StarkWare Industries raises $100M; valued at $8 Billion StarkWare IndustriesTel Aviv, Israel-based inventor whose technology makes blockchain scalable enough for mass adoption raised $100M at $8 billion.
The new round, which is led by Greenoaks Capital Capital and Coatue and includes Tiger Global as well as other existing and new investors. The round also includes a secondary transaction, where employees across the company sell stock. Led by Co-founder and CEO Uri Kolodny, StarkWare has deployed STARKs, a class of mathematical systems developed by company Co-founder and President Eli Ben-Sasson and other computer scientists, in order to enable far more efficient use of blockchain. It cuts fees by reducing the amount of information written to the blockchain, speeds up transactions by alleviating heavy blockchain congestion, and provides a way for blockchain to scale without any dilution of its original vision — the math ensures it remains a network that runs with absolute integrity. The company’s first platform, StarkEx, in use for two years, today handles more transactions than Bitcoin. They are compressed using STARKs and then added to the Ethereum blockchain. NFTs and businesses in finance use it to address the issue of crippling congestion on the blockchain. This causes delays and high transaction costs.