A new co-investment fund is helping to promote large investment in venture-backed companies working in the field of alternative fuels for transportation.
The government has designated an overall budget of over $100 million for this program until 2020.
Companies benefit from the program by receiving additional funding from the government, in the form of a conditional loan, on top of investment raised privately. The benefit from utilizing the program is the investor’s option to receive additional shares in the company for the same terms of the original round of investment in return of the government loan. If the investor does not exercise this option, it must repay the loan only in case of the invested company’s financial success, through royalties from sales.
The scope of the investment covered in the program is a minimum of 1.5 NIS (~400 thousand USD) of private investment in company and maximum of 60 million NIS (~16 million USD) of private investments in company during the lifetime of the program (by 2020).