Dark
Light
Today: May 16, 2024
January 16, 2024
2 mins read

Unveiling Israel’s Remarkable Hi-Tech Stimulus for Unleashing Innovation

TLDR:

  • The Israeli Innovation Authority (IIA) has unveiled a comprehensive stimulus package to uplift Israel’s hi-tech ecosystem.
  • The stimulus package includes a Start-up Fund, an annual injection of over half a billion shekels to support early-stage deep-tech companies.
  • A new investment fund named the YOZMA Fund will be established to encourage Israeli institutional entities to invest in local venture capital funds.
  • An innovative fund with an advanced investment model will be established, allowing international companies to participate and foster global collaboration in deep-tech technological vectors.
  • These initiatives aim to address the decline in new start-ups and dependence on foreign capital in the hi-tech sector.

The Israeli Innovation Authority (IIA), in collaboration with the Finance Ministry, has launched a comprehensive stimulus package to revitalize Israel’s hi-tech ecosystem. The package is a response to global and local factors that have affected the sector, including a decline in the number of new start-ups and an increase in the registration of Israeli companies abroad.

One key component of the stimulus package is the Start-up Fund, which will provide an annual injection of over half a billion shekels to support early-stage deep-tech companies. The fund will offer grants covering 30% to 60% of total funding rounds, depending on the stage of development. This financial backing aims to encourage the growth and success of these companies.

In addition to the Start-up Fund, the YOZMA Fund will be established to encourage Israeli institutional entities to invest in local venture capital funds. This “Fund of Funds” model will see an investment of over NIS 4 billion over five years, with the goal of fortifying the hi-tech ecosystem and attracting more investment locally.

The stimulus package also includes the establishment of an innovative fund that will adopt an advanced investment model. This fund will allow international companies to participate in the tender process and provide financial backing. It will also focus on establishing innovation incubator hubs to foster global collaboration in deep-tech technological vectors. This aspect of the stimulus package aims to enhance Israel’s position as a global hi-tech hub.

The initiative is part of a broader effort to support and foster Israel’s hi-tech sector. It complements existing programs such as the Fast Track investment program, angel investor clubs, regional technological innovation hubs, and increased grants for the Ideation program. Finance Minister Bezalel Smotrich and Innovation, Science, and Technology Minister Ofir Akunis have both expressed their commitment to supporting the hi-tech sector and believe that the stimulus package will strengthen the Israeli tech industry.

The comprehensive stimulus package aims to address the challenges faced by the hi-tech sector, such as a decline in new start-ups and a dependence on foreign capital. It also aligns with other national programs for artificial intelligence, bio-convergence, and quantum computing, positioning Israel at the forefront of technological trends.

The Israeli Innovation Authority is confident that this strategic decision will bear fruit for the next decade and help the hi-tech sector emerge stronger from the current crisis, as it has in the past. The stimulus package aims to invigorate Israel’s hi-tech landscape and promote innovation, diversity, and sustainability in the sector.

Previous Story

QDI Systems Secures €5M: Igniting Innovation and Growth

Next Story

Blueshift Upscaled: Runway’s $40 Million Boost for Growth Investment

Latest from Blog

Go toTop