1. About the Program
The Round A Incentive Program in the Startup Fund is designed to encourage the growth of high-risk, early-stage R&D-intensive startups in Israel by expanding their available funding sources. The Israel Innovation Authority (IIA) will co-invest in Round A stage companies along with private investors, reducing risk for investors and encouraging investment realization.
2. Goal of the Round A Program
- Encourage the growth of startups with deep technological innovation in Israel
- Expand funding sources for Israeli Round A stage startups in high-risk, R&D-intensive fields
- Encourage private investor Round A investments in Israeli startups
- Increase investor activity, especially in areas with relatively few specialized investors and limited private capital
3. Who is the Program for
The program is designed for Israeli Round A stage startups developing high-risk, R&D-intensive products. The Israel Innovation Authority will co-invest in Round A stage investment rounds for companies that have raised no more than 50 million ILS since their incorporation until three months before the application month, and whose total revenue does not exceed 30 million ILS in the last calendar year before application.
The Round A track is intended for Israeli companies developing innovative technologies to complete the development of a new technological product (including pilot testing), to promote it commercially in target markets, and to build internal capabilities and infrastructure for the company’s growth and establishment as a fully-fledged company with high returns for the Israeli economy.
4. What Do You Get
The Israel Innovation Authority will co-invest in Round A investment rounds with a grant covering 30% of the investment round up to a grant ceiling of 15 million ILS. Companies operating in development areas will receive an additional 10% on the grant, raising the ceiling to 16.5 million ILS.
5. Why Should You Join the Program
- Pre-Approval for Multi-Year Grant – Fixed-rate grant for multiple years
- Synchronization – Aligns the startup’s capital raising with grant acquisition from the Israel Innovation Authority
- Risk Reduction for Private Investors – Helps secure necessary capital by reducing investor risk
- Certainty – Fixed investment amount and duration to reach financial milestones
- Support for the Entire Company’s Activities – Non-dilutive funding
- Participation in Development Risks – The IIA shares development risks, with repayment only if the project reaches sales
- Quality Seal of the IIA – Attracts private investments
6. Program’s Terms and Conditions
- The company must be legally incorporated in Israel and primarily engage in commercial R&D
- Total funding raised by the company from establishment until three months before application must not exceed 50 million ILS
- The company’s total revenue in the last calendar year before the application must not exceed 30 million ILS
- Requested investment round must not exceed 75 million ILS in total for a period of up to 36 months, with at least 50% of the investment round dedicated to R&D
7. Application Evaluation Criteria for Round A Grant
- Technological Aspect – Innovation level, complexity, and feasibility of the R&D plan
- Business Aspect – Economic growth potential, market size, competitive advantage, and market validation
- Economic and Capital Availability Aspect – Economic benefits, activities in sectors with low capital availability, and market entry challenges
- Company Capabilities – Ability to complete the plan and reach milestones, including managerial, technological, business capabilities, and investor experience
8. Submitting Round-A Grant Application to the Israel Innovation Authority?
Submitting an application to the Israel Innovation Authority requires careful planning and professional expertise. Professional assistance enhances the chances of securing a grant and meeting track requirements. If uncertain about how to apply for the Round A grant, need help preparing materials, or require guidance, contact us. Our team specializes in assisting startups through the process, including writing applications to improve grant success likelihood.
9. Comprehensive Fundraising Support
Companies must complete the investment round and present final agreements with investors within a time frame set by the committee (up to 6 months). At Outstand Consulting, we offer comprehensive fundraising services, including developing investor materials, preparing for pitches, and leading fundraising efforts. Our expertise increases the chances of meeting deadlines and securing necessary funding for your startup.
