The Israeli government has launched a 1 billion shekel ($328 million) fast-track funding program to assist startups and early-stage growth companies squeezed by the rapid appreciation of the shekel against the U.S. dollar.
A joint initiative of the Israel Innovation Authority and the Ministry of Finance, it serves as a financial bridge for local tech companies that have lost 20% of their planned operational runways due to recent exchange-rate fluctuations. By extending runways by an additional six months, the program aims to prevent companies from being forced into premature fundraising rounds in a challenging market.
“Our foremost responsibility at this time is to provide them with an effective safety net and an appropriate financial bridge, enabling them to retain their exceptional human capital and technological excellence,” Israel Innovation Authority CEO Dror Bin said.
To qualify, tech companies must be no more than 15 years old and have less than 12 months of operational runway remaining. Eligible firms must show annual expenses between 1.5 million and 100 million shekels—exceeding their revenues—and dedicate at least 50% of their total expenditures to research and development incurred locally in shekels. Startups relying on sales revenue may also qualify if they can demonstrate that at least half of their revenue is generated in foreign currency.
Funding will be awarded based on a comprehensive review of a company’s technological assets, competitive advantage, intellectual property and potential contribution to the Israeli economy.
