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Protego Ventures closes debut $125 million fund for Israeli defense tech
Protego Ventures has successfully closed its debut fund of $125 million to invest in Israeli defense tech startups. Led by Lital Leshem and Lee Moser, the fund aims to support innovations addressing global defense needs, spurred by recent conflicts, including the October 2023 Hamas attack. The fund's strategy allows significant investments per company, focusing on impactful technologies like drones.
Key points
- Protego Ventures completed its first fund with $125 million, targeting defense tech startups in Israel.
- The fund allows investments between $5 million and $50 million per startup, focusing on critical defense and security technologies.
- XTEND, a drone maker, is the first portfolio company and has gone public, enhancing the fund's potential returns.
- The foundation for Protego was influenced by the October 7, 2023, Hamas attack, leading to a focus on new defense technologies.
- Backed by Ares Management with a $30 million investment, Protego is poised to begin investing immediately.
- Both founders bring substantial experience from the military and venture capital fields.
Why it matters
- In 2026, defense tech VC dealmaking set new records, indicating a growing intersection of venture capital and defense.
- The emergence of dedicated defense tech VCs aligns with increasing security threats, prompting innovations in military technologies.
- Similar initiatives have been observed, with Israeli authorities supporting VC firms like Adir Capital to invest in military technologies.
Protego Ventures' formation and inaugural fund reflect a significant shift in the investment landscape towards defense technology, indicating a response to escalating global security challenges, particularly through technological innovation.