The Israel Innovation Authority announced on Sunday that it is expanding its budget for the Startup Fund project that supports early-stage deep-tech companies in the country.
Its flagship Startup Fund aims to reduce investor risk in breakthrough deep-tech technologies that requires long development cycles. Deep-tech is characterized as “disruptive technologies” based on profound scientific discoveries, advanced engineering, and rigorous research that create entire new capabilities to solve massive global and industrial challenges.
The Startup Fund is one of the authority’s core projects, combining government investment with private-sector capital.
Under the new framework, the authority’s maximum investment in approved deep-tech companies will increase from 1.5 million shekels (~$500,000) to 2 million shekels (~$670,000) at the pre-seed stage, and from five million shekels (~$1.67 million) to six million shekels (~$2 million) at the seed stage.
The changes are designed to help startups secure sufficient capital in an increasingly challenging fundraising environment, the authority stated.
As part of these enhancements, companies operating in National Priority Area A or led by entrepreneurs from under-represented populations will be eligible for even higher investment ceilings, increasing the authority’s maximum participation to 2.2 million shekels (~$740,000) at the pre-seed stage and 6.6 million shekels (~$2.2 million) at the seed stage.
The new budgetary framework will come into effect on July 15.
