DCVC, Founders Fund, Greenoaks, Coatue, Wing and (historically) Alameda Research Why are this companies putting money to Starknet
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Executive summary
Top-tier investors including Greenoaks, Coatue, Founders Fund, DCVC, Wing (and historically Alameda) backed StarkWare/StarkNet because they view StarkNet as a leading Ethereum Layer‑2 scaling technology with strong developer traction and a clear path to decentralisation; StarkWare raised $100M in 2022 at an $8B valuation led by Greenoaks and Coatue, a key signal to other VCs [1] [2]. These firms also participate via early StarkWare rounds and ecosystem investments (DCVC, Wing, Alameda noted among Series A/B participants and ecosystem seed rounds) that positioned them inside the StarkNet ecosystem [3] [4].
1. Why big VCs poured capital: betting on Layer‑2 scaling
Investors like Greenoaks and Coatue led a $100M Series D because StarkWare’s technology (STARK proofs + StarkEx/StarkNet products) directly addresses Ethereum’s scalability and fee problems, and investors publicly framed the raise as a bet on layer‑2 rollups’ long‑term importance—Greenoaks and Coatue cited throughput and lower fees as core drivers [1] [5].
2. Track record and signal effects: early rounds built credibility
Many of the named firms appear in earlier StarkWare financing history—StarkWare’s seed, Series A and later rounds included participants such as DCVC, Founders Fund, Wing, Alameda and others—creating an investor syndicate that signalled credibility and drew more capital into StarkNet and its ecosystem [3] [6].
3. Multiple routes to exposure: direct company rounds and ecosystem plays
These firms invested both in StarkWare (the company) and in projects building on StarkNet. For example, Alameda and DCVC show up in seed rounds for StarkNet-native projects like zkLend, and broader investor lists for StarkNet fundraising include many of the VCs named in your query [4] [7].
4. Tech-first investors and deep‑tech thesis (DCVC example)
DCVC markets itself as a deep‑tech investor and explicitly highlights cryptography and zero‑knowledge proofs as real‑world tech areas—this aligns with StarkWare’s STARK cryptography and makes StarkNet a natural fit for DCVC’s thematic strategy [8] [9].
5. Strategic timing: upgrading from StarkEx to permissionless StarkNet
StarkWare’s transition from client‑focused StarkEx to permissionless StarkNet broadened the addressable market: instead of selling bespoke scaling to enterprise clients, the platform opened to public dApp developers—this product strategy change underpins why growth‑focused VCs and crypto funds were willing to invest at scale [10] [11].
6. Greenoaks & Coatue: lead investors and valuation anchor
Greenoaks and Coatue led the Series D that set an $8B valuation for StarkWare, a valuation move that institutionalised interest and made follow‑on and ecosystem investing more likely from firms seeking exposure to a dominant layer‑2 contender [2] [1].
7. Historical caveats: Alameda’s presence and reputational risk
Alameda Research appears in historical investor lists and ecosystem seed rounds, reflecting common 2021–22 crypto investing patterns; sources list Alameda among past participants but do not analyse post‑2022 reputational changes or legal fallout—available sources do not mention those subsequent effects here [3] [4].
8. Ecosystem support beyond venture capital: foundation funding and grants
StarkNet’s own Foundation controls a majority of initial token supply and runs grants and incentive programs (including large STRK allocations for ecosystem initiatives), creating non‑VC flows of capital and developer subsidies that complement the VCs’ financial bets [12] [13] [14].
9. Competing perspectives and investor motives
The bullish reading: investors backed durable infrastructure with measurable developer traction and a migration path to decentralisation [11]. A more cautious reading—present in market write‑ups and price forecasts—is that token markets remain volatile and try to price tech progress against tokenomics; many price‑prediction sources show dramatic volatility but do not contradict the core infrastructure thesis [15] [16].
10. Bottom line: a coordinated infrastructure bet with multiple touchpoints
The money named in your query invested because StarkWare/StarkNet combined cutting‑edge zk tech, a move to a permissionless L2, clear developer adoption, and a high‑profile Series D led by Greenoaks/Coatue—VCs gained exposure via equity rounds, token/ecosystem investments, and startup seed rounds on StarkNet [1] [3] [4]. Sources document the funding rounds and investor lists but do not provide internal memos or specific LP mandates explaining each firm’s exact risk calculus—those details are not found in current reporting [10] [7].