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Innovation Authority launches NIS 1 billion solution for companies hit by shekel-dollar crisis

From Jerusalem Post · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The Israel Innovation Authority launched a NIS 1 billion funding program to support technology startups facing financial challenges due to the shekel's appreciation against the dollar.
  • The fund will provide grants covering 33% to 50% of operational expenses for up to six months, requiring companies to secure matching funds from other sources.
  • This initiative aims to help high-potential companies maintain development, research, and growth plans, ensuring their stability and ability to secure future funding rounds.

The Israel Innovation Authority has introduced a significant financial lifeline for the nation's technology startups. A new NIS 1 billion (approximately $267 million) funding program aims to cushion the impact of a strengthening shekel against the U.S. dollar, a currency fluctuation that has shortened the operational runway for many companies.

The new program is designed to provide high-potential companies with the time and certainty they need to continue growing, achieve important technological and business milestones, and enter their next funding round, or continue executing their business plans, from a stronger position.

— Dror BinCEO of the Israel Innovation Authority, explaining the program's objective.

The program specifically targets startups and early-stage projects with less than 12 months of capital remaining. Eligible companies can apply for grants to cover 33% to 50% of their expenses for an additional six months. This support is contingent on the companies securing matching funds from other sources, such as new fundraising rounds, loans, or revenue.

Dror Bin, CEO of the Israel Innovation Authority, emphasized the program's goal: "The new program is designed to provide high-potential companies with the time and certainty they need to continue growing, achieve important technological and business milestones, and enter their next funding round, or continue executing their business plans, from a stronger position." The authority plans an accelerated review process to ensure rapid deployment of funds.

Israeli high-tech is far more than an economic growth engine; it is a reflection of the entrepreneurial spirit, creativity, and resilience of Israeli society. Our policy is to provide certainty, foster innovation, and give high-potential companies the conditions they need to continue breaking new ground.

— Gila GamlielMinister of Innovation, Science and Technology, on the importance of the high-tech sector.

Innovation, Science and Technology Minister Gila Gamliel highlighted the broader significance of the high-tech sector, calling it a "reflection of the entrepreneurial spirit, creativity, and resilience of Israeli society." The initiative, supported by the Finance Ministry, underscores the state's commitment to safeguarding Israel's economic engine during periods of macroeconomic volatility. Dr. Alon Stopel, Chairman of the Israel Innovation Authority, noted the sector's proven resilience but stressed the government's responsibility to provide systemic support.

The Israeli high-tech sector has repeatedly demonstrated its resilience and ability to navigate periods of crisis. Yet it is our responsibility to provide systemic support amid extreme macroeconomic volatility. The joint initiative we are advancing together with the Finance Ministry reflects the State's deep commitment to safeguarding the engine of Israel's economy.

— Dr. Alon StopelChairman of the Israel Innovation Authority, on the need for systemic support during economic volatility.
DistantNews Editorial

Originally published by Jerusalem Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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