Protego Ventures Raises $125 Million Fund to Invest in Israeli Defence Tech Startups

Protego Ventures has closed its debut $125 million venture fund focused on Israeli defence technology startups, as global investment interest in defence and dual-use technologies continues to grow.

Founded two years ago by Lital Leshem and Lee Moser, the firm describes itself as Israel’s first dedicated defence technology venture capital firm. The fund will invest $5 million to $15 million in companies developing technologies to address defence and security challenges.

Defence Technology Becomes a Growing Venture Capital Focus

Defence technology investment has attracted increasing attention from venture capital firms as startups develop new systems for military, security, and dual-use applications. Industry research has highlighted record activity in defence tech venture capital dealmaking during 2026.

Protego Ventures said its fund focuses on startups building critical defence and security technologies for Israel and international markets. The firm’s portfolio includes drone manufacturer XTEND and situational awareness company ASIO.

Backing Israeli Defence Innovation

Protego stopped fundraising below its initial $150 million target, saying a smaller fund structure can increase the impact of successful investments. XTEND, one of its early portfolio companies, became a public company after listing on the NYSE.

The firm received backing from executives at Ares Management, who encouraged Leshem and Moser to establish Protego following the October 7, 2023, Hamas attack on Israel. Leshem said the founders believed emerging technologies would play a key role in future defence capabilities.

Protego’s investment strategy has focused on Israeli defence startups developing technologies for modern security needs. The firm’s leadership combines venture capital experience with backgrounds in technology, military, and intelligence fields.

Moser remains a managing partner at AnD Ventures, while Leshem brings startup experience and more than a decade of military and intelligence experience to Protego’s investment approach.

Competition Expands in Defence Tech Funding

Protego is entering a market where more investors and government-backed initiatives are targeting defence technology companies. Israeli authorities have also supported investment programs to increase funding for military and dual-use technologies.

Israel has selected additional investment funds through state-backed programs focused on next-generation defence technologies. Other organisations have also been exploring opportunities in the sector.

The broader defence and security technology market has also seen activity from established companies expanding through acquisitions and partnerships.

Protego is already preparing for a second fund planned for 2027, with a broader focus that may include early-growth U.S. defence technology companies.