The European Union has increased its Horizon Fund from $200 million this year to $600 million next year. The fund, which operates in Israel via LeumiTech, a subsidiary of Bank Leumi. The money in the fund will be used to provide loans to Israeli high-tech businesses that employee less than 500 people. This represents the third increase in the fund, which originated with $100 million. LeumiTech was created to provide a complete banking solution to high-tech companies who have special financing needs that often do not meet the requirements or the understanding of standard banks.
LeumiTech CEO Yifat Oren stated: “We are proud to have been the first bank to recognize the potential of a partnership with the European Union. After three years of successfully working together, we believe the partnership with the EIF will help guarantee the future growth of the high tech industry in Israel. Thanks to the joint venture we will be able to provide capital to Israeli high tech companies and an attractive rate.”