Grants For Technological Projects – R&D in Early Stages

The program is dedicated for companies seeking to develop and promote innovative technology start-ups and raise funds from the private sector. Here are three routes available in the program:

• Regular route
• Minorities route
• Orthodox route

Financial support provided under this plan is designed to create a motivation for investor to start investing in research and development, and constitute an important element in the development of high-tech industry in Israel.

Relevant Companies

Early stage startups from various industries, seeking to develop innovative products/services or improve local manufacturing processes. In addition, the program offers preferential conditions to companies held by minorities.

Program Features

regular route:

• Amount of the grant may not exceed 5 million for a maximum period of two years.
• The grant is 50% of the total budget of the company. On everyone NIS that the company invests, it receives 1 NIS as a grant.
• Companies engaged in development areas eligible for additional support of 10% and companies operating in the Gaza vicinity communities are entitled to an additional 25%.
• Raising the supplementary grant funding provided by the state start about six months after the project approval.

Minorities/Orthodox Route:

• Amount of the grant may not exceed 2 million for a period up to two years.
• The grant is 85% of the total budget of the company.
• Raising the supplementary grant funding provided by the state start about six months after the project approval.

Program Benefits

• Participation at risk – the program allows young start-up companies to raise capital during the seed stage
• A positive signal to investors – the possibility to mobilize complementary funding up to six months after the approval of the project helps young start-up to be more attractive for private investors.
• Attractive financing model – no dilution occurs. The company will return the grant only when it managed to reach revenues, by paying royalties.

Targo has vast experience in submitting plans to the chief scientist, and we will be happy to help your company acquiring the funding. As part of the plan’s submission, Targo will prepare a designated business plan to the Chief Scientist, and will support our clients in meetings with the chief scientist’s representative. The purpose of the meeting with the representative is to discuss the development plan, the budget, and to clarify other points. After the meeting, the representative recommends to the evaluation committee whether or not to approve the project.