StarkWare initiates a $4 million financial backing for blockchain developments in Africa
StarkWare, a leading blockchain technology company, has announced the launch of a new $4 million fund aimed at supporting six to eight African blockchain startups annually [1]. This initiative will provide grants and venture capital investments to blockchain projects based in Africa, with a focus on developing blockchain innovation within the continent.
The fund is designed to support African blockchain startups, although specific eligibility criteria have not been detailed. The initiative targets the African blockchain ecosystem, indicating a geographical and sector-specific focus [1]. The investment focus is on blockchain startups, which likely includes projects working with decentralized finance (DeFi), decentralized identity, and other blockchain applications, as these are growing sectors in Africa [3].
Resources offered include grants, venture capital, and potential access to StarkWare’s technologies and ecosystem support. Grants provide non-equity funding to kick-start or scale projects, while venture capital investments support growth and expansion [1]. The fund may also offer access to StarkWare’s scalability solutions for blockchains, developer tools, and community/networking events [1][5].
The fund will prioritize startups in Francophone West and Central Africa, East Africa, Nigeria, and Ghana. Projects must be committed to developing real-world products exclusively on Starknet, StarkWare’s Ethereum layer-two scaling protocol [1]. New startups can secure grants of up to $150,000 from the fund, disbursed in KPI-based tranches. Teams further along in their startup journey may receive up to $500,000 in investments and equity funding [1].
The funding program includes a 12-month accelerator aimed at helping startups grow into independent, self-sustaining businesses [1]. Morocco-born entrepreneur Kheireddine Kamal is heading the fund for blockchain startups in Africa [1].
The funding crunch for African blockchain startups is attributed to factors such as regulatory complexities, market fragmentation, and a consumer base with low income and spending power [2]. Despite these challenges, some blockchain firms continue to invest in African startups, with the Ethereum Foundation giving grants to 10 African blockchain projects through its Ethereum support program between January and September last year [2]. The announcement was made during Starknet’s community call on Feb. 3 [1].
This fund is a targeted effort to boost African blockchain startups by providing a mix of grants and investments annually, with an emphasis on developing blockchain innovation within the continent [1]. However, detailed eligibility requirements have not been publicly specified [1].
[1] StarkWare (2024). StarkWare Launches $4 Million Fund for African Blockchain Startups. [Online]. Available: https://starkware.co/news/starkware-launches-4-million-fund-for-african-blockchain-startups/
[2] Cointelegraph (2024). African blockchain startups face funding crunch due to regulatory complexities, market fragmentation. [Online]. Available: https://cointelegraph.com/news/african-blockchain-startups-face-funding-crunch-due-to-regulatory-complexities-market-fragmentation
[3] Blockchain Africa (2023). Africa’s Leading Blockchain Hubs: A Comprehensive Guide. [Online]. Available: https://blockchainafrica.co/africas-leading-blockchain-hubs-a-comprehensive-guide/
[4] StarkWare (2023). StarkNet: The Ethereum Layer-2 Scaling Protocol. [Online]. Available: https://starkware.co/starknet/
[5] StarkWare (2023). StarkWare Developer Tools. [Online]. Available: https://starkware.co/developers/
- The new $4 million fund launched by StarkWare will focus on supporting African blockchain startups annually, providing non-equity grants and venture capital investments to aid the growth of these projects.
- The funding program prioritizes startups in Francophone West and Central Africa, East Africa, Nigeria, and Ghana, with a 12-month accelerator program designed to help them grow into independent businesses.
- The initiative targets the African blockchain ecosystem, focusing on developing blockchain innovation within the continent, possibly in areas such as decentralized finance (DeFi), decentralized identity, and other blockchain applications.
- Projects must be committed to developing real-world products exclusively on Starknet, StarkWare’s Ethereum layer-two scaling protocol, and may be eligible for grants of up to $150,000 or investments and equity funding of up to $500,000.
- Africa's blockchain startups face various challenges, including regulatory complexities, market fragmentation, and a consumer base with low income and spending power, but some blockchain firms continue to invest in these startups, recognizing their potential for innovation and growth in the digital assets and finance sectors.
