Oxygen of NIS 1B for hi-tech: Who will receive state aid and who will be left out?
The government is expanding its coffers and injecting NIS 1 billion into start-ups whose operating horizon shrank due to the strengthening of the shekel against the dollar.
Israel's finance ministry and innovation authority have launched an emergency program to inject up to NIS 2.3 billion into the country's hi-tech sector over the next year. The initiative, targeting companies with less than 12 months of operating funds, aims to extend their operational runway by six months. Approximately NIS 1 billion has been earmarked for this purpose, with the remaining funds sourced through private matching investments.
Eligibility criteria include a maximum company age of 15 years, annual expenses between NIS 1.5 million and NIS 100 million, and at least half of research and development costs performed in Israel. Companies must also demonstrate a foreign currency revenue component. While the program aims to assist only those at immediate risk of collapse, the authority emphasizes its focus on groundbreaking companies with strong market potential.
The funding is contingent on future revenue generation and repayment from the companies' earnings, with interest. The initiative acknowledges that macroeconomic shifts, such as the shekel's appreciation, pose significant threats to young, high-potential startups. By providing temporary relief, the program strives to maintain the continuity of innovation companies, which are crucial for Israel's long-term technology sector growth.
Written by urgent.news from Jerusalem Post Tech & Start-Ups's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
