Kheireddine Kamal and Eli Ben-Sasson. Image Credits: StarkWare
Israel-based unicorn specializing in blockchain scaling technology, StarkWare, has announced that it is launching a $4 million venture fund dedicated to supporting African blockchain startups. This initiative follows a $100 million funding round in 2022, which pushed the company’s valuation to $8 billion. This investment reflects investor confidence in StarkWare’s technology and its potential for driving Blockchain adoption in emerging markets like Africa.
Kheireddine Kamal, an experienced African entrepreneur and investor with a solid background in business development, blockchain, and seed investments, will preside over the fund. Mr. Kamal will manage an Africa-focused investment team to cater to early-stage companies, primarily at the pre-seed and seed levels. Projects building on Starknet, StarkWare’s zero-knowledge (ZK) rollup scaling solution for the Ethereum blockchain will be the priority for the team.
Starknet’s technology has been positioned as a key enabler for African blockchain adoption. As a Layer 2 network scaling Ethereum, Starknet offers faster transaction speeds, lower fees, and greater network capacity, potentially addressing the needs of Africa’s rapidly expanding digital economy.
Mr. Kamal’s strategy will focus on regions demonstrating a strong adoption of blockchain technology, including West, East, and Southern Africa. He aims to support entrepreneurs facing challenges such as high transaction fees, underdeveloped financial systems, and limited access to the global digital economy. The fund will provide not only financial backing but also include mentorship and technical guidance.
“For much of the blockchain industry, talk of financial inclusion for the unbanked and benefits for Africa has never gone beyond virtue signaling. We’ve decided it’s time for the next phase, and we’re putting our money where our mouths are.” Mr. Kamal stated.
“Blockchain presents a unique opportunity for many parts of Africa to leapfrog outdated infrastructures and democratize access to financial tools with more decentralization and transparency. And Africa is an exciting mass market that will drive innovation, and showcase what can be achieved with mass scale.” Eli Ben-Sasson, CEO and co-founder of StarkWare said.
Startups can apply for grants ranging from $150,000 for early-stage projects to larger investments, generally up to $500,000, for more established teams. StarkWare is particularly interested in ventures that combine technical expertise with strong business acumen and plan to deploy their solutions on Starknet.
Africa’s potential for blockchain adoption is significant. The continent is projected to house a third of the world’s youth by 2025 and boasts a promising economic outlook. This comes as consumer and business spending are predicted to reach $6.7 trillion by 2030. Combined with a reported 2,500% surge in cryptocurrency adoption since 2021, the environment seems to be ripe for innovation.
