$20 million of government subsidies went to the Yozma Fund, the other $80 million the government provided went to match other foreign and domestic firms, at 40%, to create their own venture capital funds in Israel.
The VC companies could buy-back the governments equity stake over a 5 year period, and most did.
[2] Inbal is a government owned insurance company that underwrote and guaranteed up to 70% of losses for venture capital firms from 1992-1998.
The Israeli Government helped start and fund business incubators and an R&D cluster during the 1990s.
Many immigrants came to Israel during the fall of the soviet union in the 1990s post-Soviet aliyah and about ⅓ of them were skilled enigineers and scientists.