SEED Program

The grant encourages and leverage investments made in Seed stage companies by an experienced venture capital investor (VC Fund or Corporate venture capital), by receiving additional government funding as part of the investment round made in the company.

Goal of the Incentive Program

To increase the number of seed stage investments and to incentivize more experienced, venture capital investors to invest the young, early stage startups operating in high risk.


Who is the incentive program for?

Early-stage Israeli startups that have a signed term sheet with an experienced venture capital investor.

The grant program designated for start-up companies in the seed stage that are developing technologies in fields where there is high-risk investment, difficult regulation, a long-time frame for implementation, or a part of a market that is emerging. Such fields can be: Life Sciences, Bio-convergence, Agrofood-Tech, Cleantech, AI, Energy, Industry 4.0, etc.

The support will be given to companies that have not raised more than 3.5M NIS and have already signed a Term Sheet with an experienced VC.


What do you get?

The participating companies will receive a grant of 40% of the investment round, but no more than NIS 3.5M (1M USD). That is 40% of an investment round of up to NIS 9M (2.7M USD). In addition, companies held by under-represented populations in high-tech (minorities, ultra-Orthodox or women) entrepreneurs in the rate of at least 33% or companies located in Development Area A, will be able to receive an additional grant of 10% – yet, up to a budget ceiling of NIS 3.5M (1M USD).

The participating investor will receive from the company an option to exercise the grant approved by the Authority, for up to 3 years. If the option is not exercised by the investor, the company will have to repay the grant from royalties from the company’s income.


Why should you apply for this incentive program?

Startups – Seed-stage startups that are operating in high risk areas (e.g. challenging regulation, long time to market, new markets, few VCs) and are raising their first venture capital investment. This investment would enable you to reach their next fundable milestone.

Venture Capital Investors –co-investment with the Innovation Authority while lowering the risk of your investment in high risk startups, an opportunity to increase your equity while securing their investment terms.


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