Israel joined the European Union Horizons Program in 2021

Innovation Nation: Israeli Startups Secure $142M from EU Horizon Program

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The Judean Staff
Finance

In an impressive display of innovation and resilience, nine Israeli startups have secured a whopping $142 million (€130 million) in grants from the European Union’s prestigious Horizon accelerator program. This funding surge comes at a crucial time, as many fledgling companies grapple with the challenges of raising essential funds amidst ongoing conflict with the Hamas terror group.

The European Innovation Council (EIC) Accelerator has distributed a total of $449 million to 68 companies out of 969 applicants from 17 countries. Remarkably, Israel ranked third in terms of the number of successful grant recipients, trailing only behind Germany and France, each with 13 companies receiving funding.

“The high Israeli participation in the EIC Accelerator program highlights the competitive advantage of Israeli startups,” said Shlomi Kofman, International Deputy CEO of the Israel Innovation Authority. “This program provides crucial funding and mentoring, helping these startups accelerate their growth and realize their economic and social potential.”

Transformative Funding for Cutting-Edge Innovations

The EIC Accelerator program offers mixed funding, combining grants of up to $2.73 million with equity investments up to €15 million, along with mentoring and business development coaching. This comprehensive support aims to catapult startups into the global market, transforming them into formidable players on the world stage.

Among the standout Israeli recipients is MediWound Ltd., which will receive $17.75 million in blended funding. The company, renowned for its pineapple-based gel for treating burn victims, played a critical role in Israeli hospitals, aiding victims of the October 7 Hamas attacks. MediWound’s FDA-approved NexoBrid enables medical staff to perform enzymatic surgery to remove dead tissue, offering a less invasive alternative to traditional surgery.

Accelerating Medical Breakthroughs

With this EU grant, MediWound plans to expedite the clinical development of EscharEx, a wound therapy for diabetic foot ulcers pending approval by US and European regulators. The funding will enable the company to advance its innovative biologic product’s market introduction by four years, significantly boosting its future revenues.

“The EIC’s support recognizes EscharEx’s potential to profoundly impact patients, especially those living with the significant challenges of diabetic foot ulcers (DFUs),” said MediWound CEO Ofer Gonen. “This funding will allow us to develop EscharEx for DFU alongside our advanced program for venous leg ulcers (VLUs), substantially increasing our market potential.”

Pioneering Diagnostics and Biotechnology

Netanya-based JaxBio Technologies, a medical diagnostics startup, will receive a $2.73 million grant, with the potential for an additional €18.2 million in mixed financing. This funding will be pivotal in expanding JaxBio’s clinical programs and developing a revolutionary diagnostics platform for early lung cancer detection and management.

“In the current global climate, where investments in the biotechnology industry are scarce, especially in Israel, this grant significantly supports our ongoing journey towards product development,” said JaxBio founder and CEO Dr. Shahar Zirkin. “This grant, following a rigorous screening process, validates JaxBio’s technology and helps us advance our vision of developing a simple, sensitive blood test for early cancer diagnosis to save lives.”

Haifa-based Nurami Medical, specializing in soft tissue repair technology, has also secured mixed financing from the EIC Accelerator. The biotech startup will use the $2.73 million grant and additional equity investment to advance the development of its second product, currently in pre-clinical trials, following the US launch of its first product, ArtiFascia, a biodegradable nanofiber patch for neurosurgery.

A Diverse Array of Groundbreaking Innovations

Other notable Israeli startups benefiting from the EIC funding include:

  • LightSolver: Developer of a laser-based computer capable of performing complex tasks at unprecedented speeds.
  • Quantum Transistors Technology: Innovator of a single-chip quantum processor.
  • RAAAM Memory Technologies Ltd.: Developer of advanced on-chip memory technology.
  • Reophotonics: Creator of a digital dispensing system for electronics manufacturing.
  • SpacePharma R&D Israel Ltd: Developer of miniaturized lab technologies for space-based drug discovery and testing.
  • Impact Biotech Ltd: Innovator of an immune photo-activated cancer therapy for treating upper tract urothelial cancer.

A Testament to Israeli Innovation

The EIC Accelerator, part of the Horizon Europe program, supports small and medium-sized enterprises with breakthrough innovations, offering funding where private investors are hesitant due to high risks. Since the inception of Horizon Europe in 2021, 32 Israeli companies have received grants and investment support from the EIC Accelerator.

“This success places Israel among the top five participating countries in the program,” the Israel Innovation Authority stated, underscoring the country's robust innovation ecosystem and its unwavering commitment to advancing groundbreaking technologies.

The recent influx of $142 million (€130 million) in grants from the European Union’s Horizon accelerator program to nine Israeli startups is not just a testament to the nation's innovative prowess, but also a significant boon to the Israeli economy. Here’s how this substantial funding will impact the economic landscape:

1. Job Creation and Skill Development

With the substantial funding from the EIC Accelerator, these startups are poised to expand their operations, leading to the creation of numerous high-skilled jobs. As these companies grow, they will require a larger workforce, including researchers, engineers, marketers, and support staff. This job creation will contribute to reducing unemployment rates and enhancing the skill levels of the Israeli workforce.

2. Stimulating Research and Development

The funding will accelerate research and development (R&D) activities within these startups, fostering a culture of innovation. Increased R&D efforts not only lead to the creation of cutting-edge technologies and products but also attract additional investments and collaborations from global corporations and research institutions. This, in turn, solidifies Israel’s reputation as a global leader in innovation.

3. Enhancing Global Competitiveness

By supporting these startups in scaling their operations and entering global markets, the EU funding helps enhance the international competitiveness of Israeli companies. This increased global presence can lead to higher export revenues, boosting the overall economic output. Moreover, the success of these startups on the international stage can attract more foreign direct investment (FDI) into Israel, further stimulating economic growth.

4. Fostering a Vibrant Startup Ecosystem

The recognition and financial support from the EU serve as a significant endorsement of the Israeli startup ecosystem. This can encourage more budding entrepreneurs to launch their ventures, knowing that there are substantial funding opportunities available. A vibrant startup ecosystem attracts talent and fosters a collaborative environment where knowledge and resources are shared, leading to more successful ventures.

5. Driving Technological Advancements

The sectors represented by the funded startups—ranging from medical diagnostics and biotech to quantum computing and space technologies—are at the forefront of technological advancement. Breakthroughs in these fields can have far-reaching implications, driving advancements in healthcare, computing, and manufacturing. These technological innovations can lead to the creation of new industries and the transformation of existing ones, contributing to sustained economic growth.

6. Boosting Public-Private Partnerships

The involvement of the EU in funding Israeli startups encourages the development of public-private partnerships. These collaborations can lead to the implementation of large-scale projects that require both governmental support and private sector innovation. Such partnerships can result in the development of critical infrastructure, advanced research facilities, and comprehensive business development programs, further bolstering economic growth.

Conclusion

The €130 million from the EU’s Horizon program is more than just financial support; it is a catalyst for significant economic development in Israel. By fostering job creation, stimulating R&D, enhancing global competitiveness, and driving technological advancements, this funding will have a profound and lasting impact on the Israeli economy. As these startups grow and succeed, they will continue to contribute to Israel’s economic resilience and its standing as a global hub of innovation.

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