Israel: Fast-Tracked Grant Channel for Companies in Crisis
Following a previous Israel Innovation Authority call for bids for companies developing technologies to help deal with the coronavirus crisis, the IIA has opened a channel to support companies facing financial hardships due to the virus.
These R&D grants for technology projects are provided as part of the R&D Fund Track (Benefit Track # 1), and are aimed for innovative technology companies in crisis, albeit with high long-term prospects for success.
This means companies that have already acquired material assets, such as intellectual property, as well as companies that have already raised funding or have value.
The channel is not intended for companies that already applied for funding under the R&D Fund Track or Beginning Companies Track in 2019 and 2020.
Companies who are likely to survive the crisis, but are in liquidity difficulties and have limited financial ability/strength for a period of no more than 12 months from the date of submission (short runway), can enjoy the new benefits.
To assess a company’s financial ability, in this respect, the IIA will calculate the balance of cash (minus current liabilities) and current income and investments. This amount will be divided by the monthly cash flow (burn rate). The result will be the runway required as a threshold condition for less than 12 months.
The channel offers a rapid submission mechanism for research and development programs, with a review process and answers provided within four weeks. The channel’s research committee meets weekly and the deadline for applications is September 15, 2020.
Within the channel, support for approved R&D programs can be up to NIS 15 million, with the down payment being up to 50% of the approved grant amount for companies that have presented the full complementary funding for a grant approved by the committee.
Channel support will be range between 20-50% of approved R&D expenses, with a 10% addition for companies active in Israel’s development areas and a 25% addition for companies operating in the Gaza envelope.