Basic Information For Entrepreneurs

The Office of the Chief Scientist of the Trade and Industry Ministry has instituted a new program, which seeks to evaluate additional incentives regarding the National Incubator Program, increase the number of projects that succeed in raising capital, raise more capital and expand research and development activity in the periphery of Israel. The new program will be launched as a pilot program under the Chief Scientist's instruction No. 8.3, concurrently with the existing incubator programs.
NGT Technological Incubator is a limited company, privately owned by a group of Israeli business people. Acting under the auspices of the Pilot Periphery Incubator Franchise, NGT combines equity and investments to help support the entrepreneurs that join it with the following unique advantages:

•	Each project company is entitled to a research and development budget of up to $US 588,000, approved by the Chief Scientist, for a term of two years.
•	The R&D budget may be increased beyond the limit approved by the Chief Scientist through the contribution of NGT equity.
•	T he project companies are not required to pay any royalties or repay part of the grant to the State.
•	The distribution of the ownership in the project company between the entrepreneurs, NGT and the provider of the supplementary capital is flexible and subject to negotiation. The entrepreneur's holdings in the project company cannot be less than 30%, but may be as high as 70% (see appendix A for additional details on distribution of founder shares in the project companies).
•	The project can provide increased maximum wage limits up to a maximum of 25,000 NIS per month.

In addition to the advantages described above, the project companies at NGT Incubator enjoy the same basket of services provided to start-up companies operating in other technological incubators: management and marketing infrastructure, adequate office and laboratory space and extensive administration services.

NGT Incubator - A Unique Business Model

•	NGT Incubator is a private enterprise operating under a profit motive with the goal to encourage, nurture and bring to fruition the entrepreneurial visions of Israeli businessmen in the areas of advanced technologies.
•	NGT aims to realize its share in the project companies within two to six years of their establishment.
•	NGT may provide complementary capital from its own sources for projects that have been approved by NGT's Project Committee (see appendix B for the Project Committee's criteria for screening project companies).
•	NGT Incubator seeks to involve an additional strategic partner in each project company as early as the establishment stage, to provide an additional contribution beyond that of the complementary capital provided by the incubator itself.
•	NGT employs an integrated examination process to evaluate and select project companies for inclusion in the incubator. (See Appendix C, Project Evaluation Process).
•	NGT provides project companies with management and marketing assistance in an effort to maximize the company's value with an eye towards upcoming funding rounds.

As a private enterprise, NGT brings to the project companies a distinct advantage . These companies are totally free of government ownership and control. Future rounds of investment for these growing startups will not be hindered in their search for funds by the burden of government involvement.

For additional information, please contact:
Yosi TurKaspa, Chief Executive Officer
Nasri Said, Business Development Manager