ISRAEL AT WARFinance Ministry increases budget for Israel Innovation Authority Fast Track channel by 300 million NIS
ISRAEL AT WAR
Finance Ministry increases budget for Israel Innovation Authority Fast Track channel by 300 million NIS
The ministry had already pledged 100 million NIS to the channel aimed to support Israel’s high-tech sector, struggling amid Israel’s war against Hamas
The Ministry of Finance is increasing the budget of the Innovation Authority's Fast Track channel to aid hi-tech companies in distress by NIS 300 million ($73.8 billion). The overall budget will stand at about 400 million NIS ($98.4 billion), although it is still unclear where the funds will come from. The finance ministry’s decision follows a meeting between Finance Minister Betzalel Smotrich, senior ministry officials and leaders from the high-tech industry to discuss the impact of the war on the high-tech industry, the required steps in the current crisis, and long-term plans for the Israeli high-tech sector.
During this meeting, representatives from Israeli and foreign venture capital funds, institutional investors, company representatives, and key players in the ecosystem presented the minister and other officials with data regarding the current state of Israel’s high-tech industry. This was in addition to data presented to them in recent days, including survey results from hundreds of companies outlining the challenges they are facing.
Based on this information, the minister was advised by industry experts to increase immediate funding sources for the high-tech industry, and the ministry has subsequently ordered an increase in the budget for the Fast Track channel for companies with a short runway. Launched this week by the Innovation Authority in response to Israel’s war against Hamas, the ministry has increased funding from 100-400 million NIS ($24.6-98.4 billion).
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. The program is aimed at technology companies in the product development stage or at the beginning of sales, which have significant technological assets, including those in an active fundraising round.
The Fast-Track program will assess applications quickly, considering various criteria, including the company's technological assets, runway, availability of investment. Application for this program will open in November 2023.
