StarkWare, an Israeli blockchain company valued at $8 billion, launched a $4 million fund on Thursday to support blockchain startups in Africa.
The fund will focus on pre-seed and seed-stage startups in West, South, and East Africa, particularly those building on StarkNet, StarkWare’s Ethereum-based decentralised application platform.
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StarkWare’s $4 million fund
The fund, led by Kheireddine Kamal, an African entrepreneur and investor, will provide grants of up to $150,000, with potential for further investment up to $500,000 for promising projects.
StarkWare is looking for startups with technical expertise and local business insight, especially those in countries facing high inflation, unstable exchange rates, or low financial inclusion.
Kamal stated, “We are looking for projects in African countries that have economic conditions such as high inflation, unstable exchange rates, or low financial inclusion, with a local population interested in blockchain”.
Boosting blockchain startups in Africa
To be eligible, startups should have teams of one to five members committed to developing real-world products exclusively on Starknet and should have moved beyond the ideation stage.
The fund will prioritise Francophone startups in West and Central Africa, East Africa, Nigeria, and Ghana.
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Eli Ben-Sasson, StarkWare’s CEO, emphasised the company’s vision, stating, “Blockchain presents a unique opportunity for many parts of Africa to leapfrog outdated infrastructures and democratise access to financial tools with more decentralisation and transparency”.
StarkWare aims to support blockchain-based financial solutions that bypass traditional banking systems, leveraging the continent’s youthful population and increasing crypto usage.
Kamal also noted the long-term potential of StarkNet in Africa, saying, “StarkNet is a particularly interesting path to blockchain, as it is currently a Layer 2 over Ethereum and plans to also operate over Bitcoin”.
StarkWare believes Africa is ripe for blockchain adoption, given the expected surge in digital financial transactions in the coming years.