Tel Aviv [Israel], January 16 (ANI/TPS): Israel's government, in collaboration with the Israeli Innovation Authority, approved what it described as a "transformative stimulus package" that it said is aimed at "elevating Israel's standing as a global high-tech hub."
The plan will put USD 1 billion into high-tech.
The announcement came on the same day as the government passed Israel's 2024 state budget.
The stimulus plan will include several initiatives the government says are intended to at strengthen Israel's high-tech ecosystem. These include Revolutionary Startup Fund: A new startup fund will be launched that will collaborate with private investors to inject over half a billion shekels annually into seed, pre-seed, and Series A rounds for startups with limited access to capital.
This fund will strategically focus on startups exhibiting technological depth and breakthrough innovation.
New YOZMA (Hebrew for initiative) Fund (Institutional Investment Catalyst): An investment fund will be established to encourage Israeli institutional entities to invest in Israeli venture capital funds, utilising a Fund of Funds model. Over 4 billion shekels (more than USD 1 billion) will be invested jointly over a 5-year period, bolstering the high-tech ecosystem.
The New Venture Creation Incubators' Fund: An innovation fund will be set up with an advanced investment model, featuring a tender process that allows international companies to participate. This includes the establishment of innovation incubator hubs in a venture creation model that provides financial backing and enhances global collaboration in deep-tech technological vectors.
Minister of Finance, Betzalel Smotrich, "Israel's security challenges demand a budgetary focus from us, but we are determined to invest in growth engines. The Israeli high-tech sector is the engine leading the economy, and we are giving it exactly the boost it needs at this time."
He added that the program will enable direct funding for "young tech companies with a short runway and will provide a significantly larger injection of around a billion dollars to Israeli venture capital funds by offering incentives to institutional entities." (ANI/TPS)
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