ByTOBIAS HOLCMAN

JULY 26, 2026 11:34

The Israel Innovation Authority introduced on Sunday a NIS 1 billion funding initiative for startups impacted by the ongoing appreciation of the shekel against the dollar in currency markets.

The program is intended to supply financial assistance to technology startups and early-stage projects whose operational runway has been reduced because of the swift strengthening of the shekel relative to the dollar.

Firms seeking this support must possess under 12 months of runway and may request up to six additional months to sustain investments in development, research, or growth execution.

The authority noted that the funding will be distributed as grants via an accelerated review and approval process to deliver swift relief to affected startups.

The new program is intended to supply high-potential companies with the time and stability required to keep expanding, reach key technological and business goals, and approach their next funding round or business plan execution from a stronger stance, said Dror Bin, CEO of the Israel Innovation Authority.

How the funding operates

Companies may apply for support covering 33 percent to 50 percent of expenses needed for six months of operations, with the balance required from other financing sources.

Additional funds can come from investment rounds, a Simple Agreement for Future Equity, a loan, fresh revenue, or comparable channels.

Innovation, Science and Technology Minister Gila Gamliel stated that Israeli high-tech represents more than an economic driver; it embodies the entrepreneurial drive, creativity, and resilience of Israeli society, with policy focused on delivering certainty, encouraging innovation, and enabling high-potential firms to advance new frontiers.

The program targets development-stage companies with yearly expenses between NIS 1.5 million and NIS 100 million, offering a maximum of NIS 15 million per applicant.

The application system aims to provide responses within four weeks, with submissions open starting Sunday.

Dr. Alon Stopel, Chairman of the Israel Innovation Authority, noted that the Israeli high-tech sector has shown repeated resilience through crises, yet systemic support is needed amid sharp macroeconomic shifts, with the joint effort alongside the Finance Ministry underscoring the state's commitment to protecting the economy's core engine.

The authority indicated that the program was enabled through extra funding allocated by the Finance Ministry.

Further program details

The Innovation Authority stated that interested companies must hold an operational runway of less than 12 months and be no older than 15 years.

Firms that have not secured capital in the past three years but cover operations partly through sales revenue may also qualify if they show at least 50 percent of revenues in foreign currency.

Applicants must provide a business plan along with development and research outlines, and undergo review of quality controls, technological assets, and commercial prospects.

The review will assess factors including innovation level, technological asset and product quality, competitive edge, intellectual property strength, growth prospects, target market scale, management capabilities, investor quality, capital-raising ability, and expected economic contribution to Israel, according to the authority.