Israel launches NIS 1 billion startup lifeline as strong shekel squeezes tech sector

The Israel Innovation Authority has launched a new NIS 1 billion (approximately $328 million) fast-track funding program to support technology companies impacted by the strong appreciation of the shekel against the U.S. dollar. This initiative targets startups with less than 12 months of operating runway, aiming to extend their operational horizon by up to six months through grants and matching financing. The program addresses the challenge faced by companies that raised capital in dollars, as the stronger shekel shortens their runway and reduces the value of future fundraising or dollar-denominated revenues.

"Their ability to finance themselves has been weakened by the appreciation of the shekel, despite being excellent companies. This program is designed to help them bridge that gap,"

said Dror Bin, CEO of the Israel Innovation Authority. Eligible companies must have annual operating expenses between NIS 1.5 million and NIS 100 million, with at least half of their spending on R&D and half of total expenses incurred in Israel in shekels. The program, open to all technology sectors, will provide grants covering 33% or 50% of additional funding required, up to NIS 15 million, with companies needing to secure matching financing.