American blockchain powerhouse Chainalysis has announced its acquisition of Israeli cybersecurity startup Hexagate, a company specializing in Web 3.0 and blockchain security solutions.
While the financial terms of the deal remain undisclosed, industry estimates peg the acquisition at approximately $60 million. Hexagate will continue its operations as an independent entity, retaining its entire team of 20 employees, all based in Israel.
his marks Chainalysis’ first foray into the Israeli market, further solidifying its position as a leader in blockchain analytics, transaction monitoring, and data accessibility solutions. Chainalysis, which employs around 900 people globally, serves a diverse client base, including financial institutions, governments, and law enforcement agencies.
Hexagate’s journey: Startup to acquisition
Founded in 2022 by Yaniv Nissenboim (CEO) and Niv Yehezkel (CTO), Hexagate quickly gained traction in the blockchain security space. The company raised $8.6 million in seed funding, led by Entree Capital, with participation from Samsung Next, INT3, Northside Ventures, and prominent entrepreneurs from Vdoo and Medigate, where the founders had previously worked.
Yaniv Nissenboim, a veteran of the IDF’s elite cybersecurity unit, transitioned to the private sector as a cybersecurity consultant for defense organizations before founding multiple startups. His ventures included Scientra, an algo-trading platform, and Jumper Labs, which developed virtual testing systems for IoT products. He later joined Vdoo, a cybersecurity company acquired by JFrog.
Niv Yehezkel, Hexagate’s technical mastermind, began his cybersecurity journey at the age of 14, identifying vulnerabilities and conducting research. After serving in the prestigious 8200 intelligence unit, he joined Medigate as one of its first employees, contributing to its success before its acquisition by Claroty.
“After Vdoo was acquired by JFrog, I returned to entrepreneurship and met my co-founder Niv through a mutual connection,” Nissenboim explained. “We quickly realized that the blockchain ecosystem was a wild west, with billions of dollars being stolen effortlessly due to a lack of robust security infrastructure. With our combined expertise, we knew we could tackle some of the most pressing challenges in the space.”
During their research, Yehezkel identified a $5 billion vulnerability in the Polygon blockchain network, a discovery that validated their vision and set the foundation for Hexagate’s mission.
In May 2022, Hexagate closed its seed funding round and entered a turbulent market, where demand for blockchain security solutions was still nascent. Despite these challenges, the company launched its product in April 2023 and achieved remarkable success within a year. Hexagate now boasts an ARR (Annual Recurring Revenue) of several million dollars, with a client roster that includes Coinbase, Polygon, EigenLayer, Uniswap, and Consensys. Their solutions have reportedly prevented over $1 billion in potential losses by providing real-time alerts for emerging threats.
Chainalysis’ strategic move
For Chainalysis, this acquisition represents a strategic investment in next-generation blockchain security. As the Web 3.0 ecosystem continues to expand, the integration of Hexagate’s cutting-edge tools will enhance Chainalysis’ ability to provide comprehensive security and analytics solutions to its clients. By combining Hexagate’s expertise in identifying vulnerabilities with Chainalysis’ global reach and reputation, the acquisition positions both companies to lead the charge in securing the blockchain space.
This deal underscores the growing importance of cybersecurity in decentralized ecosystems, as well as the increasing demand for solutions that can safeguard the integrity of blockchain networks and protect users from financial losses.
