Medtronic (NYSE:MDT) and International Business Machine (NYSE:IBM) won a grant from the Israeli government to open an incubator focusing on the field of digital medicine, according to a statement from the Israeli Ministry of Economy.
The incubators will receive a budget between $500,000 and $800,000, depending on the project, according to the incubator’s site. The group currently has 20 technological incubators running, but only 1 that focuses on biotech.
Joining Medtronic and IBM in the Haifa, Israel-based incubator are venture capital firm Pitango and Rambam Hospital, according to a translated version of the release.
Incubators receive 85% of their funding from the government, and the rest of the funding comes from companies. Incubators will pay the government 3-5% in royalties from income generated from the business until the full amount, plus interest, is returned, according to the incubator’s site.
The goal of the incubator is to produce Israeli startups that can compete in the global marketplace with ideas that “are too risky for private investments,” according to the program’s site.