On Tuesday, the Israeli Innovation Agency announced the winners of five new technology incubators that will support entrepreneurs in their start-up phase, with a total budget of 500 million masterpieces (approximately $ 155 million). Technology incubators are set up and run by venture capitalists and local and international companies.
In a competitive process involving 13 groups, the authorities selected five groups to operate the incubators during the year. Among the winning groups are global corporations such as pharmaceutical companies, Bristol Myers Squibb, Becton Dickinson, Kyocera, Corning, CBG group, Eren Industries and others.
The selected incubators are expected to create about 150 new innovative technology companies over the next five years. To fulfill their obligations, the incubator franchises will allocate sources of funding and investment commitments to the incubator in excess of 150 million masterpieces (approximately $ 46 million).
The winning incubators are a new Strauss food technology incubator that is already working with a similar incubator; a climate incubator that includes venture capital funds and the world’s leading corporations: DK Innovation, Total Energies Carbon Solutions, Eren Industries, IP Innovative Power, Blue Minds, BGV, OSEG Group .; a medical technology incubator run by Peregrine Ventures VC, Elbit and pharmaceutical giant Bristol Myers; an incubator in space technology to be run by, among others, SpaceCom, Kyocera, Rodium and Croning, and another incubator in healthcare to be run by, among others, Arkin.
Budget up to 6.5 million masterpieces per project
Startup companies, which will be created by incubators, will be eligible to budget up to 6.5 million masterpieces per project. This includes a 60-85% grant from the Innovation Office of Israel, as well as additional funding from incubator companies. In addition, companies will enjoy the support of the incubator in the early stages, as well as ongoing investments through special investment funds created by the incubators and available to incubation companies. The winning groups will receive a five-year franchise (with the possibility of extension for another three years), under which they will create startups with high risk and destructive actions and provide them with financial and significant added value.
The Innovation Authority will help reduce risk by awarding grants to startups. The winning groups will also be able to create a research infrastructure with a budget of up to 4 million masterpieces, with the Government funding 50 percent of the investment.
The aim of the new technology incubators is to stimulate investment in the early stages of technology projects by creating an infrastructure of support and assistance that will enable the transformation of innovative technology ideas in the early stages into advanced startups that can raise additional funding. In addition, they are designed to promote the development of technological entrepreneurship, commercialization and transfer of disruptive and innovative technologies from academia to industry in areas that are both complex and high risk; to strengthen Israel’s technologically innovative ecosystem in investing in seeds and assisting startups working in unique and complex technology fields; create and test their products, perform technological and economic tests, pilots and more.