Gov-Tech – Technological Innovation for the Public Sector – (Mimshal-Tech)

This incentive program is the result of collaboration between the Innovation Authority and the Israeli Ministry for Social Equality’s “Digital Israel” project. The program is intended to encourage and assist companies and NGOs offering an innovative technological solution for public sector challenges in the fields of education, health, welfare, economy, law, local government, human capital, and others.

The public sector challenges may be one or more of the following:

• Improving government service to the public.
• Streamlining and enhancing processes in the public sector and public services.
• Providing the public with access to information.
• Protecting the public sector databases.

• To assist in the development of products and processes that will provide a solution for public sector challenges and needs via innovative technological solutions. The solution developed in the program will enable to improve the quality of service provided by government offices or public entities.

Industrial corporations and NGOs seeking to develop R&D programs directed at public sector challenges.

• For requests of up to NIS 500,000 – a grant of 75% of the approved budget.
• For requests of between NIS 500,000 – NIS 1.5 million:
  • A grant of 40%, 50%, or 60% of the approved budget.
  • An additional 10% for Area ‘A’ Development Regions
  • Startups owned by entrepreneurs from a group with preferential financing terms will be given the option for a grant of 75% in the first year and 70% during the second year.
    • Startup: a company not more than 5 years old when submitting the request.
    • Groups with preferential financing terms are defined as those of minorities and/or ultra-Orthodox and/or women (where at least 33% of the company’s share capital is held by an entrepreneur from this group), all subject to the regulations of Benefit Program No. 1.

Attractive financing model: The incentive program offers participation in the risks involved in the development process, but not in the revenues or future achievements. A supported company will repay the funding received by payment of royalties from sales, only if the entrepreneur successfully achieves commercialization.

Assistance in Initial Stages: the incentive program enables startup companies to overcome the difficulties involved in the initial stages and in recruiting capital during product development.

Support that is a local and global quality mark: support from the Innovation Authority, that is provided only following a comprehensive professional assessment of the project, serves as a quality mark for companies in the industry and makes it easier for them to recruit investors and to market their products in Israel and worldwide.
This quality mark may also assist in value propositions to strategic partners abroad, to create a basis for long-term collaboration, and to penetrate foreign markets.

First significant customer: the program constitutes the initial interface before conducting pilots at government facilities, using government infrastructures in order to conduct feasibility and applicability tests of the proposed solution.