Israel Bolstering Young Startups With Angel Investor Fund

The Israel Innovation Authority, the branch of the government dedicated to promoting the high-tech sector, has unveiled a new scheme to help early stage startups raise initial capital from private investors. 

Under the initiative, private investors both in the country and abroad are invited to form groups wishing to fund young Israeli tech startups, known as angel investor clubs. 

The IIA is creating a 9 million shekel fund to support up to three of these clubs.  Individual clubs will be able to apply for the grant, and the successful applicants will each receive 900,000 shekels per year for three years. 

According to the IIA, angel investors play a crucial role in bringing on new startups and advancing Israel’s renowned high-tech sector.  

The investors will also be encouraged to offer the startups their expertise on such legal and financial matters. 

The initiative is the latest in a series of financial steps taken by the IIA since the start of the war with Hamas last month in order to shore up the high-tech sector, a major player in the country’s economy. 

“The Israeli high-tech industry is the main growth engine of the Israeli economy for the past three decades,” said Science and Technology Minister Ofir Akunis. 

“As such, it is imperative, even in times of war, to continuously promote and develop this industry at all costs. Government support is needed in order to sustain our leading position at the top of the international high-tech market. We ensure this by first, infusing 400 million shekels and now by budgeting the operation of the Angels’ Clubs,” he said. 

“We witness the need to strengthen the issue of investments at these stages in ventures that have technological depth and high innovation. This is a complementary tool in a comprehensive tool-set that we have been upgrading in recent months,” said Israel Innovation Authority CEO Dror Bin. 

“The Innovation Authority will continue to provide solutions for the high-tech industry in routine and emergency situations to help entrepreneurs establish and grow groundbreaking companies that will form the backbone of the future of Israeli high-tech.”