Seed Fund – SEED Track

Israel Innovation Authority Seed Grant: Accelerating Development and Growth

Do you have a technological product in advanced development stages and are preparing to raise capital from investors? The Seed track (a sub-track under the R&D Fund) is designed to help early-stage startups make a technological leap, reduce investor risk, and ensure market entry with a well-developed product.

Support for Israeli startup companies in advanced stages of developing a technological product (Deep-Tech).

The Israel Innovation Authority distributes approximately ₪2 billion in grants each year primarily to companies and corporations for the development of new products, establishment of manufacturing processes, execution of pilot programs to advance innovative technologies and products, international collaborations, academic partnerships, and more.

The track helps companies bridge the financial “valley of death” through joint investment by the government alongside private investors, with the goal of reducing investor risk and accelerating development.

What Do You Get? (Key Funding Terms)

Co-Investment: The Israel Innovation Authority invests 50% of the requested funding round
Grant Ceiling: Up to ₪5 million
Incentives for Periphery / Underrepresented Populations:
Companies operating in Development Zone A or owned by entrepreneurs from underrepresented populations (women, ultra-Orthodox, Arab society) are eligible for an additional 10% (total of 60% funding, up to a ceiling of ₪1.65 million)
Additional Regional Incentives:
Companies located in Sderot or Gaza Envelope communities are eligible for an additional 20%, bringing the grant ceiling to ₪1.8 million
Application Without a Signed Investor:
It is possible to submit an application and receive preliminary approval, and only then complete the matching funding from the private market within several months

Who Is It For? (Eligibility Criteria)

The track is intended for Israeli R&D-intensive startups that meet the following criteria:

Company Stage: Companies that have completed the Pre-Seed stage and seek to build an advanced prototype, conduct pilots, or perform market validation
Previous Funding Cap: Companies that have raised up to ₪15 million to date
Revenue Cap: Annual revenues do not exceed ₪3 million
Use of Funds: At least two-thirds (66.6%) of the investment round must be allocated to R&D activities
Co-Investor Requirement: An agreement (or memorandum of understanding) with a private investor/fund for at least 15% of the investment round is required at submission (or completion of fundraising after approval)

What Does the Evaluation Committee Examine?

The Authority is looking for ventures with high-impact potential and significant innovation:

Technological Innovation: How unique, complex, and difficult to replicate is the solution?
Business Potential: What is the market size, and does the company have the ability to grow into a complete and sustainable company in Israel?
Team Capabilities: Professional experience, technological ability to execute the R&D, and business capability to raise capital
Need for Government Funding: Will the grant enable the company to reach its next financing milestone (Round A)?

Why Apply?

Non-Dilutive Funding: The grant is provided in exchange for future royalties from revenues, reducing founder dilution at critical stages
Quality Seal: Approval from the Israel Innovation Authority is considered a prestigious validation, facilitating follow-on fundraising from investors.
Risk Sharing: The state shares the risk alongside private investors, encouraging participation in technologically complex investment rounds

Why Work with Spark Consultants?

We are among Israel’s leading firms specializing in grant applications, providing a full professional solution from submission to ongoing reporting to ensure full grant utilization.

Spark Consultants specializes in securing grants from the Israel Innovation Authority, having raised over ₪800 million for our clients to date.

Spark is the owner of Fund Guru a unique and exclusive platform in Israel that performs intelligent mapping of grants for each company, both locally and internationally.

Are You Raising Capital or in the Middle of a Round?

Let’s explore how our mapping platform can identify the optimal funding tracks for you alongside the Seed track.