BIRD Foundation
US-Israel binational foundation providing conditional grants to joint American-Israeli industrial R&D ventures. Established 1977. Self-sustaining fund that has co-funded 1,000+ projects across defense, medtech, agritech, and software.
The BIRD Foundation (Binational Industrial Research and Development Foundation) is a US-Israel government-funded body that provides conditional grants to joint ventures between American and Israeli companies developing commercially viable products. Established by the United States and Israel in 1977, BIRD has co-funded more than 1,000 projects and catalyzed billions of dollars in direct and indirect revenue for participating companies.
Structure
BIRD was created by an intergovernmental agreement and capitalized with $110 million contributed equally by the U.S. and Israeli governments. It operates as an evergreen fund — grants are repaid through royalties if the funded product reaches commercial success, and recovered funds are recycled into new projects. This self-sustaining model has allowed BIRD to fund projects for nearly five decades without requiring additional government appropriations.
How It Works
BIRD provides conditional grants of up to $1.5 million per project to joint ventures pairing one U.S. company and one Israeli company. Projects must demonstrate genuine bilateral collaboration — shared development risk, complementary capabilities, and a path to commercial revenue. BIRD's board includes representatives from both governments. If the product succeeds commercially, the companies repay the grant through a royalty on sales (typically 2.5–5%). If the project fails, no repayment is required.
Subsidiary Programs
BIRD operates several specialized programs alongside its flagship industrial fund: BIRD Energy (clean energy and water), BIRD Cyber (cybersecurity), and BIRD Homeland Security. These vertical funds follow the same bilateral grant model but target specific sectors identified as strategic priorities by both governments.
Strategic Significance
BIRD is the institutional backbone of US-Israel commercial technology cooperation. It predates and structurally differs from venture capital — it funds joint development rather than equity stakes, and it de-risks collaboration between companies of asymmetric size (large U.S. corporations and small Israeli startups). BIRD-funded projects have produced products in defense, medical devices, agriculture, software, and cleantech, and the foundation is frequently cited as a model for other binational innovation programs globally.