Israel Selects Venture Capital Funds for Defense Tech Amid War Needs

Israel's Ministry of Finance and Ministry of Defense have chosen Adir Capital and SLING Capital to establish state-backed venture capital funds focused on advanced defense technologies. The initiative aims to bolster Israel's technological, industrial, and defense independence by investing in defense-tech companies and strengthening critical supply chains.

The tender was launched to address a shortage of venture capital in high-risk, production-intensive defense sectors, particularly in light of heightened security and technological needs following the recent war and geopolitical shifts. The program seeks to foster collaboration between the defense establishment, private capital, and Israeli tech firms.

Both selected funds are expected to finalize investor recruitment and commence operations in the coming months. Finance Ministry Director-General Israel Malachi stated that the state guarantee will leverage private investment for national objectives, enhancing advanced technology investments and supporting Israeli entrepreneurs. Defense Ministry Director-General Amir Yaron emphasized that the funds are part of the ministry's strategy to strengthen the defense-tech industry and maintain Israel's strategic advantage through increased R&D investment.

Michal Abadi-Boiangiu, the Accountant General, highlighted the funds as a tool to stimulate economic growth engines, bolster technological and industrial self-sufficiency, support local entrepreneurship, and secure critical supply chains. Head of MAFAT (Administration for the Development of Weapons and Technological Infrastructure) at the Ministry of Defense, Danny Gold, added that connecting private capital, tech companies, and defense needs will accelerate the development of defense technologies and enhance domestic production capabilities.