The Israeli defense technology wave now has a dedicated fund. Herzliya-based Protego Ventures closed its first fund at $125 million, describing itself as Israel's first and largest dedicated defense technology fund. According to TechCrunch, the fund fell short of its original $150 million target, but raised $70 million at a first close and $55 million more afterwards.
What it invests in
The fund targets early-growth companies that already sell their products and whose technology has been proven on the battlefield or in operational settings. Areas include autonomous systems, AI agents, critical infrastructure sensing, resilient navigation and other defense technologies. One portfolio company is XTEND, the drone maker.
Who is behind it
The fund was founded by Lital Leshem and Lee Moser, and its investors include Ares Management, one of the world's largest investment firms. A second fund is planned for early 2027 with a broader scope that will also include US defense startups. The fund closed at the end of September.
The trend
In the past many investors avoided defense companies because of ethical and regulatory limits. But the wars in Europe and the Middle East changed the picture: according to Protego, defense-tech investment worldwide reached $19.8 billion in the first quarter of 2026 alone. Israeli companies such as Kela, raising at a valuation above $1 billion, benefit directly from the shift.
