Israel Innovation Authority is Delaying NIS 100 Million-Worth of Grant Payments
Israel’s prized tech industry is the latest to be affected by the country’s political limbo, with unapproved government budget halting payments to startups
12:3104.11.19
The Israel Innovation Authority (IIA), the Israeli government’s tech investment arm, is delaying NIS 100 million ($28.34 million) in grant payments to 250 Israeli tech companies, among them many startup companies. A startup CEO told Calcalist on condition of anonymity that his company’s grant is used to pay employee salaries.
IIA CEO Aharon Aharon. Photo: IIA
In a letter sent to relevant companies and reviewed by Calcalist, IIA CEO Aharon Aharon said that the authority did not receive its budget on time and therefore needed to postpone payments. Aharon said the delays were the result of Israel’s political limbo. Israel is currently operating under a limited government following two inconclusive elections this year, and the government budget has yet to be approved.The authority is doing all it can to hasten the process, Aharon wrote.
IIA CEO Aharon Aharon. Photo: IIA
IIA’s annual budget, NIS 1.6 billion (around $453 million), is awarded to companies via several grant avenues. These government grants enable young companies to focus more on development and less on fundraising.
A spokesperson for the authority told Calcalist that IIA is certain the government wants the best for the tech industry and will transfer the money shortly, as promised.
