Innovation Authority Launches 1 Billion Shekel Assistance Program for High-Tech Firms
The program aims to support young high-tech companies whose funds have been eroded by the strengthening of the shekel. Eligible firms can receive grants of up to 1 million shekels. Applications open on Sunday, July 26.
The Israel Innovation Authority and the Ministry of Finance are launching a new 1 billion shekel assistance program for companies affected by the strengthening of the shekel against the dollar. The Authority notes that many companies raise capital or sell products in dollars, while most expenses, such as employee salaries, are paid in shekels. Consequently, every dollar raised or earned is worth less in shekels, causing funds to run out faster than anticipated.
The program targets companies with less than 12 months of operational runway remaining. Selected companies can receive a grant to extend their operations by approximately six months, provided they secure additional funding from investors or other sources.
The grant will cover 33% or 50% of the approved amount, capped at 1 million shekels. It is contingent upon the company presenting proof of additional funding, such as new capital, a SAFE agreement, a loan, or revenue. Although 1 billion shekels has been allocated, the Authority has not yet disclosed the expected number of beneficiaries or the average grant size.
Who is eligible?
To qualify, companies must meet the following criteria:
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Annual expenses between 1.5 million and 100 million shekels.
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At least 50% of expenses allocated to R&D.
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At least 50% of expenses incurred in Israel and in shekels.
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Company age of 15 years or less.
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Expenses exceeding income.
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Less than 12 months of operational runway.
Companies that have not raised capital in the last three years and rely on revenue can also apply if they demonstrate that at least half of their income is in foreign currency. Applicants must submit a work plan and an R&D plan. Applications will be evaluated based on innovation, technology quality, target market size, management capability, and growth potential.
Applications open on Sunday, July 26, with decisions expected within four weeks. The Authority estimates that many companies have lost about 20% of their planned operational duration due to the shekel's appreciation.
Dror Bin, CEO of the Israel Innovation Authority, stated:
"The rapid appreciation of the shekel has created significant erosion in the capital and income of young companies, shortening their operational horizon just when they need to invest in growth. This program is intended to provide high-potential companies with the time and certainty needed to reach their next milestones and funding rounds."
