The Israel Innovation Authority has announced special measures for startup companies encountering difficulties because of the outbreak of war in Israel. The Authority’s announcement says, "The Israel Innovation Authority will launch a fast-track grant channel with an initial allocation of approximately NIS 100 million for around 100 Israeli startup companies with significant technological assets, and short runways for companies struggling to raise funds from their existing investors during these challenging times.
"The matching process will include contributions from private investors, which are expected to total more than NIS 200 million. The channel, operating under the R&D fund program, is designed for Israeli companies who need additional funds to extend their runway, giving them more time to fully utilize their available resources."
Applications for this program will open in November.
Minister of Innovation, Science and Technology Offir Akunis said, "Our policy of providing rapid support, in collaboration with the Ministry of Finance, will prevent critical damage to the high-tech industry. This policy will be the central tier in the ability of the Israeli economy and its growth engine to quickly return to a path of growth at the end of the war."
Israel Innovation Authority CEO Dror Bin said, "The high-tech sector, which has faced declining investment volumes over the past 18 months, is also impacted by the current crisis. This impact is more pronounced in startup companies that urgently need funding, especially during a challenging period when it is difficult to conduct new financing rounds. The Innovation Authority is committed to continue providing innovative companies with a sufficient security-net to help the Israeli high-tech sector thrive in the post-crisis era.
"This grant channel is aimed at technology companies at the product development or initial sales stage with significant technological assets, including companies in the active fundraising phase. The Authority will quickly evaluate applications under different criteria, including: the company's technological assets, runway, its investors' available funding, and the impact on employees and infrastructure.
"In addition, considering the challenges posed by the Iron Swords War, the Research Committee of the Innovation Authority approved a series of relief and supportive measures for high-tech companies to help them deal with the difficulties that have arisen since the outbreak of the war. The concessions were approved with immediate effect, for a duration of 90 days."
Following a request by the Authority to the EU and the Directorate of the Horizon Europe program, the deadline for submissions for the EIC Accelerator program has been extended by 20 days, from October 19 to November 8, and in the Pathfinder Challenges program, the submission deadline has been extended from October 18 to October 25.
Published by Globes, Israel business news - en.globes.co.il - on October 19, 2023.
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