1. TNUFA
This support is intended for inventors, entrepreneurs and start-up companies during the initial phase toward the realization of their ideas. The fund will contribute toward getting patents, the construction of a prototype to verify the viability of the idea, preparation of a business plan and the mobilization of initial capital.
The grant for this program is 85% of the approved costs up to a maximum of 210,000 NIS (Approx. $47,000).
2. Technological Incubators
The incubator provides a supportive framework for the entrepreneur in the form of an independent company that enables him to translate a commercially viable technological idea into a product that will attract investors. The R&D grant provides 85% of the approved R&D expenditures with the remainder to be raised by the entrepreneur.
There are currently, in Israel, 24 incubators spread around the country.
The following innovative approaches have been
implemented recently:
a.
An experimental program to privatize some of the
incubators. In this program a private licensee will assume the operating
expenses of the incubator and the entrepreneurs will enjoy an increased grant.
b.
A program to establish incubators that will be involved
solely in biotechnology as a result of government policy for increased activity
in this area. The biotech incubators will respond to some of the unique aspects
of this field namely the long-term nature inherent in its R&D.
For further information: http://www.incubators.org.il
3. Seed Fund
Heznek Program - The Government
seed fund
The slowdown of the world economy has caused
a decrease in the level of investments in start-up companies and consequently a
lessening in the number of start-ups formed.
In order to encourage investments and
increase the number of new companies formed the Ministry of Industry and Trade
established a new and separate vehicle to provide a positive signal to
investors and create further inducements for mobilizing investments for the
establishment of start up companies.
The
program is based on the government matching an investment in a start-up
company, proportional to the investment
of an investing entity and on giving an option to the investor to purchase the
government shares in the start up company at the initial price.
Who is a qualified investor?
·
VC Fund or Corporation active in VC or tech company
investing in similar industries
·
An investor who has the ability and manpower to
guide the management of the new company
·
An investor who has sufficient available funds
What defines a Start-Up Company?
·
R&D Company that was formed no more than 6
Months ago OR whose total expenditures have not exceeded 800,000 NIS.
·
A company which hasn't raised money from investors
– excluding primary financing for feasibility study.
The Government’s Investment
·
The Government and the investor will put up
matching funds.
·
The Government's investment will be in return for
shares of the company.
·
The Government investment will be up to 5 Million
NIS per company per two year period that will finance up to 50% of the Approved
Work Program.
·
The expenditures supported will be those related to
R&D.
The Investor’s Option
·
The Investor will be given an option to purchase
the government shares anytime within the first 5 years at the initial price
plus linkage and interest.
R&D Law
·
With reference to transfer of know-how and
manufacturing rights, the company will be bound, as are all those enjoying
government support by the R&D LAW
For further information: www.moital.gov.il/heznek.htm
Contact: Mr. Itamar Dar, Fund Manager
972-2-6662457
E-mail: itamar@ocs.moital.gov.il