Israeli hi-tech gains a government initiative that will channel a combined NIS 2-3 billion into startup accounts by the close of the year to counter the dollar's drop versus the shekel, based on a joint statement from the Finance Ministry and the Innovation Authority issued on Sunday.

This emergency program lets the Innovation Authority supply roughly NIS 1 billion, covering 33 percent to 50 percent of needed funds for startups and early-stage growth firms to lengthen their operating runway by six months.

While the program's stated size is NIS 1 billion, the matching requirement lifts the real total reaching the hi-tech field to about NIS 2-3 billion.

Funds go only to firms with runways under 12 months that can stretch them by six months, and receipt depends on securing the balance from private sources.

Eligibility rules require companies no older than 15 years, yearly costs from NIS 1.5 million to NIS 100 million with at least half spent on Israeli research and development in shekels, and costs not exceeding revenues in the prior 12 months.

Firms without capital raises in three years but supported by revenues must prove at least half their income comes in foreign currency.

When asked if the program size matches the harm to hi-tech, the authority noted it targets only firms facing immediate survival risks rather than covering all sector losses from the shekel's strength.

Who Gains Support and Who Misses Out

Global-market startups raising dollars see roughly 20 percent cash-flow drops on average, yet the new track is selective and does not auto-approve every qualifying firm.

Kerem Nevo, deputy director-general and growth division head at the Innovation Authority, explained that each application receives committee review, and firms whose issues stem from lost competitive edge rather than currency shifts, or that show low survival odds, will be declined. Strong firms with innovative products and solid market potential are the focus.

A similar fast track after October 7 drew about 800 applications and funded 250, or one-third. Most applicants to the current track are thus likely to depart without support while their runways shrink further.

Repayable Funding With Interest, Not a Grant

The support requires repayment from future revenues plus interest. Non-surviving firms that generate no revenues owe nothing.

The open question is the outlook in six months if the shekel stays strong into 2027.

The authority views this as a short-term step to gain time, not fix deeper issues. Nevo stated it buys exactly six months of runway amid current uncertainty and serves as risk management for shifting conditions.

A Finance Ministry team including the Innovation Authority will also study longer-term steps to boost Israel's hi-tech competitiveness.

Dror Bin, CEO of the Innovation Authority, noted that even top firms can suffer from external economic shifts. The swift shekel rise eroded raised capital and revenues just as young companies must keep investing in research, development, and growth.

The track aims to give high-potential firms time and stability to hit milestones and reach stronger funding rounds or execute plans. Sustaining innovation firms in growth phases holds strategic value for the economy, as they seed tomorrow's large tech companies.