Israeli Startups Raised $600 Million Through ICOs in 2018
Israeli startups have brought in more than $600 million in funding from initial coin offerings (ICOs) in the first three quarters of 2018, according to an industry record.
Crypto research and analytics firm One Alpha researched ICOs and blockchain projects globally, from the last year, aiming to provide an overview on the condition of the blockchain and ICO ecosystem, with a specific focus on Israel.
1 Alpha’s poll counted 140 active blockchain-related companies in Israel, which, when combined with different forms of investment, have received $1.3 billion worth of investments. “More than 60% of those companies and 88% of the funds are ICO-related,” the report noted.
What’s more, the token sale figures exceed the funds raised for business startups through traditional seed and angel venture capital investments for this period as well.
The $600 million figure represents an increase over 2017’s numbers, in line with the overall leap in ICO expansion seen this year. But it wasn’t a massive jump for Israel-specific ICOs, with One Alpha finding that firms in the country raised $586 million in total during 2017 involving less than 20 nominal sales.
Yaniv Feldman, CEO of One Alpha, told CoinDesk, said the figures talk to the potency of the blockchain ecosystem in Israel more broadly.
“Israelis are less than 0.1 percent of global people while making 3 to 5% of global ICO fundraising sum is definitely something which shows that Israel is one of the most crucial concerning blockchain creation,” he said.
As previously reported, 2018 found Israeli regulators clarifying their positions on issues related to cryptocurrency in blockchain. For example, back in March, the Israel Securities Authority urged regulations that sought to distinguish so-called usefulness tokens from crypto-assets which are considered securities, a move that came several months after officials released a draft plan for its tax of ICOs in January.
Looking to the future, Feldman commented that Israel isn’t interested in being overly crypto-friendly, compared to authorities such as Malta or Gibraltar. He contended that Israel would instead control the industry in this manner that uplifts neighborhood firms, adding that the nation is specifically seeking to U.S. regulators as an example.