StarkWare’s $4M Fund to Boost Blockchain in Africa

StarkWare has launched a $4 million venture fund to back blockchain startups in Africa spearheaded by Kheireddine Kamal, a seasoned African entrepreneur and investor.

StarkWare will focus on early-stage teams, particularly those at the pre-seed and seed stages, with an emphasis on projects aiming to deploy their solutions on Starknet, the zero-knowledge (ZK) rollup massively scaling Ethereum.

Early-stage startups can apply for grants of up to $150,000, with larger investments available to more advanced teams (generally up to $500,000). Grants are designed to help projects at different stages of development. StarkWare is particularly interested in teams that combine technical expertise with business acumen, and are looking to deploy their blockchain projects on Starknet.

Africa is expected to house a third of the world’s youth by 2025. The region’s economic outlook is also promising, with $6.7 trillion in consumer and business spending forecast by 2030. When viewing those stats alongside a 2,500% surge in crypto adoption since 2021, it’s clear Africa is ripe for blockchain adoption.

Kamal’s focus for the fund is to target regions with populations that are eager to embrace blockchain, such as West Africa, East Africa, and South Africa, where many resourceful and resilient entrepreneurs face structural barriers, such as high transaction fees, broken financial systems, and exclusion from the global digital economy. By combining funding, mentorship, and technical expertise, this initiative will help African founders overcome these challenges and scale their projects globally.

Kamal, a Moroccan-born entrepreneur with a wealth of experience in the tech ecosystem, is passionate about empowering Africa’s digital economy. Having lived and worked across South Africa and other parts of the continent, Kamal has witnessed firsthand the transformative power of technology. He stresses that for Africa, Web3 is not just another technology, but rather a gateway to self-sovereignty and financial independence.

“For much of the blockchain industry, talk of financial inclusion for the unbanked and benefits for Africa has never gone beyond virtue signaling,” said Kamal in the announcement of the fund. “We’ve decided it’s time for the next phase, and we’re putting our money where our mouths are.”

Starknet, specifically, provides a significant catalyst for African blockchain adoption. As a Layer 2 network scaling Ethereum, Starknet offers speed (2-second transaction confirmation), cost effectiveness (sub-cent fees), and expansive network capacity, which are essential for addressing the needs of Africa’s rapidly growing digital economy.

Eli Ben-Sasson, CEO and co-founder of StarkWare, emphasized blockchain’s unique opportunity for Africa:

“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.”

StarkWare’s new venture fund is a step toward realizing the transformative potential of blockchain in Africa. By empowering startups and supporting the continent’s rapidly evolving digital landscape, StarkWare is helping lay the foundation for Africa’s blockchain-driven future.