ByZELI GREENBERGJULY 27, 2026 15:35Israeli hi-tech is receiving a government boost that will inject a aggregate NIS 2-3 billion into start-up coffers by the end of the year to deal with the weakening of the dollar against the shekel, according to an announcement by the Finance Ministry and the Innovation Authority on Sunday.This is a dedicated emergency program under which the Innovation Authority will provide approximately NIS 1 billion to allocate 33% to 50% of the required amount to start-ups and early growth companies to extend their operating horizon (runway) by six months.Thus, although the official scope of the program stands at NIS 1 billion, the matching mechanism raises the effective amount that will be injected into hi-tech to approximately NIS 2 to 3 billion.The money will be provided only to companies whose operating horizon is shorter than 12 months and which will enable its extension by half a year, with its receipt, as stated, contingent on obtaining the remaining half to two-thirds from matching private financing.Threshold conditions under the program include a company age of no more than 15 years, annual expenses of between NIS 1.5 million and NIS 100 million of which at least half are for research and development conducted in Israel in shekels, and which do not exceed the company's revenues in the 12 months preceding the submission date.Companies that have not raised capital in the last three years but are funded by revenues will be required to show that at least half of their revenues are in foreign currency.To the question of whether the program's amount is sufficient relative to the extent of the damage to the hi-tech sector, the authority responded that the program was not designed to cover the total damage to the sector resulting from the appreciation of the shekel, but only the segment of companies at immediate risk of survival.Kerem Nevo, deputy director-general and head of the growth division at the Innovation Authority (credit: PR)Who will benefit, and who will not see a shekelThe data show that every start-up that addresses the global market and raises capital in dollars is experiencing an average decrease of about 20% in cash flow, but the track being launched by the authority is not a "green" track, and not every company that meets the threshold conditions will automatically receive a grant.Kerem Nevo, deputy director-general and head of the growth division at the Innovation Authority, told Walla Money that "the authority will examine each application and its unique characteristics in a committee, and if we assess that the reasons for the company's distress are not the appreciation of the shekel but a loss of competitive advantage, and assess its survival potential as low, the company will not receive funding. On the other hand, excellent companies with groundbreaking products and a strong potential market are precisely what we are looking for in this track."The Innovation Authority previously operated a similar fast track immediately after October 7, when it received about 800 applications and answered 250 of them, about a third of applicants. That is, most companies that apply to the track are expected to leave empty-handed, with a runway that continues to shrink.Not a grant, a loan with interestIt should be noted that this is not a grant without consideration. The authority requires repayment of the money from the company's future revenues, with interest. If the company does not survive and does not generate revenues, the money will not be returned.The central question that remains open is what will happen in half a year, assuming the shekel remains strong against the dollar into 2027 as well?The authority admits that this is a temporary move intended to buy time, not to solve the structural problem. Nevo said: "This is an emergency track designed to extend the companies' runway by exactly half a year to deal with the uncertainty of the current reality. It is a risk management approach in the face of a changing reality."Alongside this, a Finance Ministry team is expected to be established with the participation of the Innovation Authority to examine long-term measures to increase Israel's competitiveness for the entire hi-tech sector."Dror Bin, CEO of the Innovation Authority (credit: HANNAH TAYEB, official site)Dror Bin, CEO of the Innovation Authority, added that "even excellent companies are liable to be harmed by macroeconomic changes that do not depend on them. The rapid appreciation of the shekel created significant erosion in raised funds and revenues precisely at the stage when young companies are required to continue investing in research, development, and accelerating growth."The new track is designed to give those high-potential companies the time and certainty they need to continue growing, complete technological and business milestones, and arrive stronger at the next funding round, or continue realizing their business plan. Maintaining the continuity of activity of innovation companies in the growth stages is considered of strategic importance to the Israeli economy, as these are the companies from which the large technology companies of coming years are expected to grow."Follow us on Google