The new amendment of the R&D law is finally approvedApr. 23, 2012
Dear IATI members,
As you may have seen in the press over the last couple of days, we are very pleased to inform you that the Office Of the Chief Scientist (OCS) office has finally released the amendment to the R&D law which determines the cap on the amount to be returned to the OCS in the case of M&A.
The new amendment calls for a cap on the amounts to be paid to the OCS in the case of M&A – 3X in the event that the company’s activity remains in Israel and 6X in the event that there is no continuation to the Israeli operation.
The amendment removed a major stumbling block that for many years (i) prevented or negatively affected venture capital firms’ decisions to invest in start-up companies that received OCS funding; and (ii) in numerous cases prevented international companies from buying Israeli companies that received support from the OCS.
Unfortunately, it took us more than 8 years to reach this point and this simple amendment. It took a significant amount of work of previous Chairpersons as well as Ruti Alon and Aaron Mankovski.
Special thanks to Mr. Robert Ilatov, Member of the Knesset and to Ms. Esti Peshin, General Manager of the High Tech Lobby in the Knesset, that worked hard to turn the amendment into the new law.
We are very pleased with the final result and hope that it will help young companies to get greater funding from investors around the world, and will no longer be an issue in M&A transactions.
Happy Independence Day to all of you!
Ruti Alon, Chairwoman Aaron Mankovski, Chairman
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