Early Stage Companies Incentive Program

Program's Description

The Early Stage Incentive Program is designed for startup companies seeking to develop and promote an innovative technological project, as well as penetrate the market by raising investments from the private sector. The program offers preferred incentives to minorities and Ultra-Orthodox entrepreneurs.

Goal of the incentive program

To provide an incentive for private investments in early stage companies engaging in R&D and encouraging the growth and development of the high-tech industry in Israel.

Who is the incentive program for?

  • Israeli startup companies from all industrial sectors, that raised up to $ 10 million and with revenues up to $ 1 million in the previous year, and are interested in developing or upgrading innovative products and penetrate their target markets.
  • The incentive program offers preferential terms for companies held by Minority/Ultra Orthodox entrepreneurs.

What do you get?

  • The conditional grant provided is 50%/30% of the approved budget, up to NIS 10 million each year. Companies operating in Area ‘A’ Development Regions will receive an additional 10% conditional grant (25% if operating in the area surrounding the Gaza Strip) to the approved grant
  • Minority/Ultra Orthodox entrepreneurs can apply for preferred incentives in the first two years as follows:
    • 1st Year – The total budget is up to NIS 2.5 million and the conditional grant provided is 75% of the approved budget.
    • 2nd Year – The total budget is up to NIS 4.5 million and the conditional grant provided is 70% of the approved budget.
  • A company receiving the committee’s approval for its first year in the program will be given the opportunity to raise the supplementary funding needed for the project, up to six months after the date of approval.

Why should I join this incentive program?

Assistance during the establishment stages: The incentive program allows start-up companies to overcome the difficulties in raising funds from the private sector.
Quality mark support: Support from the Authority is provided following a comprehensive professional assessment of the project, which serves as a mark of quality for companies in the industry in Israel and abroad. In turn, this support enhances the company’s ability to raise private investment down the road.
Positive signal to investors: The possibility of mobilizing initial supplementary funding for up to six months after the approval of the project helps companies to raise investments in early stages
of operation.
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/2718