Israel launches NIS 1 billion fast-track funding for startups hit by shekel gains

The Israel Innovation Authority has opened a NIS 1 billion fast-track program to help startups and early-stage growth companies that have lost runway as the shekel strengthened against the dollar. Eligible companies can receive grants and matching support to extend operating time by six months, with applications opening July 26 and decisions due within four weeks.

Why it matters: - The program is meant to keep young Israeli tech companies from cutting research, delaying growth plans, laying off staff, or raising capital earlier than planned because of exchange-rate moves. - Companies that were built around U.S. dollar funding or dollar-linked revenues have been hit twice: their runway has shrunk, and the next round now needs to be larger in shekel terms. - The initiative is part of a broader effort to protect Israel’s high-tech sector during macroeconomic volatility.

What happened: - The Israel Innovation Authority announced a NIS 1 billion fast-track funding program for startups and early-stage growth companies affected by the depreciation of the U.S. dollar against the Israeli shekel. - Applications opened on July 26, 2026. - Applicants are scheduled to receive a decision within four weeks of submission. - The program is being advanced with additional funding from the Ministry of Finance.

The details: - The program targets companies with less than 12 months of operational runway. - Selected companies can extend runway by an additional six months through grants, matching funding, and an accelerated review process. - The grant is designed to cover either 33% or 50% of the required funding, equal to about two or three months of runway. - The maximum grant under the program is NIS 15 million. - Matching funds can come from a new fundraising round, a SAFE agreement, a loan, new revenues, or similar sources. - Eligible companies must have expenses that exceeded revenues in the 12 months before applying. - Annual expenses must be at least NIS 1.5 million and no more than NIS 100 million. - At least 50% of total expenditures must be for research and development. - At least 50% of total expenditures must be incurred in Israel and denominated in Israeli shekels. - Applicants must be no more than 15 years old. - Companies that have not raised capital in the past three years can still qualify if at least 50% of revenues are in foreign currency. - Applicants must submit a detailed business plan and a comprehensive research and development plan. - Evaluation will weigh innovation, technological assets and products, competitive advantage, intellectual property, growth potential, target market size, management team, investor quality, fundraising ability, and expected contribution to the Israeli economy. - The program is intended to help companies continue R&D, complete technological milestones, validate products, strengthen commercial position, and enter the next investment round from a stronger position.

Between the lines: - The government is treating currency swings as a structural risk to Israel’s startup ecosystem, not just a temporary accounting issue. - The core policy goal is to buy time for companies that are fundamentally viable but vulnerable to exchange-rate pressure. - By tying support to matching funds and milestone-based evaluation, the program is designed to filter for companies with both urgency and financing momentum.

What they're saying: - Minister of Innovation, Science and Technology Gila Gamliel said the policy is aimed at providing certainty, fostering innovation, and preserving Israel’s competitive advantage. - Israel Innovation Authority CEO Dror Bin said even strong companies can be hurt by macroeconomic changes outside their control and need time to keep investing in growth. - Israel Innovation Authority Chairman Dr. Alon Stopel said the state needs to provide a financial bridge so companies can retain talent, continue breakthrough innovation in Israel, and preserve global competitiveness.

What’s next: - Startups and early-stage growth companies that meet the criteria can now apply for support. - The authority is expected to move quickly on approvals to get cash and matching support into companies before runway pressure forces layoffs or rushed fundraising.

The bottom line: - Israel is using public money to offset the startup damage from a stronger shekel, giving eligible tech companies a six-month runway extension to keep building before they return to market.