On December 29, 2015 the Israeli Knesset approved (voted for second and third hearings) the Law for Encouragement of Investments in Hi Tech Companies – 2015, mainly allowing public offerings via crowd funding online, without the need to file a prospectus.
- The law allows an offer of securities of a corporation incorporated in Israel, without the need to become a “Reporting Corporation” (i.e., a corporation the files a prospectus and is obligated to file reports to the Israeli Securities Authority and the Stock Exchange), subject to the following conditions:
- The offer is carried out by “A Proposal Coordinator”- a company registered under the “Proposal Coordinators Registry” that promotes the offer for sale of securities by a website.
- The offer shall no exceed an amount determined by the Minister of Finance (the amount has not yet been determined).
- The respective investment amount of each investor may not exceed the amount determined by the Minister of Finance (to be determined also).
- Furthermore, each investor may not exceed an aggregate investment amount for additional involvements.
- The Securities Authority shall maintain a “Proposal Coordinators” registry.
- Each Proposal Coordinator must submit an annual report and on going reports regarding the proposals made via its web site.
- The Finance Minister may require additional report obligations.