This document provides information about a new media fund established to support the digital media industries in Haifa, Israel. The fund will support new media projects, television productions, and feature films that are developed and produced in Haifa. It outlines the eligibility criteria, types of expenses that can be covered, support rates of up to 75% of project costs for new media and up to 33% for television and film productions. The document also lists 12 sample projects that have already received support through this fund across the categories of new media, TV series, and feature films.

2. Pardon, am I a small business?
Micro:
5 employees
1 million NIS
Small
20
employees
10 million
NIS
Medium:
100
employees
100 million
NIS

3. are Small &
Medium Businessess

4. Businesses Difficulties, By Number of Employees
Barriers to business success
One
empl.
2-4
empl.
5-19
empl.
20-49
empl.
50-100
empl.
Competition8%20%21%29%15%
Bureaucratic load10%9%18%16%5%
Credit and financing11%11%13%12%20%
Recession and general
atmosphere
14%6%7%14%5%
Professional recruitment10%7%7%8%20%
Marketing14%14%2%2%0%
Demand11%6%7%4%10%
Low incomes vs. fixed
expenditures
6%8%7%2%15%
Customers & suppliers credit7%6%7%8%0%
Knowledge, management &
infrastructures
3%3%6%4%5%
Physical / Personal status4%3%2%0%0%
Motivation0%5%1%0%5%
Status survey data, the Agency for Small and Medium Enterprises, 2013

5. CONSULTING – TOOLS DEVELOPMENT
Identifying
needs
Target
Audience
Compliance
Control &
Assessment

6. Counseling Plan
Consulting in variety of subjects
Diagnosis and adjustment of
consulting package
over 700 consultants all over
the country
Regular route: 30-80 hours;
Strategic route: 150-300 hours.

7. micro businesses consulting
Courses, Workshops, Trainings
Guidance up to funding
Businesses Center
Entrepreneurship
“IDF’s move to the Negev” project

8. Detection of financing
Market Failure in small
and medium
businesses
Support
programs for the
promotion and
improvement of
credit accessibility
Control &
Assessment
Finance Department

9. State Guaranty Fund
4.25 billion NIS
70% State Guaranty Fund to existing businesses,
85% State Guaranty Fund to new businesses
Participating banks: Hapoalim, Mizrahi-Tfahot,
Mercantile Discount, Otsar Hayal
Competition between the banks and the operators

10. SME Export Marketing Fund
Target
Audience
Small exporter: up to 7 million NIS in volume of exports
Medium exporter: between 7-40 million NIS in volume of
exports
Fund GoalsParticipating in marketing expenditure including:
advertising, conventions & exhibitions, patent registration,
etc.
Participation
Rate
Up to 50% of the marketing expenditure and up to 2 million
NIS
RoyaltiesSmall exporter: none; Medium exporter: 3% the exports
growth
One year with another as One year with an option for
another year and subject to compliance with conditions
Approximately 70 firms receive support under this route with a budget of
about 25 million NIS

11. Industrial Design
• Atir Israel Industrial Design Award - Encouraging
excellence among industrial designers and
promoting the use of industrial performance
• Development program for enriched-designed
products - a new program to encourage the use of
industrial design in the industry. The fund will
provide up to 200 NIS of the total expenditure for
use of industrial design
- Around 12 firms receive support under this fund (total of 2 million NIS)
• Participating in conventions…

12. • New Media – wide and versatile industry with numerous
sectors. Almost all sectors demonstrate significant growth rate
in recent years and their high project potential is even more
impressive.
• New Media – can constitute a source for employment, positive
external influences and mainly significant growth engine for
different worldwide countries, with an emphasis on those
countries, like Israel, whose comparative advantage is not in
manufacturing.
• Many countries have begun in recent years to operate
programs for promoting and developing this domain, either as
part of broader programs promoting technology and innovation,
and either in the field of new media and digital, in particular.
New Media

13. Reasons for Operating the Program in Israel
• Creativity
• Innovation
• Developed infrastructures
• Proven ability in establishing and leveraging startups
• Relatively low investment in the development phase

14. Government Intervention?
• Is it right to give a sectorial preference?
• Is it right to make a geographical preference?
• Is there indeed a "market failure"?
• Not to harm competition in the private sector
• We do not take ownership in firms
• Inability to predict what will succeed and what not

15. • The presence of academic institutions such as The
Technion (one the world's leading technological institutions)
and the University of Haifa - both have a strong affinity to
media.
• The presence of global development centers of hi-tech
multi-national firms, such as Intel, IBM, Yahoo and
Microsoft, which could constitute an anchor and a basis for
becoming partners in activities related to the media realm.
• An internationally accredited film festival held for many
years in Haifa, where industrial-related events held in
relation to the festival.
Why Haifa?

16. • New Media
 Digital distribution of content including text, image, sound or their
combination or their partial combination, to the target audience. The
distribution is performed by relevant technological means.
• The Project Period
 The period approved by the Commission of Application Execution?,
but not more than 12 months from the date that the Commission set.
• Project
 Funding application for activities within the plan, which will specify the
essence of the project, target market, milestones and required
expenditures to operate the project.
New Media Fund

17. • Prerequisite – Size of Business
 The business entity employs up to 100 employees.
 The business entity annual turnover in the year preceding the application
does not exceed 100 million NIS.
• Television
 At least 15% of the filming days will take place in Haifa and at least 15% of
the budget sum - for services in Haifa.
• Cinema
 The project is in engaged in promoting feature film.
 External production investors at the extent of at least 50% of the
production budget.
 At least 15% of the filming days will take in Haifa and at least 20% of the
used budget sum – for services from Haifa.
• New Media
The development process will take place in Haifa.
New Media Fund

18. Criteria to Examine the Application
• Project Quality
 The Commission is convinced that the project submitted by the
business entity is innovative.
• Economic ability and business potential
 A business entity with the highest economic and business potential.
• International Markets
 A project designated to address relevant international markets.
• Expected Employment Increase
 The highest expected employment increase rate.
New Media Fund

19. • New Media
 Hiring an industrial or a graphic designer, cost of programmer, cost of
professional consultant and an external expert (provided that he is not a partner
to the project).
 Standardization and patents expenditure, domestic and overseas (will not
exceed 10% of the approved project).
• Feature film and TV series
 Actors and extras; technical crew (audio recording professional, photographer,
makeup artist etc.).
 Photography equipment rental, lighting and grip; sound equipment rental;
production and insurance; art; cost of raw materials; transaport services; etc.
 Domestic and overseas marketing and sales promotions – up to 10% of the
volume of the project.
• Support Rates
 New Media – up to 75% of the project and up to a total of 250,000 NIS per
project.
 Cinema and TV production – up to one third of the project and up to a total of
600,000 NIS per project.
New Media Fund

20. Projects Supported under the Support
of Digital Media Industries (Haifa Pilot)
Name of ProjectFirms
Chet UpTiltan College of Design
BuckKfir Gal – Web Interactive Games
Wounded CountryCome Back Films
Philip and GombyTiltan College of Design
Over the HillTranpax Film Production
3 sistersBilsan Film Production
Space barKastina Communications
At Li LaylaTuttim Productions
On our FutureEithan Mantzuri
PaxDassa James
Monkey See Monkey DoSmartones
Total: 4 New Media projects, 2 TV series, 5 feature films