The Israel Innovation Authority (IIA) has introduced a new fast-track grant opportunity intended to help Israeli technology companies address shortened cash runway resulting from recent exchange-rate pressures, particularly the strengthening of the shekel against the US dollar and other foreign currencies, alongside continued financing market constraints.
The initiative reflects the IIA’s broader responsiveness to industry-wide challenges affecting the Israeli technology sector, including the practical impact on companies whose investments are largely raised in US dollars while a significant portion of their operating expenses are incurred in shekels. Indeed, this is not the first time that the IIA has introduced fast-tracks for the provision of its grants; in the past it did the same in response to both the COVID-19 pandemic and to the Israel-Hamas war that broke out on October 7, 2023.
The program is designed as a temporary financing bridge for qualifying companies with limited runway, enabling them to seek support for R&D activities that may extend their operating horizon by an additional six months. According to the IIA, applications will be reviewed through an accelerated process, with decisions expected on an expedited timetable.
Program overview
The fast-track program is intended for Israeli technology companies that have already built meaningful business and technological value (such as proprietary technology, product infrastructure, customer relationships, commercial traction, an experienced team and investor backing), but now require additional time to reach the next technological or commercial milestone.
The program operates through two separate tracks:
1. Start-up track
This track is aimed at younger technology companies that were incorporated within the last three years and whose total company expenses in the year preceding the application exceeded NIS 1.5 million but did not exceed NIS 4 million.
For this track, the grant may cover 33% or 50% of the approved budget, subject to the IIA Research Committee’s determination, up to a maximum grant amount of NIS 2 million.
2. Early growth track
This track is aimed at more established Israeli technology companies in an early growth stage. It applies to companies incorporated more than three years ago, or companies whose expected expenses during the runway extension period exceed NIS 4 million. Under the published conditions for this track, the company must generally have been incorporated no more than 15 years before the date of application, and total company expenses in the preceding year must have exceeded NIS 1.5 million but not exceeded NIS 100 million.
For this track, the grant may cover 33% or 50% of the approved budget, subject to the IIA Research Committee’s determination, up to a maximum grant amount of NIS 15 million.
Core eligibility themes
While each track includes detailed cumulative conditions, the main eligibility themes include the following:
- the applicant must be an Israeli company seeking support for an R&D program;
- the company must have a current runway of no more than 12 months from the beginning of the month in which the application is submitted;
- the requested support must be intended to extend runway by an additional six months;
- the company must demonstrate meaningful technological and commercial assets, as well as long-term business potential;
- total company expenses in the preceding year must have exceeded total revenues;
- at least 50% of total company expenses in the preceding year must have been incurred in Israel;
- R&D expenses must have accounted for at least 40% of total company expenses in the preceding year;
- the company must have raised investment during the previous three years, or alternatively, if it did not do so, more than 50% of its revenues must be denominated in foreign currency;
- the relevant R&D is generally required to be carried out in Israel and by Israeli residents, subject to limited exceptions; and
- the applicant must own the intellectual property and know-how resulting from the approved R&D program.
An important practical point is the complementary funding requirement. The applicant must show additional financing that, together with the grant, supports the requested runway extension, and that financing already certain before the month of application may not count for that purpose.
In addition to the specific fast-track conditions, companies should bear in mind that the IIA’s general rules continue to apply to grants awarded under this framework, including, among other things, royalty repayment obligations and restrictions on the transfer of IIA-funded know-how, intellectual property rights and transfer our of Israel of related manufacturing rights, in each case subject to the terms of the Innovation Law, the applicable regulations and the IIA’s approval requirements.
Review criteria
The IIA has indicated that applications will be evaluated on both technological and commercial grounds, including:
- the level of technological innovation and feasibility;
- the business growth potential of the company and the relevant market opportunity;
- competitive advantage, including IP strength and market validation;
- the contribution to the Israeli economy;
- the company’s management, engineering and execution capabilities; and
- the extent to which the grant is expected to make a meaningful difference to the company’s runway and ability to continue operating.
Timing and application process
The submission window is scheduled to open on July 29, 2026 and close on November 19, 2026 at 12:00 p.m. (Israel time).
The IIA expects the Research Committee to review applications frequently, generally on a weekly basis other than during holiday periods, and states that applicants should expect a response within approximately 20 to 30 business days following submission of a complete application. This rapid review is one of the main benefits of this track.
What companies should do now
Companies that may be eligible should consider taking the following steps promptly:
- Assess eligibility early – confirm which of the two tracks applies and whether the company satisfies the runway, expense, R&D, revenue and incorporation-period requirements. Review the question of complementary funding.
- Review runway calculations carefully – because eligibility depends on a runway cap of 12 months, companies should ensure that their assumptions, burn-rate analysis and supporting figures are internally consistent and well documented.
- Prepare the financing narrative – applicants should be ready to explain how exchange-rate pressures and funding conditions have affected runway, and how the requested grant would help bridge the company to the next material milestone.
- Gather supporting materials – this may include financial statements, budget files, cap table and financing history, IP and product materials, commercial evidence, and information regarding customers, revenues and investor support.
- Check prior and current IIA participation – companies should verify whether any active IIA programs may affect eligibility or route them to a different funding framework.
- Align the application package – because the IIA has noted that inconsistencies between forms may create issues, companies should ensure that the narrative materials, financial data and budget workbook are fully aligned before submission.
- Leave time for a complete filing – the IIA will only accept complete and compliant applications, so companies should aim to submit well in advance of the deadline rather than rely on a last-minute filing.
Takeaway
The new fast-track runway extension program may offer a useful short-term funding opportunity for Israeli technology companies facing near-term financing pressure. For companies that meet the program conditions, the accelerated timetable and potential grant support may provide a meaningful opportunity to extend runway and preserve momentum while advancing toward the next financing or commercial milestone.
We assist companies in assessing eligibility, aligning the financial, legal and commercial materials and addressing IIA-related IP, royalty and regulatory issues. Companies considering an application are encouraged to contact us promptly, well ahead of the November 19, 2026 deadline.
