The Israel Innovation Authority launched on Sunday a NIS 1 billion funding program for startups affected by the current strengthening of the shekel against the dollar in the currency exchange market.

The fund aims to provide a financial hand for technology startups and early-stage projects whose runway -capital available to operate the company before closing- has been shortened due to the rapid appreciation of the shekel against the dollar.

Companies that access this funding will need to have less than 12 months of runway and will be able to apply for a maximum of six extra months of runway in order to keep investing in development, research, or growth plan execution.

According to the authority, the fund will be provided as grants through an “accelerated application review and approval process” to offer rapid solutions to affected startups.

“The new program is designed to provide high-potential companies with the time and certainty they need to continue growing, achieve important technological and business milestones, and enter their next funding round, or continue executing their business plans, from a stronger position,” said Dror Bin, CEO of the Israel Innovation Authority.

How does the funding work?

Companies will be able to apply to a fund that would cover between 33% and 50% of the required expenses for six months of operational activities, while the rest must be matched through additional financing,

Some options for obtaining additional funds include fundraising rounds, a Simple Agreement for Future Equity (SAFE), a loan, new revenue, or similar sources.

Innovation, Science and Technology Minister Gila Gamliel said, “Israeli high-tech is far more than an economic growth engine; it is a reflection of the entrepreneurial spirit, creativity, and resilience of Israeli society. Our policy is to provide certainty, foster innovation, and give high-potential companies the conditions they need to continue breaking new ground.”

The program aims to help companies in their development stage, with eligible companies having annual expenses of at least NIS 1.5 million but no more than NIS 100 million, while the maximum amount available to receive is NIS 15 million.

The application system is designed to offer a response within four weeks, with applications being open from Sunday.

Dr. Alon Stopel, Chairman of the Israel Innovation Authority, added: “The Israeli high-tech sector has repeatedly demonstrated its resilience and ability to navigate periods of crisis. Yet it is our responsibility to provide systemic support amid extreme macroeconomic volatility. The joint initiative we are advancing together with the Finance Ministry reflects the State’s deep commitment to safeguarding the engine of Israel’s economy.”

The authority explained that the program was made possible by additional funding from the Finance Ministry.

Additional details about the program

The Innovation Authority added that companies interested in the program must have an operational runway of less than 12 months and be no more than 15 years old.

Additionally, companies that have not raised capital during the past three years but finance part of their operations through sales revenues will also be eligible, provided they can demonstrate that at least 50% of their revenues are generated in foreign currency. 

The application process will also require them to submit a business plan and a development and research plan, and to undergo evaluation of the company’s quality control, technological assets, and commercial potential.

“The evaluation will consider, among other factors, the level of innovation, the quality of the company’s technological assets and products, its competitive advantage, the strength of its intellectual property portfolio, growth potential, target market size, the capabilities of its management team, the quality of its investors, its ability to raise capital, and its expected contribution to the Israeli economy,” the authority said.

This post was originally published on here.