The Israeli blockchain industry has grown to encompass over 200 startups as of 2018, according to the Israeli Blockchain Association, an organization that aims to educate, develop and empower the local blockchain community.
The 200-plus startups were featured in the organization’s third Israeli Blockchain Startup Map, released Thursday.
The organization reports that 57 Israeli Blockchain startups are concentrated in the financial tech (fintech) category, while 37 companies are in the protocols/core Infrastructure sectors, with 23 in the security sector, which has seen a large increase.
Twenty blockchain startups have ceased to operate since the beginning of the year, according to the report.
“The Israeli blockchain industry is currently experiencing both a boost and a transformation,” says Roman Gold, founding partner of the Israeli Blockchain Association. “On the one hand, we see unprecedented growth among blockchain startups, but on the other hand, many of them are skipping ICOs (initial coin offerings) in favor of equity financing.”
“Today there are fewer startup founders coming out of morally questionable markets, such as Forex, binary trading, and gambling. Instead, more institutional players are starting to enter the market. Thus, the market is going through self-purification,” he adds.
Local blockchain startups have tripled since the beginning of the year and the Israeli Blockchain Association says it expects the number of companies in the industry to further double by next year.
“Israel has a good chance to strengthen its Startup Nation brand, as well as become the ‘Blockchain Nation'”, – says Gadi Isaev, managing partner of the Israeli Blockchain Association, “This is happening thanks to effective regulation and the close cooperation of many blockchain startups with educational and academic research organizations.”
According to the First Israeli Blockchain Report released in this month by One Alpha, part of the First Digital Assets Group with a mission to provide financial products and services for the emerging blockchain ecosystem, Israeli blockchain and crypto-currency companies have raised some $1.228 billion through ICOs in the ecosystem in 2018, while $163 million was raised in equity rounds. The report was released at the Israel Blockchain Summit, in cooperation with HFN, EY Israel, Latham & Watkins and First Digital Assets, in Tel Aviv on Thursday.
On a global level, there are currently 4,300 blockchain projects and startups across the world, according to the report, and some $20 billion was raised via ICOs in the first nine months of 2018.