Israel's government has launched a new fund to encourage institutional investors to boost investments in high-tech companies, the Israel Innovation Authority said on Sunday. The tech sector is a key driver of Israel's economy, accounting for close to 20% of output, 12% of jobs, more than 50% of exports and 25% of tax income.
"We are in a period where we need to plan a strategy for transitioning from war to growth, and smart investment in Israeli high-tech is one of the first steps we are advancing," he said, referring to Israel's six-month-old war with Palestinian Islamist group Hamas. The fund is being launched by both the innovation authority and finance ministry and will direct $160 million in public money to venture capital funds supporting Israeli tech companies.