Incubators Incentive Program

The Incubators Incentive Program is designed for entrepreneurs who are interested in establishing a startup company based on an innovative technological concept. A technological incubator is a center for entrepreneurship intended to invest in new startup companies and provide them with technological, business and administrative support. The incubator offers a supportive framework for the establishment of a company and development of a concept into a commercial product. The incubators are selected through competitive processes for a license period of eight years and are spread across Israel. The list of incubators operating in Israel is available on the Authority website.

Objective
Direct route ("the light route") - cultivate selected incubator projects of interest through investment and strategic partnerships. Licensing/Franchising route - become an incubator licensee. To create infrastructure, select entrepreneurial projects for investment, provide administrative services and technological/business guidance to incubated companies.

Benefits
20-50% equity in the incubated companies in return for a complementary 15% investment of the R&D costs. The Israel Innovation Authority funds the other 85% of R&D costs for no equity.

Advantages
Substantial exposure and involvement in Israel's vibrant entrepreneurial scene through involvement in the incubator's operation.

Availbility
Yearlong submission of applications for the "Direct route"/ Submission per Call for Proposals for the "Licensing route"

Goal of the incentive program:
Supporting newly established start-ups to reach a fundable milestone.

Incubators Supported by the Israel Innovation Authority:
Please click here

Who is the incentive program for?

  • Entities interested in establishing technological incubators in Israel and receive a license from the Innovation Authority. 
  • Private entrepreneurs interested in establishing startup companies
  • New Israeli startup companies owned by private entrepreneurs interested in developing a commercial product
  • Research institutions interested in commercializing technologies based upon ground-breaking studies into new startup companies

What do you get?
Licensees:

  • An eight year license in leveraging private investments with significant public funds and receiving substantial equity in startup companies.  
  • Licensees in preferred peripheral regions receive a conditional grant for operational costs and the incubator’s infrastructure. 

Startups:

  • The conditional grant provided as part of this incentive program is 85% of the approved budget, up to NIS 3 million for a period of up to two years or up to 85% and NIS 5 million for a period of up to three years.  Companies developing the project in Area ‘A’ Development Regions will receive additional funds.
  • The conditional grant provided as part of the designated Biotechnological Incubator is 85% of the approved budget, up to NIS 8.1 million for a period of up to three years.
  • Supplementary financing of 15% of the approved budget is invested by the incubator. No financial investment is required by the entrepreneur.
  • Comprehensive assistance from the incubator, including physical space and infrastructuretechnological and business guidance, access to partners, additional investors and potential customers, legal advice and administrative services.

Why should you apply for this incentive program?
Licensees:
Access to the Israeli entrepreneurship and innovation ecosystem. 

Startup Companies:
Flexibility: The entrepreneurs are not obliged to establish a company before the project is approved by the Authority. The incubator provides infrastructure to establish the company and project.
Experienced partner: The incubator is a partner with expertise in leading startups and commercializing products. It facilitates follow-on investments in companies that have graduated from the incubator and assists them in market penetration.
Administration: The incubator provides the entrepreneurs with all necessary administrative and accounting services responsible for working with the Authority.
Attractive conditions: Low risk, high leverage, a degree of certainty.
Attractive funding model: The incentive program offers participation in the risks involved in the company’s development process but not in future profits or successes. A company undertakes to repay the grants received by the Authority via royalty payments from product sales.

Israeli Companies

Israeli companies seeking further information on the requirements and application process to this program, should refer to the Israel Innovation Authority's Hebrew site: https://innovationisrael.org.il/program/2698