Source: https://rivet.global/blog/israel-startups-dollar-revenue-shekel-payroll
Published: 2026-10-11 · Updated: 2026-10-11 · By Rashidatou K.

# Israeli startups with dollar revenue and shekel payroll: managing currency risk

Israeli tech companies earn in dollars and pay salaries in shekels. A strong shekel squeezes runway. How to measure exposure, hold dollars and plan conversions.

## Key takeaways

- Israeli startups typically raise and earn in dollars and pay most costs in shekels.
- A stronger shekel reduces how much payroll each dollar covers, shortening runway.
- Paying dollar costs from dollar balances and converting shekels in planned amounts reduces exposure.
- Many startups convert a few months of payroll ahead to fix part of their runway.

A Herzliya startup raised $12 million and has 40 engineers in Israel. At the rate on the day it closed the round, its runway was 20 months. Over the next six months the shekel strengthened by about 6 percent. Same team, same plan; runway fell by more than a month.

## Why it happens

Israeli startups usually raise in dollars from US and international investors and sell to customers in dollars. Their largest costs, salaries, rent, Israeli taxes and social security, are in shekels. The shekel floats, and it has moved substantially in both directions in recent years.

## Measure it

Runway in months equals dollar cash divided by monthly burn in dollars. Burn in dollars equals shekel costs divided by the exchange rate plus dollar costs. Run the calculation at today's rate and at a rate 5 and 10 percent stronger for the shekel. The difference is your exposure in months.

## Reduce it

1. Match dollar costs. Cloud, software, US staff and travel paid from the dollar balance carry no shekel risk.
2. Convert in planned amounts. Many startups convert three to six months of shekel payroll at a time, fixing part of the runway, and hold the rest in dollars.
3. Use forwards later. Larger companies with bank credit lines can fix rates for longer with forwards.

## Be deliberate

There is no right rate to convert at. The point is that conversions become decisions on a schedule, and the board sees the effect of currency moves on runway explicitly.

## Where Rivet fits

A Rivet business account accepts registered companies after verification, including Israeli companies and US entities of Israeli startups. Approved companies get US account details in their own name on every plan, euro and sterling details from the Growth plan, and on Scale balances in 30 currencies. Dollars can be held, spent with Visa company cards or converted at a rate shown before you confirm. Rivet is not a bank; regulated partner institutions hold the funds.

## Questions

### Why does the shekel matter so much for startups?

Because funding and revenue are in dollars, while salaries, rent and Israeli taxes are in shekels. Exchange rate moves change runway directly.

### Should startups convert all funding into shekels?

Rarely. Converting everything at once fixes one rate but removes flexibility. Many convert a set number of months of payroll ahead and hold the rest in dollars.

### Can Israeli companies hold dollars?

Yes. Israel has no currency controls on companies, and dollar accounts are common.

### Do forwards make sense for startups?

For larger, predictable shekel needs, forwards from a bank can fix the rate for months ahead. They require a credit line and fit later-stage companies best.