StarkWare launches $4M fund for African blockchain projects
The fund looks to empower six to eight African blockchain startups yearly through grants, venture investments and accelerators.
StarkWare, the developer of Starknet, an Ethereum layer 2 network, has announced a $4 million fund to support blockchain startups in Africa.
The fund aims to support developers in creating projects on the company’s Ethereum layer-two scaling protocol, Starknet.
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Investment focus and eligibility
- Morocco-born entrepreneur Kheireddine Kamal is heading the fund, which aims to invest in six to eight early-stage projects annually.
- Speaking during Starknet’s community call on Feb. 3, Kamal said that the fund will prioritize two-founder teams with a mix of business and technical expertise, whose projects have moved beyond the ideation stage.
- Eligible startups should have teams of one to five members and must be committed to developing real-world products exclusively on Starknet.
- The fund will prioritize startups in Francophone West and Central Africa, East Africa, Nigeria, and Ghana.
Key quote
- Announcing the development in a blog post on its website, StarkWare said:
“The Africa investment team 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.”
Funding details
- New startups looking to validate their ideas can secure grants of up to $150,000, disbursed in KPI-based tranches. Teams further along in their startup journey may receive up to $500,000 in investments and equity funding.
- Selected projects will also receive mentorship from experienced founders and gain access to experts in HR, marketing, and other business areas through Starknet.
- The funding program includes a 12-month accelerator, aimed at helping startups grow into independent, self-sustaining businesses.
Zoom out
- African blockchain founders have struggled to attract significant funding opportunities over the years.
- In 2023, African blockchain companies only received 6.4% of global venture funds, and only 1.8% in the first half of 2024.
- The funding crunch is attributed to factors such as regulatory complexities, market fragmentation, and a consumer base with low income and spending power.
- Despite challenges, some blockchain firms continue to invest in African startups.
- Between January and September last year, the Ethereum Foundation through its Ethereum support program gave grants to 10 African blockchain projects.
- Blockchain firms usually provide grants and investments to projects built on their blockchains to encourage adoption.
