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Israel pushes for deep tech start ups with Israel Innovation Authority’s new funding program

From Jerusalem Post · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The Israel Innovation Authority increased funding for early-stage deep tech startups by 33% to encourage economic growth.
  • Pre-Seed stage startups can now receive up to NIS 2 million, and Seed stage startups up to NIS 6 million.
  • The program prioritizes companies in National Priority Area A and those led by under-represented entrepreneurs.

Israel is boosting its support for early-stage deep tech startups through a significant funding increase from the Israel Innovation Authority (IIA). The authority announced on Sunday that it is raising the funding limits for its Start Up Fund by 33%, aiming to provide crucial capital for young companies to reach commercial viability and become future economic drivers.

Our objective is to enable more Israeli companies to reach their next milestones, attract investment, and become the growth engines of Israel's economy over the coming decade.

— Gila GamlielInnovation, Science and Technology Minister, on the goals of the new funding program.

Under the revised program, pre-Seed stage startups, which are companies yet to receive their initial investment, can now receive up to NIS 2 million. Companies in the Seed stage, representing the first investment round, are eligible for up to NIS 6 million. These new ceilings represent a substantial increase from previous limits of NIS 1.5 million and NIS 5 million, respectively. The IIA also confirmed that funding for Series A stage startups remains unchanged at NIS 15 million.

"Our objective is to enable more Israeli companies to reach their next milestones, attract investment, and become the growth engines of Israel's economy over the coming decade," stated Gila Gamliel, Innovation, Science and Technology Minister. Dror Bin, CEO of the Israel Innovation Authority, emphasized the importance of supporting deep tech companies at their earliest stages, noting the high technological risks involved. "Israeli innovation begins with young companies that are willing to tackle major challenges and develop new technologies," Bin said.

Israeli innovation begins with young companies that are willing to tackle major challenges and develop new technologies. This is especially true at the Pre-Seed and Seed stages, where deep-tech companies are at the very beginning of their journey and technological risk is at its highest.

— Dror BinCEO of the Israel Innovation Authority, explaining the importance of early-stage support.

The initiative also prioritizes companies operating in National Priority Area A or led by entrepreneurs from under-represented populations. These companies can receive up to NIS 2.2 million at the pre-Seed stage and NIS 6.6 million at the Seed stage. The move aligns with a global trend toward increased investment in deep-tech sectors like semiconductors, hardware, energy, biotech, and life sciences, which are seen as key to future economic competitiveness.

This measure is designed to strengthen Israel's next generation of startups, encourage technological entrepreneurship, and ensure that tomorrow's breakthrough ideas have a genuine opportunity to grow and succeed.

— Dror BinCEO of the Israel Innovation Authority, on the broader aims of the funding increase.
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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