StarkWare, the development firm behind leading Ethereum scaling solution Starknet, is launching a US$4 million venture fund to back innovative blockchain solutions in Africa.
StarkWare is a blockchain technology company that puts zero-knowledge proof technology to work. The company is valued at US$8 billion, having most recently raised US$100 million in a Series D round, and is backed by investors such as Sequoia and Coatue Management.
The firm’s US$4 million Africa-focused venture fund, which is led by Moroccan entrepreneur and investor Kheireddine Kamal, will focus on backing small teams, which are in the pre-seed or seed stages, and are looking to deploy their projects on Starknet.
Early-stage startups can apply for grants of up to US$150,000, and more advanced teams can apply for several hundred thousand dollars. All grantees will ultimately be considered for investment by StarkWare, generally up to US$500,000, but also for larger amounts in some cases.
Kamal said that the fund is looking for projects focused on African countries that have local populations that are interested in blockchain and economic conditions – such as high inflation, unstable exchange rates or low financial inclusion – that might encourage adoption.
“For much of the blockchain industry, talk of financial inclusion for the unbanked and benefits for Africa has never got beyond virtue signaling. We’ve decided it’s time for the next phase, and we’re putting our money where our mouths are,” he said.
“For Africa, Web3 is not just another technology; it’s the continent’s gateway to self-sovereignty. We’ll see use cases that don’t occur to someone in London or New York, for whom blockchain is a nice-to-have. They’ll arise from the need-to-have.”
He added that Starknet is a particularly interesting path to blockchain, as it is currently an L2 over Ethereum, and plans to also operate over Bitcoin.
“This can be great for Africa as it can mean that the “scaling squared” approach also means a “liquidity squared” approach,” said Kamal.
Targeted areas include various countries in West Africa as well as East Africa and South Africa. Kamal said that by combining funding, mentorship, and deep technical expertise, this initiative ensures that African builders have both the capital to execute their vision and the support needed to scale globally.
