Israel Bolsters Key High-Tech Sector With Wartime Stimulus Package  

Israel has approved a stimulus package to bolster its renowned high-tech industry during the current war against Hamas in Gaza, as funding for startups has become more of a challenge.    

The stimulus package forms part of the 2024 wartime budget passed on January 15, and was drafted by the Finance Ministry’s Budget Division in conjunction with the Israel Innovation Authority, the branch of the government dedicated to promoting the high-tech sector. 

The package includes three central funds aimed at encouraging Israeli and foreign investment in new tech companies: 

New YOZMA Fund (Institutional Investment Catalyst): Israeli investment in Israeli venture capital funds via a “fund of funds” model, which will be used to support the high-tech sector. This will see an investment of more than 4 billion shekels over a four-year period. 

Revolutionary Startup Fund: A collaboration with private investors to raise more than 500 million shekels per annum for pre-seed, seed and Series A rounds. This will be available for startups who have limited access to funds. 

Its focus will be startups that are working on breakthrough innovation or display technological strength. 

New Venture Creation Incubators’ Fund: An innovation fund that uses an advanced investment model, including a tender process for international companies. 

This fund will help to set up innovation incubator hubs that will provide financial backing and improve global collaboration in the field of deep-tech (startups based on scientific or engineering innovation). 

The new package is a reflection of the importance to Israel of its high-tech sector, which is world famous and accounts for almost 20 percent of the national GDP. 

“The high-tech sector is our natural resource, and we are determined to do whatever is necessary to ensure its strength,” said Israel Innovation Authority CEO Dror Bin. 

“If the high-tech sector flourishes, the country thrives, and if it contracts, the entire Israeli economy will follow suit.”