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Over the past few weeks, we've seen the U.S. dollar weakening — a trend that may continue or reverse, but one thing is clear: exchange rate volatility is back, and it’s here to stay for a while.
For many companies — especially Israeli startups — this kind of fluctuation creates real uncertainty. You may be raising capital in dollars, generating revenue in dollars, but paying salaries, rent, and service providers in shekels. That mismatch in currencies means sharp moves in the exchange rate can have a significant impact on your budget, runway, and even the timing of your next fundraising round.
Start with a Review.
Before you build a policy, take a moment to understand your current exposure:
What portion of your expenses is in local currency (ILS) vs. foreign currencies (USD, EUR, etc.)?
Do you hold large dollar balances while most expenses are in shekels?
How does today’s exchange rate impact your runway compared to your original plan?
Running these checks regularly ensures you don't run into surprises — like running out of shekels just when the exchange rate is most unfavorable.
1. Plan, Don’t Guess - Your goal isn’t to "beat" the market. It’s to ensure operational continuity. Avoid speculation and focus on building stability into your cash flow.
2. Define Reserve Periods - Set a minimum and maximum time horizon for how much local-currency cash you want on hand. For example, maintain 3 to 6 months’ worth of expenses in ILS.
3. Set Conversion Cadence in Advance - Decide ahead of time when and how often you’ll convert currencies. This removes emotional decision-making and helps avoid reacting to every market shift.
4. Track the Impact on Runway -If the dollar drops, your shekel-denominated costs increase relative to your dollar holdings — and your runway shrinks. If needed, adjust your financial plan or even reconsider the timing of your next round.
5. Communicate with Stakeholders - If currency movements are materially affecting your budget or runway, keep your board and investors in the loop. It’s far better to show proactive planning than be caught off guard.
Managing through volatility doesn’t mean you need to become a forex expert — it means adopting a measured, proactive approach with clear rules. A strong currency exposure policy isn’t about beating the market; it’s about protecting your company from it.
you're unsure how exposed your company is or what this means for your budget and runway — let's talk. We're here to help you navigate the uncertainty with clarity and confidence.
📩 Reach us at info@proximo.co.il or message us on WhatsApp at 052-6498821.