Brief
Protego Ventures raises $125 million to back Israeli defence startups
The first dedicated defence‑tech venture fund in Israel has secured $125 million, aiming to invest $5‑$50 million in companies that meet Israel’s and global security needs.
By Felo News Desk · Published
Protego Ventures, a two‑year‑old Israeli venture firm, has closed its debut fund with $125 million in capital commitments, according to TechCrunch. The fund, led by Lital Leshem and Lee Moser, is positioned to invest between $5 million and $50 million per company, focusing on startups that address critical defence and security needs for Israel and the wider world.
Protego’s first portfolio company is drone maker XTEND, which went public on the NYSE earlier this month. The firm has chosen a smaller fund size than its $150 million target to avoid diluting the upside of a potential “fund maker” investment such as XTEND, Leshem explained. “Nobody wants to share the pie,” she told TechCrunch.
Key backers include Ares Management, which provided a $30 million limited‑partner commitment that enabled Protego to begin investing immediately. Ares suggested that Leshem and Moser start the firm after the October 7, 2023 Hamas attack on Israel, believing new technologies would be vital to boosting Israel’s defence capabilities.
Leshem, who co‑founded a startup that was acquired for $625 million in 2025, brings 11 years of military and intelligence experience. She described how the October 7 attacks changed her perspective, noting that she was deployed as a reservist while pregnant and witnessed battlefield changes first‑hand.
Protego’s portfolio also includes ASIO, a situational‑awareness system developer that has partnered with Anduril. Leshem said the firm has received strong respect from military circles and that insiders are eager to learn from and collaborate with Protego.
Israeli authorities have noted the shift toward defence‑tech venture capital, awarding state guarantees of about $33 million to VC firms Adir Capital and Sling Capital. Protego declined to participate in the government tender, citing its advanced stage of fundraising.
Looking ahead, Leshem announced plans for a second fund in early 2027, backed by Israeli institutional investors and a large U.S. commitment.
Key facts
- Protego Ventures closed a debut fund of $125 million (techcrunch.com)
- The fund will invest $5‑$50 million per company (techcrunch.com)
- First portfolio company is drone maker XTEND, which went public on the NYSE (techcrunch.com)
- Ares Management provided a $30 million limited‑partner commitment (techcrunch.com)
- Protego plans a second fund in early 2027 (techcrunch.com)
Background
Protego is the first dedicated defence‑tech VC in Israel, founded by Lital Leshem and Lee Moser after the 2023 Hamas attack, reflecting a broader trend of VC firms investing in military and dual‑use technologies.
Why it matters
The fund signals growing private investment in defence technology, potentially accelerating innovation in Israeli security solutions.
What happens next
Protego will launch a second fund in early 2027, targeting Israeli institutional investors and a major U.S. partner.
Sources
- [1] techcrunch.com — originally reported as “Protego Ventures closes debut $125 million fund for Israeli defense tech”
