Israeli Defense Tech Fund Protego Ventures Raises $125 Million

Protego Ventures, an Israeli defense technology investment fund, has successfully raised $125 million (approximately 382 million shekels) for its first fund. Co-founded by Lital Leshem and Li Mozer, Protego is recognized as Israel's largest defense-tech fund and the first to specialize in this sector. The fund focuses on early-stage growth companies whose products have already demonstrated battlefield efficacy and begun sales.

Protego aids these companies in expanding internationally by connecting them with global business partners, investors, and defense clients. The fund leverages its collaborations with Israeli defense entities like Elbit and Israel Aerospace Industries, as well as the U.S. military and Lockheed Martin. This network helps portfolio companies adapt their products to local requirements, integrate into existing systems, and navigate procurement processes worldwide.

Companies within Protego's portfolio have moved from development to operational use, securing contracts and operating in complex environments. Notable investments include XTEND, a developer of autonomous robotic systems used by the IDF and U.S. military, which recently became a public company on the New York Stock Exchange after Protego led its $70 million Series B round. Protego also invested in ASIO, which creates navigation and coordination systems for maneuvering forces, and Prisma Photonics, which transforms fiber optic cables into sensors for monitoring infrastructure. Rilian, another investment, develops AI for cybersecurity tasks.

Leshem, a former IDF and intelligence officer and co-founder of Carbyne, highlighted the advantage of Israeli defense companies being close to the field, developing products based on operational needs and receiving direct user feedback for rapid improvement. Mozer, an experienced venture capitalist, emphasized the fund's focus on supporting companies that have proven their technology and are entering their growth phase, understanding the complexities of defense procurement and market expansion.

The global defense budget has grown significantly, with venture capital deals in the sector nearing $20 billion in early 2026. Nations are increasingly seeking battle-tested technologies for immediate deployment. Protego is now preparing to launch a second fund, aiming to increase investments in early-stage American defense companies, spurred by U.S. defense procurement reforms and record R&D budgets.