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innovation israel

Incubators Incentive Program

This incentive program is designed for entrepreneurs who are interested in establishing a startup company based on an innovative technological concept. A technological incubator is a center for entrepreneurship intended to invest in new startup companies and provide them with administrative, technological and business support.

The incubator offers a supportive framework for the establishment of a company and development of a concept into a commercial product. The incubators are selected through competitive processes for a license period of eight years and are spread across Israel. The list of incubators operating in Israel is available on the Authority website.

Goal of the Incentive program:

Supporting entrepreneurs with innovative technological concepts at the initial stage of R&D who are having difficulty in raising private capital and need the program’s assistance to reduce risk and reach a significant fundable milestone.

Who is the incentive program for?

  • Private entrepreneurs interested in establishing startup companies
  • New Israeli startup companies owned by private entrepreneurs interested in developing a commercial product
  • Research institutions interested in establishing startup companies under the Incubator Program based on groundbreaking studies
  • Entities interested in establishing technological incubators in Israel

What do you get?

  • The conditional grant provided as part of this incentive program is 85% of the approved budget, up to NIS 3.5 million for a period of up to two years or up to NIS 6 million for a period of up to three years (depending on project type and geographical location of the incubator). Companies implementing the project in Area ‘A’ Development Regions will receive additional funds.

  • The grant provided as part of the Biotechnology Incubator is 85% of the approved budget, up to NIS 8.1 million for a period of up to three years.

  • Supplementary investment financing of 15% of the approved budget provided by the incubator, which completes 100% of the total budget. No financial investment is required by the entrepreneur.

  • Comprehensive assistance from the incubator, including physical space and infrastructure, administrative services, technological and business guidance, legal advice and access to partners, additional investors and potential customers.

Why should you apply for this incentive program?

Favorable conditions for entrepreneurs: The entrepreneurs are not obliged to establish a company before the project is approved by the Authority. The incubator provides infrastructure to establish the company and project.

Experienced partner: The incubator is a partner with vast experience and expertise in leading startups and commercializing products. It facilitates follow-on investments in companies that have graduated from the incubator and assists them in market penetration.

Administration: The incubator provides the entrepreneurs with all necessary administrative and accounting services in dealing with the Authority.

Attractive conditions: Low risk, high leverage, a degree of certainty

For further details: Incubators Incentive Program


Early Stage Incentive Program

The Early Stage Incentive Program is designed for startup companies seeking to develop and promote an innovative technological project, as well as penetrate the market by raising investments from the private sector.

The incentive program offers three sub-programs: standard, minorities, and Ultra Orthodox.

Goal of the incentive program:

To provide an incentive for private investments in early stage companies engaging in R&D and that constitute a vital component in encouraging the growth and development of the high-tech industry in Israel.

Who is the incentive program for?

  • New Israeli startup companies from all industrial sectors interested in developing or upgrading innovative products and in continuing to operate and grow in Israel.
  • The incentive program offers preferential terms to companies held by minority/Ultra Orthodox entrepreneurs.

What do you get?

  • The conditional grant provided under the Early Stage standard sub-program is 50% of the approved budget (60% for companies operating in Area ‘A’ Development Regions and 75% for companies operating in the area surrounding the Gaza Strip) with a maximum grant of NIS 5 million for a period of up to two years.
  • The grant provided under the Early Stage Companies minorities/Ultra Orthodox sub-programs is 85% of the approved budget, with a maximum grant of NIS 2 million. The companies participating in these incentive programs can apply for continuation in the standard sub-program, with a maximum cumulative grant of NIS 5 million for a cumulative period of up to two years.
  • A company receiving the committee’s approval for its project will be given the opportunity to raise the supplementary funding needed for the project, up to six months after the date of approval.

Why should you apply for this incentive program?

Assistance during the establishment stages: The incentive program allows startup companies to overcome the difficulties in raising funds from the private sector.

Quality mark support: Support from the Authority is provided following a comprehensive professional assessment of the project, which serves as a mark of quality for companies in the industry in Israel and abroad. It also makes it easier for the company to raise private investment down the road.

Positive signal to investors: The possibility of mobilizing supplementary funding for up to six months after the approval of the project helps companies in their efforts to raise investments in the early stages of operation.

Attractive funding model: The incentive program offers participation in the risks involved in the company’s development process but not in future profits or successes. A company receiving benefits undertakes to repay the received funding to the Authority via royalty payments from sales, but only if the project succeeds in reaching commercialization stage.

For further details: Early Stage Incentive Program