Angel investors are viewed as private individuals who look for financial opportunities, often in high-tech startups. And for the past two decades, the Israeli economy has seen spectacular growth, particularly as a result of its role in the fourth industrial revolution of telecoms.

So has the phrase “the Holy Land” taken on a new commercial meaning? Would it not be plain boring for entrepreneurs if all they had to do was to lift a rod or raise a hand? Even in Israel, an angels do not just appear, offering a million or two in cash.

Cute thought. However, Israel’s Ministry of Finance in Jerusalem in partnership with the Office of the Chief Scientist have come up with a more modern solution to financing new outfits, be they in biotech, new media or cleantech. Conveniently nicknamed “the Angel Law”, the aim is to encourage local investors to put their money early into companies at “seed stage”.

The tax break was recently outlined by David Krisman, KPMG Jerusalem, at a recent meeting of the Jerusalem Business Networking Forum. To put it simply, when an Israeli taxpayer invests up to around US$1.3 m per Israeli R&D company, they will be entitled to a deduction from taxable income, which can be spread out over 3 years.

The new regulations have only recently come into play. Investors, accountants and lawyers are already  crying “oi vay”, as the bureaucrats have wrapped the regulations in…well red tape and double talk. Simple, it ain’t for now.

That said, in an epoch when countries are looking for innovative ways to put money back into their economies, this is definitely a different and positive approach. A miracle it may not be, be it certainly kindles hope for enterprising new companies, creating employment opportunities and creating new wealth.