The end of "Death Valley"? The solution that will save start-up companies in the field of foodtech - voila! Real estate

For the first time in Israel:

an industrial production center for the foodtech industry will be established in Kiryat Shmona with an investment of 90 million shekels, of which 27 million shekels will be supported by the Ministry of Economy and Industry.

Recently, the Ministry of Economy and Industry, through the Investment Authority and the Strategy Division, led a solution to a significant challenge in the field of startups - the "valley of death", the intermediate stage between a startup and establishing a factory.

In this framework, a new route was published to assist in the establishment of a center that will serve as an infrastructure for the production of innovative products in the field of food-tech.

In this way, a response will be given to every start-up in the field that is in the micro-industry stage and is required to produce initial and experimental products, before moving to the establishment of a factory.

A solution to a significant challenge in the field of startups - "Valley of Death", the intermediate stage between a startup and establishing a factory. (Photo: ShutterStock)

The plan, which was approved today (Monday) by the Investment Authority Committee, includes investments of NIS 90 million in the establishment of a building, infrastructure and equipment for industrial production in the food-tech field.

This program is a collaboration between the Sun Hi-Tech Company and the Margalit Start-Up City Fund.

The amount of the grant approved for this program from the Investment Authority budget in the Ministry of Economy and Industry is NIS 27 million.

In the first phase, the activity of the partnership will be carried out in a rented building in the city of Kiryat Shmona, in order to provide an immediate response to the companies active in the field in the region.

At the same time, an industrial building will be built with an area of ​​approximately 3,000 square meters, which will be able to provide a flexible response to the diverse production needs of the companies.

The winning partners recognized that in the last two years there has been an increase in the demand of the companies in the food-tech industry for an initial scale-up.

Answering this need will allow the food-tech companies to reach as quickly as possible the production of samples and even initial commercial production, and this is when today companies at this stage, of the initial production, are forced to leave the northern region to other regions of the country and even abroad, and thus the northern region, and the entire State of Israel, Losing many companies.

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