Labs backed by Andreessen Horowitz. In August, Lightspeed backed startup Offchain Labs in a raise that valued the blockchain scaling company at $1.2 billion.

Despite being one of the more renowned investment firms in the tech sector, Sequoia has been slower to fully embrace crypto startups, leaving competitors like Andreessen Horowitz space to back more early players through dedicated funds. Sequoia first backed StarkWare back in 2018, though this is the first time leading a round for the startup. A recent report from The Information detailed that a quarter of Sequoia’s new investments this year were made in blockchain startups.

“The main thing that distinguishes us in the L2 ecosystem… is that we are basically servicing the largest throughput today in terms of both transactions and volume across all the [L2] solutions out there,” co-founder Eli Ben-Sasson tells TechCrunch.


As more efficient use of blockchain drives down transaction fees and carbon footprint, they save millions of dollars weekly and prevent harm to the planet.

“StarkWare is attacking one of the most important problems in crypto – the computational scalability of the blockchain,” said Mike Vernal, partner at Sequoia. “StarkWare is the clear market leader in terms of zero-knowledge roll-ups, powering over $100 billion in transaction volume just last month and helping dYdX, Sorare, Immutable and others to serve millions of customers. We are thrilled to deepen our relationship with the team behind such a foundational technology.”

Until now, StarkWare’s technology has been available only to clients through its scaling engine StarkEx.

We’ve settled over $200 billion and settled over 50 million transactions.”

StarkWare’s particular scaling solution is what’s called a zero-knowledge rollup; it processes a number of transactions on its platform and inscribes the bundled data to the Ethereum network. Unlike competing “optimistic rollups,” which rely on a network of validators to ensure that the bundled data is legitimate after it’s published, zero-knowledge proofs leverage cryptography to mathematically ensure that everything is up to snuff before publishing it. Those cryptographic proofs require more computational effort than other solutions, but their more secure architecture has led plenty of developers to believe they are the future of scalability for the Ethereum network.

Some of StarkWare’s customers include ConsenSys, Immutable, dYdX and Sorare.

Starkware layer 50m sequoias

“Blockchains today simply can’t handle the volume of transactions required for mass use,” said Eli Ben-Sasson, Co-founder and President at StarkWare. “The math-based technology invented by StarkWare is the invisible hand that increases blockchain’s bandwidth, giving it the capacity to serve everyone.”

“This valuation makes us more confident than ever in our vision. By empowering blockchains to scale globally, people of any economic status will gradually be able to stop entrusting data into the hands of big companies, and control it themselves instead.”

StarkWare is powering some of the biggest crypto success stories. The company has instituted a new highly-efficient method for blockchain-based computation, which is used by some of the leading platforms and applications around the world.

Layer-2 (L2) blockchains, which build on the Ethereum network, offloading the computational stresses while still writing transaction data to the main network.

StarkWare, which builds an Ethereum scaling solution called StarkNet, has just closed a $50 million Series C led by Sequoia Capital. The raise comes several months after the firm raised a $75 million Series B led by Paradigm, a crypto VC firm co-led by former Sequoia Capital partner Matt Huang.

This latest raise values the Israeli startup at a whopping $2 billion.

Crypto VC firm Paradigm debuts monster $2.5 billion fund

As the Ethereum network continues to swell in popularity despite traction from competing blockchains with deeper efficiency, investors are starting to dump more money into the infrastructure startups aiming to help Ethereum scale to more users and more transaction volume.

But this is about to change – the Series C funding will support the full deployment of the StarkNet platform (a “Layer 2” in blockchain jargon), which will let anyone build blockchain apps using StarkWare’s ground-breaking technology. This technology is expected to power a new generation of blockchain-based apps.

“Congested blockchains and high transaction fees are the biggest impediment to building mass-scale crypto apps for all, to meet the everyday needs of the general population,” said Uri Kolodny, Co-founder and CEO at StarkWare. “StarkNet will change this.

They include dYdX, Sorare, and Immutable X which in turn delivers our technology to many companies including TikTok. As more efficient use of blockchain drives down transaction fees and carbon footprint, they save millions of dollars weekly and prevent harm to the planet.

“StarkWare is attacking one of the most important problems in crypto – the computational scalability of the blockchain,” said Mike Vernal, partner at Sequoia. “StarkWare is the clear market leader in terms of zero-knowledge roll-ups, powering over $100 billion in transaction volume just last month and helping dYdX, Sorare, Immutable and others to serve millions of customers. We are thrilled to deepen our relationship with the team behind such a foundational technology.”

Until now, StarkWare’s technology has been available only to clients through its scaling engine StarkEx.

As opposed to Optimistic rollups, ZK-rollups generate zero-knowledge proofs for validating transactions.

StarkEx and StarkNet

StarkWare’s Ethereum scaling engine StarkEx is used by several crypto projects, including dYdX, Sorare, and Immutable. Kolodny said StarkEx has settled over $200 billion worth of trades, facilitating about 50 million transactions and serving hundreds of thousands of users at “dramatically cheaper” gas costs.

StarkWare is now set to launch StarkNet Alpha on mainnet Ethereum by the end of this month, said Kolodny. The key difference between StarkEx and StarkNet is that the former is a permissioned tailor-made scaling engine, while the latter is a permissionless decentralized ZK-Rollup that supports independent deployment of smart contracts.

StarkNet platform (a “Layer 2” in blockchain jargon), which will let anyone build blockchain apps using StarkWare’s ground-breaking technology. This technology is expected to power a new generation of blockchain-based apps.

“Congested blockchains and high transaction fees are the biggest impediment to building mass-scale crypto apps for all, to meet the everyday needs of the general population,” said Uri Kolodny, Co-founder and CEO at StarkWare. “StarkNet will change this. It will lead to a blockchain building boom that will make blockchain apps as much a part of our everyday lives as smartphone apps.”

Contact:[email protected] +972 52 685 2055 For media kit click here

About StarkWare

StarkWare, a four-year-old startup, offers a cryptographic compression service which allows blockchains to scale by orders of magnitude.

  • “We’re starting a blockchain building boom,” say company Co-founders
  • Blockchain bandwidth is too small to meet ever-growing demand
  • StarkWare scaling tech solves this; inspires further $50M investment and new valuation
  • TEL AVIV, Nov. 16, 2021 /PRNewswire/ — StarkWare, the company promising crypto apps for all, has secured $50 million in a funding round led by Sequoia Capital, valuing the company at $2 billion.

    The Series C funding comes just seven months after a $75 million Series B round — reflecting the importance of scaling blockchain for wider use in the modern economy.

    “Blockchains today simply can’t handle the volume of transactions required for mass use,” said Eli Ben-Sasson, Co-founder and President at StarkWare.

    That means with StarkNet, any developer can write and deploy their smart contracts permissionlessly.

    StarkWare hopes to bring “crypto apps for all” with StarkNet. StarkWare’s other co-founder Eli Ben-Sasson said in the interview that StarkNet will help make blockchain technology “usable by a much wider population.”

    Several projects have committed to building on StarkNet, including MakerDAO, Aave, and Argent, said Kolodny.

    When asked whether Uniswap is looking to partner with StarkWare, Ben-Sasson said, “we’re very hopeful that Uniswap will join us, but that’s up to their governance process to do that.” Uniswap currently uses Ethereum Layer 2 scaling solutions from Optimism and Arbitrum that use optimistic rollups.

    When token?

    StarkWare’s Series C round comes just seven months after its $75 million Series B round in March.

    The math-based technology invented by StarkWare is the invisible hand that increases blockchain’s bandwidth, giving it the capacity to serve everyone.”

    “This valuation makes us more confident than ever in our vision. By empowering blockchains to scale globally, people of any economic status will gradually be able to stop entrusting data into the hands of big companies, and control it themselves instead.”

    StarkWare is powering some of the biggest crypto success stories. The company has instituted a new highly-efficient method for blockchain-based computation, which is used by some of the leading platforms and applications around the world.
    They include dYdX, Sorare, and Immutable X which in turn delivers our technology to many companies including TikTok.

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