StarkWare, an Israeli blockchain infrastructure company valued at $8 billion, has announced the launch of a $4 million fund to invest in pre-seed and seed-stage startups in Africa. This move is a significant step towards boosting blockchain adoption on the continent, where the technology is gaining traction.

The Africa-focused fund will provide grants of up to $150,000 to early-stage startups, with larger investments available for projects building on StarkNet, StarkWare's proprietary decentralized application platform that operates on the Ethereum blockchain. The fund will target high-potential startups across West, South, and East Africa, focusing on teams that combine strong technical skills and local business acumen to create scalable blockchain solutions.

According to Kheireddine Kamal, Head of Africa Ventures at StarkWare, the company is looking for projects in African countries with economic conditions such as high inflation, unstable exchange rates, or low financial inclusion, where there is a local population interested in blockchain. This approach is expected to empower African businesses to bypass traditional financial systems while benefiting from blockchain's scalability and cost-efficiency.

Selected startups will also receive mentorship and have the potential to secure further investments from StarkWare, up to $500,000, with the possibility of larger amounts for exceptional projects. This comprehensive support will enable African startups to overcome the challenges of building and scaling blockchain-based solutions.

Africa's youthful population, projected to reach 2.5 billion by 2050, combined with rapidly increasing crypto adoption, positions the continent as a global digital powerhouse. With $6.7 trillion in consumer and business spending forecast by 2030, blockchain adoption is accelerating, and StarkWare's investment fund is well-positioned to capitalize on this trend.

"Blockchain presents a unique opportunity for many parts of Africa to leapfrog outdated infrastructures and democratize access to financial tools with more decentralization and transparency," said Eli Ben-Sasson, StarkWare CEO and co-founder. This sentiment is echoed by Kamal, who noted that StarkNet's "scaling squared" approach also means a "liquidity squared" approach, which can be particularly beneficial for Africa.

StarkWare, founded in 2018 by Eli Ben-Sasson, Uri Kolodny, Michael Riabzev, and Alessandro Chiesa, develops zero-knowledge proof systems to address scalability challenges in blockchain networks like Ethereum. The company's primary products include StarkEx, a scaling engine launched in June 2020, and StarkNet, a decentralized Layer 2 network introduced in June 2021 that enables scalable decentralized applications (dApps) with lower fees.

As the blockchain landscape continues to evolve, StarkWare's investment fund is a significant development that is expected to have a lasting impact on the African tech ecosystem. With its focus on supporting high-potential startups and empowering local businesses, the fund has the potential to drive innovation, create jobs, and contribute to the continent's economic growth.