Israel Launches $280 Million Aid Program to Support Struggling High-Tech Firms Amid Currency Crisis

The Israeli Innovation Authority and Ministry of Finance have introduced a rapid assistance program totaling one billion shekels (approximately $280 million) to support Israeli high-tech startups and growth companies facing financial difficulties. This initiative aims to prevent mass layoffs and company closures triggered by the strengthening of the shekel against the dollar and the rise of artificial intelligence replacing some jobs.

Eligible companies are young startups and growth firms under 15 years old with annual expenses between 1.5 million and 100 million shekels. They must demonstrate that their expenses exceed revenues in the past year, that at least half of their expenses are research and development costs, and that at least half of their expenses are incurred in Israel and paid in shekels. The program targets companies with less than 12 months of operational runway left, offering grants of up to 15 million shekels each to extend their activity by six months, enabling them to meet technological milestones and secure better funding conditions.

Applications opened on July 26, 2026, with responses expected within about a month. The program was launched following a rapid appreciation of the shekel, which has harmed companies raising capital in dollars but paying salaries in shekels. According to the Innovation Authority, companies that raised funds for two years of operation effectively lost about 20% of their planned runway, forcing earlier capital raises. Recent data showed 62% of companies had begun layoffs, 47% shifted operations abroad, and 29% halted new hiring.

Dror Bin, CEO of the Innovation Authority, emphasized the strategic importance of maintaining continuity for these companies, calling Israel's high-tech sector a central engine of economic growth. Alon Stoppel, chairman of the Innovation Authority, highlighted the state's duty to provide financial backing against extreme market fluctuations to preserve Israel's competitive edge and its high-quality human capital.