The Innovation Authority announced yesterday the winners of the greenhouse tender in five main areas: space, food technology, health, deep technologies. The goal of the greenhouses is to grow within five years 150 innovative start-ups in high-risk areas, which will develop the innovation ecosystem in Israel – with a total budget of about NIS 500 million.
One of the main axes in the program, as mentioned, is in the field of space. Space & Earth – Chosen to operate an incubator in the fields of space and Deeptech with an emphasis on space and Earth applications. The new incubator consists of an association characterized by synergy between leading leading companies and investment funds such as: Kyocera, Croning Blue Sky Capital (Samtec), Oceancap, Rhodium, Moon 2 March Ventures, Space-Communications. The incubator will promote the establishment of new companies with technologies with dual applications and will work to make knowledge and expertise accessible as well as ongoing investments for the incubator companies and to establish Israel as a global leader in the field.
Diverse areas at high risk
The technology incubators provide the assistance and support to ventures in their early stages, established and operated by venture capitalists and local and international companies, who are capable, and in their experience of providing substantial added value, and supporting start-ups and start-up entrepreneurs.
In a competitive process in which 13 bidders competed, the Innovation Authority selected 5 groups that will operate new technology incubators within about a year. The winning teams are made up of global global corporations, such as: Pharma Company, Bristol Myers Squibb Becton Dickinson, Kyocera, Corning, CBG Group, Eren Industries, and more.
The proposals received focused on diverse areas at high risk. Apart from space, you can also find climate, health-tech, podtech and Deeptech. As mentioned, the selected greenhouses are expected to establish about 150 innovative technology companies in the next five years. In order to meet their obligations, the greenhouse franchisees will provide sources of financing and investment obligations in the greenhouses in excess of NIS 150 million.
The Minister of Science, Innovation and Technology, Orit Farkash HaCohen, said that “this morning, the Innovation Authority selects 5 excellent groups that will bring real good news in various strategic technological fields that constitute the future of Israeli high-tech. This is an important action in strengthening the establishment of start-up companies and long-term startups that will be a catalyst for innovation in areas where the risk is high and innovation is groundbreaking. The importance of decentralizing the investments of the State of Israel in broad areas of technology will lead to the expansion of the solid base of high-tech in the long term and will enable the Israeli economy to grow and develop in other important directions. Glad that the fields chosen are many and different from each other, from the field of climate to the field of space and other important fields. All of these will grow many new companies for the benefit of the economy. “
Dr. Ami Applebaum, Chairman of the Innovation Authority, added that “the proposals presented by the various companies’ groups were excellent and diverse. The areas in which the greenhouses will operate are part of the Authority’s strategy for Israeli high-tech diversity, which is very important for increasing the number of new companies established and creating growth engines. “Knowledge that will be traded from academia, and which will be able to develop and grow with the help of the incubator and create a supportive ecosystem in these areas.”
The winning groups will enjoy a 5-year franchise period (with the possibility of an extension for another 3 years) in which they will establish high-risk breakthrough start-ups, and will support and invest significant money and added value in them. The Innovation Authority will participate in reducing risk through support grants in start-up companies. The winning groups will also be able to establish an R&D infrastructure that will meet the free use of the greenhouse companies and other companies in the ecosystem, with a budget of up to NIS 4 million, with 50% participation from the Innovation Authority.