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Provided is a method of generating hematopoietic lineage cells comprising a step of directing differentiation of iPSCs to hematopoietic lineage cells. The directing differentiation comprises steps of (i) contacting iPSCs with a composition comprising a BMP pathway activator, and optionally bFGF, to obtain mesodermal cells and (ii) contacting the mesodermal cells with a composition comprising a BMP pathway activator, bFGF, and a WNT pathway activator, to obtain mesodermal cells having definitive hemogenic endothelium potential which are capable of providing hematopoietic lineage cells, wherein steps (i) and (ii) are without a step of forming embryoid bodies.