sasson, Alessandro Chiesa, Uri Kolodny and Michael Riabzev — that offers blockchain scaling services through “STARK” proofs, which are Ethereum-based products using rollups technology invented by Ben-Sasson and Riabzev.

The StarkWare-based solutions include its two products — StarkEx, a permissioned validity rollup, and StarkNet, a permissionless decentralized zero-knowledge rollup  — which aim to increase speed and reduce the cost of Ethereum gas fees.

The largest dApp on StarkEx, by total-value-locked (TVL), is decentralized derivatives exchange dydx, with roughly $1 billion in TVL, according to DeFi Llama.

Two weeks ago, StarkNet began deploying decentralized apps, or dApps, with zero-knowledge rollup technology to help alleviate the blockchain’s scaling problem. 

In an interview with Blockworks in November 2021, Kolodny said StarkNet “didn’t need the money” from the Series C, but the funds helped them grow their operations faster.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

Scientific reputation should be determined by a decentralized community of scientists, not the validation of higher institutions

article-image

Paxos is getting off scot-free after the SEC said it wouldn’t pursue legal action against the company

article-image

The Srcful partnership is part of a broader plan to onboard Helium “subnetworks”

article-image

Plus, a look into US spot BTC funds six months into trading

article-image

A Swedish energy-focused project named Srcful proposed to become a Helium subnetwork with its own ENERGY token

article-image

Securitize CEO Carlos Domingo thinks BUIDL will potentially hit its next $500 million milestone in just a few months