The Israel Innovation Authority and the Ministry of Finance are launching a new NIS 1 billion fast-track funding program to support startups and early-stage growth companies adversely affected by the appreciation of the shekel against the US dollar. The Innovation Authority explains that many companies raise capital or sell their products in dollars, while most of their expenses, among them employee salaries, are paid in shekels. Every dollar they raise or earn is now worth less in shekels, and so their cash is sufficient for less time than they planned.
The new program is designed to help young technology companies with less than 12 months of runway. It will enable them to extend their operational runway by an additional six months through grants, matching funding, and an accelerated application review and approval process. The program will allow companies to continue investing in research and development, execute their growth plans, and reach significant technological and business milestones.
The grant will cover either 33% or 50% of the required funding, equivalent to approximately two or three months of runway, and must be matched through additional financing, such as a new fundraising round, a SAFE agreement, a loan, new revenues, or similar sources. The maximum grant available under the program will be NIS 15 million.
The Innovation Authority says that the new program is part of a broader initiative to preserve the strength of Israel’s high-tech sector during a period of macroeconomic volatility. Its objective is to prevent high-potential technology companies from scaling back operations, laying off employees, or being forced to raise capital earlier than planned solely as a result of exchange-rate fluctuations.
Companies selected under the program will receive grants designed to extend their operational runway by an additional six months. The grant will cover either 33% or 50% of the required funding, equivalent to approximately two or three months of runway, and must be matched through additional financing, such as a new fundraising round, a SAFE (Simple Agreement for Future Equity) agreement, a loan, new revenues, or similar sources. The maximum grant available under the program will be NIS 15 million. The Innovation Authority has not said how many companies it expects will benefit from the aid program, or what the average grant per company will be.
The program is intended for startups and early-stage growth companies whose expenses exceeded their revenues during the 12 months preceding their application. Eligible companies must also have annual expenses of at least NIS 1.5 million but no more than NIS 100 million, with at least 50% of total expenditures allocated to research and development and at least 50% of total expenditures incurred in Israel and denominated in Israeli shekels. In addition, applicants must have an operational runway of less than 12 months, and the company must be no more than 15 years old.
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Companies that have not raised capital during the past three years but finance part of their operations through sales revenues will also be eligible, provided they can demonstrate that at least 50% of their revenues are generated in foreign currency. This requirement is intended to ensure that companies growing through revenue, rather than fundraising alone, are also demonstrably affected by the appreciation of the shekel and therefore qualify for support.
Applications will open on July 26, 2026, and the Innovation Authority says that applicants will receive a decision within four weeks of submission.
Israel Innovation Authority CEO Dror Bin said, “The rapid appreciation of the shekel has significantly eroded the value of both capital raised and revenues generated by young companies, shortening their operational runway precisely at the stage when they must continue investing in research, development, and accelerating growth. The new program is designed to provide high-potential companies with the time and certainty they need to continue growing, achieve important technological and business milestones, and enter their next funding round, or continue executing their business plans, from a stronger position.
“Preserving the continuity of innovative companies during their growth stages is of strategic importance to the Israeli economy, as these are the companies expected to become the leading technology companies of the coming years.”
Published by Globes, Israel business news – en.globes.co.il – on July 26, 2026.
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