Diverse Startups: Incentive Programs for Ultra Orthodox and Minorities
The incentive programs for Ultra Orthodox and minorities are sub-programs of the Early Stage Incentive Program.
Goal of the incentive program:
To provide investors with a positive signal and to create an incentive for investment in early stage companies owned by minority or Ultra Orthodox entrepreneurs that constitute a critical factor in encouraging the growth and development of the Israeli high-tech industry.
Who is the incentive program for?
Israeli companies in all of the industry’s sectors, at the beginning of their activities, interested in developing or upgrading innovative products, improving local production processes and continuing operation and growth in Israel. Companies that at least 33% of their shares are owned by an entrepreneur from the Haredi or minorities sector.
What do you get?
- A grant of 75% of the project’s approved budget in the first year and 70% in the second year.
- Companies in this incentive program can submit a further request under the Early Stage Companies Standard Program up to a maximum total grant of NIS 5 million during a cumulative period of up to two years.
- The opportunity to raise supplementary financing up to six months after the date of approval.
Why should you apply for this incentive program?
Increased Grants for specific populations
Assistance during Establishment Stages: The sub-program enables young startup companies to overcome the difficult stages of establishing a startup and of raising funds during the product development stage.
Positive Signal to Investors: The possibility of raising supplementary financing for up to six months after the project’s approval assists companies in their efforts to mobilize investment during the early stages of operation.
Attractive Funding Model: The program assumes the risks associated with the company’s development stage but does not participate in the profits or future successes. The companies receiving benefits undertake to repay the received funding to the Innovation Authority via royalty payments from sales, but only if the project succeeds in reaching the commercialization stage according to royalties’ directives.
For further details: Diverse Startups