Small and Medium-Sized Corporations Financing Channels for Market Consultation

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Small and Medium-Sized Corporations Financing Channels for Market Consultation

7 March 2024

Dear Clients,


We would like to bring to your attention that in a document published on the Israel Securities Authority (“ISA“) website, the ISA expressed interest in exploring avenues to diversify and refine current fundraising channels governed by the Securities Law, 1968, with the aim to facilitate financing opportunities for SMEs while safeguarding public interests and removing any existing barriers.


The ISA is seeking input and suggestions from industry leaders on various aspects, including but not limited to:


  1. Understanding the extent of financing difficulties faced by SMEs, the efficacy of existing financing channels available under the Securities Law, and identifying any barriers delaying SMEs from utilizing these channels effectively.
  2. Considering the feasibility and necessity of establishing dedicated models tailored specifically for SMEs, similar to the Reg A+ model in the United States. Suggestions regarding the key elements of such a model that would suit the Israeli capital market are encouraged.
  3. Evaluating the need for amendments to the current exemptions from the obligation to publish a prospectus, particularly focusing on two main aspects: (i) exemption criteria for private placements (i.e. placements to a limited number of investors, or to sophisticated investors), and (ii) the fundraising and investment thresholds stipulated in the crowdfunding model under current legislation.


For the full publication (HE) >> click here



Public comments and suggestions will be received by April 18, 2024.


Our firm has vast expertise in the field of Securities and Corporate law, in addition to a dedicated Securities and Capital Markets regulation unit.

Should you wish to contribute to this discussion or require further clarification on how these potential reforms may affect your operations, please do not hesitate to reach out to us.


The Corporate and Securities Department 

Capital Markets and Securities Regulation Unit, Banking and Finance Department

Herzog, Fox & Neeman



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