Israel Innovation Authority Grants — Full Accompaniment

For a young company or an R&D company, an Innovation Authority grant can be the best source of funding there is. Unlike raising capital — you do not dilute your ownership. Unlike a loan — if the project fails, you do not repay the money. And if the project succeeds, you repay it only gradually, as royalties from revenues. It is one of the cheapest and most convenient funding sources in the Israeli economy.

So why do so many companies fail to use it? Because the process looks intimidating. The application is complex, the criteria are not always clear, and the fear of "bureaucratic paperwork" makes many entrepreneurs give up in advance — or submit an amateur application that gets rejected. This is where we come in: we turn the process from a barrier into an opportunity, and accompany you until the grant is received.

Why It Is Worth the Effort

• Non-dilutive funding — you keep full ownership of the company. No investor takes a percentage.
• Low risk — if the research fails, there is no repayment. You take on no debt.
• Significant amounts — hundreds of thousands of shekels in Tnufa, millions in the R&D Fund — funding that can accelerate development by years.
• A stamp of quality — Innovation Authority approval is a professional seal that improves your standing with investors and customers.
• Combination with other benefits — a grant can be combined with the Angels Law and the Capital Investment Encouragement Law for an optimal funding and tax mix.

Which Track Fits You?

The Innovation Authority operates dozens of tracks, each with different criteria, support rates and ceilings. Part of our accompaniment is identifying exactly what fits your stage and activity:

• Tnufa track — for a single entrepreneur or small team at the idea stage. A grant of up to NIS 200,000 (with a ceiling of up to NIS 250,000), a support rate of up to 80%, with no need for a registered company.
• The R&D Fund — the main track. 20%–50% of a company's R&D project budget, with an increment for peripheral regions.
• Technological incubators — for very young companies, 85% funding over two to three years, plus business accompaniment.
• International tracks — bi-national collaborations (US, Europe, Korea and more) with joint funding.
• Dedicated tracks — cyber, AI, biotech, agri-tech, energy, advanced manufacturing, digital health and more.

Why Companies Get Rejected — and How to Avoid It

The Innovation Authority's rejection rate is not low, and in most cases the reasons are not technological but poor preparation:

• An unprofessional budget — an application with an unsubstantiated, undetailed or unrealistic budget signals to the committee that the company is not mature.
• A weak innovation story — the reviewers are domain experts; an application that fails to present genuine innovation or technological differentiation falls through.
• A mismatch with the track — a company applying to the wrong track wastes months and misses out.
• Financial unpreparedness — a committee that identifies a company unable to meet the self-funding share or the reporting requirements hesitates to approve.

Professional accompaniment in advance — before submission — addresses all of these and dramatically improves the chances of approval.

How We Accompany You — Step by Step

1. Eligibility Review and Track Selection

We begin with an introductory meeting in which we review your activity, the company's stage and the project, and identify the most suitable track — and the realistic chances of approval. If you are not a fit, we will tell you honestly and will not waste your time.

2. Building the Budget and the Financial Part of the Application

This is the heart of what a CPA brings to the process. We build the project budget professionally, well-founded and compliant with the Authority's recognition rules — while maximizing the recognized expenses, so you receive the largest grant you are entitled to. A correct budget is not just a condition for approval; it is the basis for the entire grant amount.

3. Strategic Accompaniment and Work with the Technological Writer

We work together with the team writing the technological part, helping build a consistent, strong story for the committee. In parallel, we advise on strategic aspects — company structure, submission timing, and preparing for the self-funding share.

4. Project Management and Reporting After Approval

Receiving the approval is the beginning of the road, not its end. We continue accompanying — setting up an accounting and time-reporting system that meets the requirements, periodic reports, and preparing the audited financial report and the CPA opinion at the end of the project. So the grant is not just approved — it is received in full.

5. Tax Planning and Combining Benefits

A grant has tax implications, and it can sometimes be combined with additional benefits. We build the right mix, and accompany you through future events too — a funding round, a company sale or a restructuring — where having received an Innovation Authority grant carries real significance.

The above article is provided for general information only and does not constitute professional advice. Innovation Authority tracks, support rates and ceilings are updated from time to time — we would be glad to review the options relevant to your company together with you.

Sincerely,
Hager-Alperowitz & Co. — Certified Public Accountants