Tnufa Program of the IIA

What should you know about the Tnufa Grant application?

1. About Tnufa Track

The Tnufa Incentive Program is designed for early-stage entrepreneurs seeking to develop and advance innovative technological ideas through grants for initial research and development, leading to proof of concept (POC) and/or building a primary prototype.

2. Goal of the Program

• Support the technological feasibility and business viability of the project
• Enable the entrepreneur to raise private capital and/or find a business partner for further development

3. Who is the Program for?

• Individual entrepreneurs or groups of entrepreneurs residing in Israel
• Companies (as per guidelines) engaged in various industrial sectors

4. What Do You Get?

• Projects approved by the research committee will receive a grant of up to 80% of the approved budget, up to a maximum grant of 200,000 ILS for 12 months. The maximum requested budget in the application documents should not exceed 250,000 ILS for 12 months.
• Tnufa grant funds are used for building a prototype, intellectual property protection, and initial business development, including materials, degradable components, subcontractors, technical consultants, marketing consultants, patent attorneys, and exhibition expenses (not intended for salaries and overhead expenses).
• The Tnufa track support is available for a cumulative period of up to one year.

5. Why Should You Join the Program?

• Quality Seal – Tnufa investment allows entrepreneurs to assess the project’s feasibility and reflects professional and objective confidence in the project’s potential. This support can help entrepreneurs raise additional capital following the initial funding.
• Convenient Conditions – Entrepreneurs are not required to leave their current job or establish a company as a condition for receiving Tnufa support. They do not need to forfeit their rights to the project or allocate shares to the state in return for the grant.
• Continuity within the Innovation Authority – After the Tnufa support period, the project can apply to other support tracks offered by the Israel Innovation Authority, such as Technological Innovation Labs, Technological Incubators, Biotechnology Incubators, Periphery Entrepreneurship Incubators, Seed Fund, Early-Stage Companies, R&D Fund, Bi-National Funds, and more.

6. Program’s Terms and Conditions

• Applicants must be individual entrepreneurs or groups of entrepreneurs residing in Israel. For companies registered in Israel:
  • The company’s annual revenue must not exceed 200,000 ILS in the same calendar year.
  • The total funding raised since the company’s establishment must not exceed 500,000 ILS.
  • Entrepreneurs must hold company shares as individuals (not through their owned companies).
  • If the company is co-owned by entrepreneurs and an Israeli academic/research/medical institution or any other entity, grant recipients must comply with the intellectual property rights agreement specified in the Tnufa Program guidelines.
• Applicants must adhere to reporting obligations, registration requirements, royalty obligations, and knowledge and intellectual property retention requirements in accordance with the Innovation Law, Incentive Track No. 9, and program guidelines.
• Grant recipients must repay the funding received from the Israel Innovation Authority via royalty payments of 3% of annual revenues if the project reaches commercialization and sales stages.

7. Application Evaluation Criteria

• Technological Innovation – The level of technological innovation and uniqueness of the proposed project.
• Implementation Challenges – The level of challenges in implementing the proposed project.
• Applicant’s Capabilities – Including business and technological capabilities.
• Feasibility – The ability to complete and realize the proposed project.
• Economic Growth Potential – The economic growth potential of the applicant due to the success of the proposed project.
• Contribution to the Israeli Economy – The project’s potential technological and employment contributions to the Israeli economy.
• Grant’s Impact – The grant’s contribution to significantly advancing the idea towards raising capital and further development and commercialization.

8. Submitting an Application to the Israel Innovation Authority

Submitting an application to the Israel Innovation Authority requires careful planning and professional expertise. Professional assistance in the submission process can enhance your chances of securing a grant and help your company meet the track’s requirements. Professional and precise preparation of grant applications is a crucial part of the process. If you are uncertain about how to apply for the Tnufa track, need assistance in preparing the materials, or require guidance in the submission process, we invite you to contact us. Our professional team specializes in assisting startups through the process, including writing the application in a way that improves the likelihood of receiving the grant.