Israel Launches Fund to Entice Institutional Investment in Tech Firms

A man rides a bike next to a message in support of hostages kidnapped in the deadly October 7 attack on Israel by Hamas, in Tel Aviv, Israel, April 21, 2024. REUTERS/Hannah McKay
A man rides a bike next to a message in support of hostages kidnapped in the deadly October 7 attack on Israel by Hamas, in Tel Aviv, Israel, April 21, 2024. REUTERS/Hannah McKay
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Israel Launches Fund to Entice Institutional Investment in Tech Firms

A man rides a bike next to a message in support of hostages kidnapped in the deadly October 7 attack on Israel by Hamas, in Tel Aviv, Israel, April 21, 2024. REUTERS/Hannah McKay
A man rides a bike next to a message in support of hostages kidnapped in the deadly October 7 attack on Israel by Hamas, in Tel Aviv, Israel, April 21, 2024. REUTERS/Hannah McKay

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.
"The high-tech sector is a central and significant pillar of the Israeli economy, and we must ensure diversity in its sources of funding," Reuters quoted Finance Minister Bezalel Smotrich as saying.
"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 Hamas in the Gaza Strip.

Traditionally most investment has come from venture capital funds rather than institutional investors. The new Yozma 2.0 fund aims to change that, offering insurance companies, pension funds and other institutional investors a mechanism to enhance returns on their investments in tech-focused Israeli venture capital funds over the next 20 months.
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.
The Israel Innovation Authority said it would contribute 30 cents for every dollar of institutional investment as part of the program. It will also waive its relative share of returns from these investments, either fully or partially, with the aim of enhancing returns for the institutions involved.
Alon Stopel, chairman of the authority, said the move is designed to support early-stage Israeli tech companies, particularly those in deep technology sectors, and ensure a "robust funding environment" for Israeli startups in the coming years.



Iran Lawmakers Move to Sack Country’s Economy Minister as Rial Plunges 

A currency dealer counts Iranian rials as the value of the rial drops, in Tehran, Iran, February 9, 2025. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
A currency dealer counts Iranian rials as the value of the rial drops, in Tehran, Iran, February 9, 2025. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
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Iran Lawmakers Move to Sack Country’s Economy Minister as Rial Plunges 

A currency dealer counts Iranian rials as the value of the rial drops, in Tehran, Iran, February 9, 2025. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
A currency dealer counts Iranian rials as the value of the rial drops, in Tehran, Iran, February 9, 2025. Majid Asgaripour/WANA (West Asia News Agency) via Reuters

Iran’s parliament on Wednesday received a motion from lawmakers seeking to dismiss Economy Minister Abdolnaser Hemmati amid a sharp decline in the national currency, the rial.

Under Iranian law, Hemmati must appear before the legislature within 10 days to defend his record in a session that could result in his removal.

Ahmad Naderi, a Tehran MP and member of the parliament’s presiding board, said 91 lawmakers had signed the motion.

The move follows closed-door talks between President Masoud Pezeshkian and Hemmati with MPs over the plunging rial, which has lost nearly half its value since Pezeshkian took office in July.

On the black market, the rial is now trading at more than 900,000 to the US dollar, compared with less than 600,000 in mid-2024.

The slide has accelerated since the fall of Syrian president Bashar al-Assad, a longtime Iranian ally, on December 8.

Decades of US-led sanctions have battered Iran’s economy, with inflation worsening since Washington pulled out of a landmark 2015 nuclear deal in 2018.

US President Donald Trump, who returned to the White House in January, has revived his policy of “maximum pressure” on Iran, further tightening restrictions on the country.

Pezeshkian has vowed to seek a return to the nuclear accord and the lifting of sanctions, but diplomatic efforts have so far to make any headway.

In April 2023, lawmakers dismissed the industry minister Reza Fatemi Amin over soaring car prices.