Israel launches NIS1b aid program for tech companies hit by strong shekel
The Israel Innovation Authority and Ministry of Finance are launching a new NIS 1 billion fast-track funding program to support startups and early-stage growth companies affected by the strong shekel.
The program is designed for innovative companies with substantial Israel-based research and development expenses, whose dollar-denominated revenue or financing has been eroded by the shekel’s appreciation. Eligible companies must have annual expenses of at least NIS 1.5 million and no more than NIS 100 million, with at least 50% of total expenditures allocated to R&D and at least 50% of total expenditures incurred in Israel in shekels.
The aid package is intended to help preserve companies during their growth stages, when they are viewed as strategically important to Israel’s future technology sector. The Innovation Authority has not said how many companies are expected to benefit from the program or what the average grant size will be.
The initiative follows growing pressure from Israel’s technology sector over the impact of currency appreciation on companies with significant shekel-denominated payroll and R&D costs.
Read more in Globes.
