StarkWare’s Valuation Quadruples To $8 Billion In A New Fundraising Round.
StarkWare, an Ethereum scaling project, has raised $100 million in Series D funding at a $8 billion value. According to CEO Uri Kolodny, the project is trying to grow its ecosystem.
After obtaining $100 million in a Series D fundraising round, StarkWare, an Ethereum scaling company that uses ZK-rollup technology, has quadrupled its valuation to $8 billion.
The financing was headed by Greenoaks Capital and Coatue, the company revealed on Wednesday. Tiger Global was among the other current and new investors who contributed to the round. The funding also included a supplementary component, which allowed StarkWare employees to sell shares.
Despite the recent deterioration in sentiment following the Terra blockchain’s failure, StarkWare’s valuation has risen dramatically in the last six months.
When it raised $50 million in Series C fundraising last November, the company was valued at $2 billion. The Israeli newspaper Calcalist stated in March that StarkWare was looking to raise at least $100 million at a valuation of $6 billion.
When asked what prompted the valuation increase, the company’s co-founder and CEO Uri Kolodny said in an interview that both the developer and investor communities are realizing that the company provides “the most comprehensive, most powerful, most battle-hardened, most future-proof solution to scale blockchain, and that triggers a significant amount of interest in being a part of StarkWare.”
Kolodny said that StarkWare concluded the round last week following Terra’s rapid unraveling.
StarkWare, which was founded in 2017, has two main products: StarkEx and StarkNet. The former is a permissioned custom-made Ethereum scaling engine, while the later is a permissionless decentralized ZK-rollup that allows for independent smart contract deployment. The goal of Ethereum scaling networks is to increase the number of transactions while decreasing gas fees.
dYdX, Sorare, and Immutable are among the crypto projects that employ the company’s technology. Kolodny stated that with additional finance in place, the company intends to further extend its ecosystem.
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