Call for Proposals for the Establishment of New Technological Incubators

Summary

The Israel innovation authority is announcing a competitive call for proposals for selecting up to 4 concessionaries for the establishment and operation of up to 4 Technological incubators according to incentive program number 4 – Technological Incubators (new)
The principal purpose of the Technological Incubators is to encourage investments in the early stages of technological projects, through the creation of an assistance and support array, which will accelerate the conversion of early stage innovative technological ideas, up to startup companies ready for raising private capital investments

• Watch recording of the webinar which took place on 3 May 2021.
   
• Important Notices:
  • 30 August 2021 update:
    • The proposal form (annex 1) has been updated – the maximum page limit was updated to 50. The updated form is available for download on the Hebrew call for proposals page
  • 20 July 2021 updates:
    • The Israel Innovation Authority will select up to 4 Technological Incubators in this call for proposals, and not up to 3 as stated before.
    • The last date for submitting proposals is 11 November 2021, 14:00 ILT, and not 30 September 2021, 14:00 ILT as stated before
  • A response to clarification questions submitted in the process of the competitive proceedings was published on June 15, 2021. This document is an integral part of the competitive proceedings’ documentations. The document is published under the Attachments section at the bottom of this page.

Relevant Technologies

Technology sectors with high risk and challanges, including: Bio-Convergence, Foodtech, Agritech, ClimateTech, etc’

Program Description

What will the Technological Incubators do?

The Technological Incubators, selected in this competitive proceeding, will act to create new startup companies form different sources, like technology transfer from academy, supporting a private entrepreneur or young startup company with a groundbreaking idea and high potential 
The Technological Incubator can support a startup with a budget of up to NIS 6,500,000 divided to up to 3 periods:

• Preliminary period for technology transfer and first PoC
• Two main periods and up to a fundable milestone

A startup not emerging from technology transfer from academy can have only the two main periods with a total budget of up to NIS 5,000,000.
In addition, the technological Incubator will support the startups with extensive added value – smart-money, including technological and business support, strategic partnership and networking, potential customers, additional investors, advisors, opinion leaders, legal, accounting and administrative support, and more.

Who can apply for a concession?

Companies / Venture Capitals

What can you get?

Technological Incubators concessionaries will receive a 5-year franchise with an option for additional 3 years extension, during which they can leverage their investments in groundbreaking early-stage technological start-up companies, with grants from the Authority – up to 85% of the approved budget.
Additionally, the franchisees can get a grant up to NIS 2,000,000 for the concession period – for the purchase of lab equipment for the startups to use freely.

Criteria

Threshold Conditions

1. The proposer is a corporation lawfully incorporated and registered in Israel and operates pursuant to the laws of the State of Israel for purposes of profit
2. The proposer has financial resources and commitments vis-a-vis the Innovation Authority concerning the availability of financial resources in the scope of at least NIS 50 million for the benefit of the incubator and the Incubator Companies, for the length of the concession period
3. The proposer has a professional team designated for incubator management that includes a full-time CEO and at least one deputy CEO for business development or technology in a full-time position
4. The total scope of direct or indirect holdings, by shareholders, in the proposer, of non-profit entities will not exceed 33% (fully diluted). They will not be controlling shareholders of the proposer, either together or separately
5. A shareholder of the proposer, the proposer itself or a related company of the proposer or of the proposer’s shareholder, will be a controlling shareholder in not more than two incubators operating by force of:
   • This Incentive Program
   • Incentive Program No. 3 Technological Incubators
   • Incentive Program No.22 Biotechnological Incubators
   • Incentive Program No. 29 Technological Innovation Labs
   • Incentive Program No. 39 Entrepreneurship Incubators in the Periphery
6. The proposer or one of its shareholders is not an owner of restricted accounts and is not in the process of receivership, freezing of proceedings, liquidation, etc
7. The proposer and its controlling shareholder comply with the Industrial Research and Development Regulations (Conditioning of Approvals – Minimum Wage), 2011
8. No financial support was received from a governmental entity or the Innovation Authority to execute the proposed activities, directly or indirectly, that was not according to this Incentive Program’s provisions

Criteria:

1. Scope and quality of the experience of the proposer and/or of its shareholders
2. The added value of the proposer and its shareholders
3. Scope and quality of the experience of the proposer’s management team
4. The proposer’s business plan
5. Funding sources of the proposer
6. General impression of Committee members

Application Process

1. Read the incentive program and procedures carefully, make sure compliance to all threshold conditions according to clause 4.3 in the incentive program, follow the instructions in the incentive program, procedures and this call for proposals.
2. Submit all forms and documents to this email address only: [email protected]
3. If documents and forms are too large, it is allowed to send a link for download.
4. The proposal must include all necessary forms and documents according to the benefit track and procedures, including:
   • Proposal form (annex 1) in .DOCX format
   • Proposal form (annex 1) in PDF format, with electronic signatures (not scanned), alternatively, a clear, readable, signed scan.
   • A proposer who believes that parts of its proposal include commercial secrets and/or business secrets should attach an additional copy to its proposal with the confidential parts blackened out in a clear and unequivocal manner. For the record, no parts of the proposal should be left out, but parts that are confidential – in the proposer’s opinion – should be blackened out. The proposer must also include a list of all blackened parts and justify his position
   • Annexes 2-4 according to clause 3.1 in the incentive program
   • A copy of the proposer’s incorporation certificate
   • CV of the proposer’s staff and their employment agreement with the proposer
5. The proposer must verify his proposal was received via the above email
6. Proposers that comply to the threshold conditions will be invited to present their proposal to the committee

• Proposers must follow this call for proposals webpage for updates and notices concerning this call for proposals
•  It is made clear, in case of any conflict or inconsistency between this call for proposals notice and the incentive program and its procedures, the latter will prevail. 
• This call for proposals notice shall not oblige the Authority to choose any proposer or to make any engagement with any proposer 
• This call for proposal notice is a non-binding translation of the Hebrew notice. In any case of conflict or inconsistency, only the Hebrew version will prevail. 

Timetable

1. 18 May 2021, 14:00 ILT – last date for submitting questions for clarifications. Submissions to this email address only: [email protected]
2. 15 June 2021, 14:00 ILT – publish answers to questions for clarifications
   * please note, the answers will be an integral part of the competitive proceeding
3. 11 November 2021, 14:00 ILT – last date for submitting proposals

Late proposals will not be accepted

Attachments