Israeli startups to gain access to over $6 million each under new incubator program
State-backed initiative aims to bridge funding gaps for high-risk, early-stage tech ventures.
Israel is moving to strengthen its high-tech sector with a new initiative aimed at encouraging investment in some of the most capital-intensive and high-risk areas of technology.
On Sunday, the Israel Innovation Authority announced plans to select up to three new technological incubators that will help develop companies in fields such as semiconductors, advanced robotics, and bio-convergence. Each incubator will receive state support to cover management costs, build a central laboratory, and provide early-stage funding for startups that are typically considered too risky for private investors to back alone.
The program will offer selected incubators up to NIS 40 million (about $11.9 million) over five years, alongside broader non-dilutive investments for the companies that operate within them. Individual startups may be eligible for cumulative state grants of up to NIS 21 million (about $6.25 million) to help them progress from initial research to more advanced funding rounds.
Dror Bin, CEO of the Israel Innovation Authority, said the move is part of a wider effort to maintain Israel’s position as a leading global innovation hub at a time when other countries are expanding their own support for advanced technologies.
“Technological incubators have always been the starting point for Israeli deep-tech,” Bin said. “We want these new entities not only to build strong companies but to attract strategic partners from Israel and abroad who will bring additional capital and connections.”
Under the new framework, incubators will focus on helping companies at the very early stages of development, either starting from scratch or spinning out research from Israeli universities, and continue supporting them through the first major fundraising rounds. The aim is to fill a funding gap where private capital is often cautious, especially in fields that involve long development timelines and significant technological risk.
The Innovation Authority said applicants for the incubator program must prove they can secure at least NIS 120 million (about $35.7 million) in funding, to be used both for operating the incubator and investing in the companies it hosts. Proposals will be evaluated on factors including financial strength, the experience of the management team, partnerships with local and international investors, and plans to attract and develop promising ideas.
Startups that join the incubators may be eligible for grants at several stages, including ideation, pre-seed, seed, and Series A, with the government matching private investment at gradually decreasing rates. Additional support will be available for companies founded by entrepreneurs from under-represented communities or for those based in Israel’s economically challenged regions.
The Innovation Authority expects to keep the competitive tender open for about nine months. It hopes the selected incubators will attract both domestic and international investors and help create companies that can compete globally in sectors that are critical to Israel’s economic future.
