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The Israel Innovation Authority has made a bold move to supercharge its Deep Tech ecosystem by launching two new incubators: Square One Labs Build and Edge Medical Ventures. With a total government commitment of NIS 80 million over five years and expected private investments exceeding NIS 120 million, this initiative aims to nurture dozens of groundbreaking startups in the realms of energy, infrastructure, and medical technology.
The program marks a strategic evolution in Israel’s incubator approach, blending state funding with high-powered industry partnerships under a new “Venture Creation & Building Studio” model. This setup is designed to lower risk for entrepreneurs while maximizing their access to critical resources, expertise, and funding.
Powering the Next Wave of Deep Tech Startups
Israel has long been hailed as the “Startup Nation,” but now it’s doubling down on Deep Tech—a sector where cutting-edge science and engineering meet real-world problems. The Innovation Authority’s newly launched initiative represents a pivot toward sectors that demand high technological rigor and long-term commitment: clean energy, critical infrastructure, and healthcare.
Each incubator will receive up to NIS 40 million (~$11 million) in government backing:
– Square One Labs Build will target energy, industrial technologies, and data center infrastructure.
– Edge Medical Ventures will specialize in Bio-convergence and medical devices, merging software, hardware, and biotech.
In total, the program expects to catalyze the creation of dozens of early-stage startups over the next five years, offering them access to R&D labs, clinical validation resources, commercialization support, and mentorship from experienced founders and corporate leaders.
Square One Labs Build: Tech-Driven Infrastructure
Led by SolarEdge co-founders and backed by industrial giants like Doral Energy-Tech Ventures, Bazan Group, and Afcon, Square One Labs Build is using an “Entrepreneur-in-Residence” model. The incubator will provide hands-on support to founders, helping them co-create startups that tackle real industrial challenges.
Its specialized labs will focus on robotics, thermal systems, and next-gen data infrastructure, with a clear aim to build scalable technologies that serve critical industries.
Edge Medical Ventures: Where Biology Meets Engineering
Edge Medical Ventures focuses on Bio-convergence—where medical devices, biological research, and digital technology intersect. Supported by world-class institutions like Boston Scientific, Sheba Medical Center, and Cornell University Medical Center, this incubator will give startups everything from regulatory guidance to in-vivo testing environments.
The leadership team features deep experience in MedTech commercialization and includes Shay Poliker (CEO), Gal Atarot (CTO), and Eileen Kee (VP of Commercialization).
What Undercode Say:
A Strategic Playbook for Deep Tech Domination
Israel’s new Deep Tech incubators are more than just government-funded projects—they are experimental launchpads built to test the boundaries of what’s possible in science-led entrepreneurship. Here’s what makes this initiative particularly powerful:
- Blended Funding Model: The state provides seed money, but private investors bring the scale. This aligns incentives and ensures startups stay close to market demands.
- Venture Studio Methodology: Unlike traditional accelerators, these incubators don’t just fund ideas—they help build them from scratch alongside seasoned entrepreneurs and industry veterans.
- Sector Focus = Strategic Advantage: Energy, infrastructure, and health aren’t just buzzwords. These are sectors where Israel can export both innovation and influence—especially in the post-COVID, climate-conscious global economy.
- Human Capital Advantage: With alumni from SolarEdge, Sheba, and Cornell on board, the incubators bring rare domain expertise—something money alone can’t buy.
- No Equity, No Dilution: The non-dilutive model is a founder-friendly revolution. Startups can go from ideation to Series A without giving up ownership, which encourages more risk-taking and long-term thinking.
- Global Benchmarking: The program mirrors best practices from U.S. venture studios but localizes them for the Israeli tech landscape—leveraging the country’s tight-knit innovation networks and public-sector agility.
The “Entrepreneur-in-Residence” concept is especially intriguing. It essentially invites top-tier talent to build startups around real-world problems, backed by lab access, corporate partnerships, and a cushion of state funding. It’s a practical, high-efficiency model for innovation—one that could change the way early-stage Deep Tech is built worldwide.
This move also comes at a time when global funding in Deep Tech is tightening. By creating a localized support system for capital-intensive, high-risk ventures, Israel is cementing itself as a Deep Tech oasis amid a more risk-averse global funding climate.
In short: this is not just another incubator launch. It’s a national innovation strategy wrapped in startup clothing.
Fact Checker Results:
- Both incubators were indeed chosen through a competitive process in 2024.
- The NIS 40 million figure per incubator is confirmed by official Innovation Authority statements.
- No equity is taken from the startups—confirmed through public documentation of
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