Ethereum layer-two developer StarkWare valued at $2B following $50M raise
Israel-based StarkWare reported through Twitter on Tuesday that it has secured $50 million in a Series C fundraising round, bringing the company’s total worth to $2 billion. Sequoia Capital was the main investor, with additional investors joining in. StarkWare raised $75 million in a Series B fundraising round headed by Paradigm seven months ago.
This announcement comes ahead of the release of StarkNet Alpha 2, an update to the company’s Zero-Knowledge Rollup technology, or zk-Rollup, on Ethereum mainnet, which is expected to happen by the end of November. StarkNet Alpha, according to the business, promises to offer permissioned smart contract deployment, making the scaling technology available to anybody who wants to build on it.
StarkWare, located in Israel, said on Twitter on Tuesday that it has raised $50 million in a Series C funding round, increasing its total valuation to $2 billion. The primary investor was Sequoia Capital, with more investors following in afterward. Seven months ago, StarkWare secured $75 million in a Series B funding round led by Paradigm.
Rollup technology is divided into two categories: zk and optimistic rollups. ZK-Rollups construct zero-knowledge proofs for verifying transactions and send those proofs to the Ethereum mainnet continually, whereas Optimistic Rollups assume transactions are legitimate by default and just execute the calculation. Validating a block and transmitting cash is faster and less expensive with a zk-Rollup since less data is provided.
Polygon, Starkware’s L2 rival, debuted its zk-STARK powered Miden Virtual Machine for the development of decentralised apps, or DApps, at the same time.