Israeli Defense Tech Firm ASIO Raises $15 Million in First Funding Round Led by Protego and Aliya Capital
ASIO, an established Israeli defense technology company based in Kfar Saba, has completed its first external funding round, raising $15 million. Founded in 2003 by brothers Tomer and Yaniv Malchi, ASIO operated for over 20 years without outside investment, financing its profitable operations independently. The recent geopolitical instability and the rise of specialized defense tech venture capital funds prompted the company to seek external capital. The funding round was led by Protego, managed by Lital Leshem and Lee Muzar, alongside Miami-based Aliya Capital Partners, which manages $6 billion in assets and focuses on growth-stage technology companies in AI, space, defense, and autonomous systems.
ASIO currently employs 70 people and plans significant expansion due to increasing demand for its products. Notably, the American defense tech giant Anduril, which is establishing an Israeli branch, is a key customer. ASIO is expected to supply components for Anduril's unmanned aerial vehicles in a deal valued at tens of millions of dollars. The company’s core technology, GeoFusion, underpins tactical communication systems designed for maneuvering battalions, enhancing operational independence, situational awareness, and navigation resilience even when GPS or communications are disrupted.
ASIO’s systems are widely deployed across all IDF branches, including the operationally used OLR system, and are also utilized by international security clients. The investment will support expanding production capabilities, accelerating product development, and entering new markets. ASIO recently opened a U.S. office and recruited senior executives from major defense companies, including Giora Shaked, formerly of Rafael and Israeli high-tech firm Cognite. Lital Leshem emphasized that ASIO’s proven technology addresses real operational needs and that the company reached this stage without prior funding while maintaining profitability.
