Iron Sword Emergency and Impact Funding Sources

Following on the heels of a global economic downturn, the current security situation in Israel has added strain on tech companies seeking funding sources. While startups are demonstrating resilience and the ability to maintain business continuity, they still require a longer runway and are facing additional challenges in raising funds.

Start-Up Nation Central has initiated several efforts to strengthen the resilience of the Israeli innovation ecosystem. This includes providing access to funding opportunities, business introductions, and mentorship, as well as developing informational materials about Israeli tech’s ability to deliver – NO MATTER WHAT.

To this end, we are actively working to provide financial support and resources to help startups and companies thrive. Our commitment to funding is centered around supporting groundbreaking ideas and turning them into reality.​

Several initiatives, both in the public and private sectors, were launched to address this issue:

Safedome

Helps early-stage tech startups deal with current challenges by prolonging their run rate with emergency funding in the form of a SAFE note. There are several basic conditions to receive this investment:

• Raised at least $250,000 during the last 2 years
• Significant damage to the activity following the war that began in October 2023
• Current runway of no more than 6 months (without additional investment)
• Expenses that do not exceed $100,000 per month

Iron Nation

Providing a financial bridge for startups to stay afloat, the process for applying is as follows:

• Survey/Assessment – A preliminary appraisal by InNegev and Start-Up Nation Central to ensure an appropriate fit, a growth trajectory, and a promising team.
• Vetting – A professional assessment by leading VC experts to determine product market fit, funding potential, and expected revenues by the end of H1 2024.
• Investment – Quick influx of funding where appropriate, up to $600,000 per startup.
• Support & Mentorship – The pairing of professionals to accompany a startup to help reach its goals of funding and/or sales targets, along with procedures, resources, manpower, and assistance

Israel Innovation Authority

The Israel Innovation Authority has opened a NIS 400 million rapid grant fund for the benefit of Israeli startup companies with significant assets and a short runway. Funding is intended for companies facing difficulty in raising a round of capital from their existing investors during the fighting.

• The fund will operate within the scope of the R&D fund, intended for companies that need additional cash to survive the conflict period and extend their runway. Submissions will begin being accepted from November 2023 with a swift review process to enable quick admission into the program.
• The grant is intended for companies in the product development phase or beginning sales that have significant technological assets, including companies in an active recruitment round.

Arieli Capital

Arieli Capital has earmarked NIS 5 million to bolster early-stage Israeli startups (from seed to series A) that originate from or operate in the south of Israel and have been impacted by recent events. Beyond financial assistance, they provide mentorship and guidance to help startups navigate these challenging times.

The Ofir Foundation

Created by the MATA Association and the YKA Foundation in memory of the late Ofir Liebstein, this emergency funding program of up to NIS 20,000 supports technology entrepreneurs at the beginning of their careers operating in the communities surrounding Gaza and the Negev (including AgroTech).

The House for Social Solidarity

Representing the Shashua Family Foundation, the program offers financial support to individuals and business owners affected by the conflict in the areas surrounding Gaza and on the Northern border.

Criteria include:

• The business operates within a 40 km range from the Gaza Strip or Israel’s northern border.
• Public Israeli company registered before July 2023.
• Annual income of between NIS 64,000 to 3 million in 2022.
• The business and its owners have not declared insolvency.

The assistance includes the following measures:

• Support in covering short-term current obligations, such as payments for goods, inventory, raw materials, monthly software subscriptions, and employee wages, which have been affected by the conflict.
• Support in covering immediate and future short-term payments that may be affected by the conflict, including payments for goods, inventory, raw materials, and monthly software subscriptions.
• Support in financing delivery and transportation systems for goods.
• Support in strengthening and establishing an online business system and marketing on social networks.
• Support in safeguarding the business and maintaining its security.

ReGrow Israel Emergency Fund

This is the first fund focused on securing the future of farming communities devastated by the Hamas attack. ReGrow Israel is managed by Volcani International Partnerships, an Israeli non-profit supporting Israeli agriculture. ReGrow Israel Emergency Fund in collaboration and partnership with Eshkol Regional Council, Shaar HaNegev Regional Council, Association for the Advancement of Residents of the Eshkol Region, and Moshavi Hanegev Company provides support with infrastructure, equipment, and new production sites.

MagenTech – Israel

Supporting early-stage high-tech ventures through crisis, companies may apply if they meet the following criteria:

• A technology startup that has raised at least $700,000 from the government, incubators, private investors, seed funds, or competition prizes.
• A startup that ceased or significantly slowed down its operations due to the October 2023 war.
• Burn rate less than $300,000 per month.
• Last major funding round was not within the last 3 months.
• Early-stage startups (pre-seed, seed, series A)

If your company seeks financial backing, we encourage you to apply for funding sources through our platform.