Protego Ventures raises $125m debut fund for Israeli defense tech
New capital gives the specialist VC firepower for larger checks now and a broader global push from 2027.
Protego Ventures has closed its first fund at $125 million, positioning itself as Israel’s largest specialist defense-tech venture firm and enabling check sizes from $5 million to $50 million per startup. Co‑founded by Lital Leshem and Lee Moser after the October 7, 2023 Hamas attacks, the firm focuses on technologies aimed at Israel’s security needs and broader global defense requirements. Early portfolio companies include drone maker XTEND, which recently listed on the NYSE and is seen internally as a potential “fund maker,” as well as ASIO, a situational awareness startup partnered with Anduril. Ares Management anchored the new fund with a $30 million LP commitment, giving Protego capital to deploy quickly into Israeli defense startups. While Israel’s government is separately backing other defense-focused funds with around $33 million in guarantees, Protego is planning a second, broader fund for Q1 2027 that will also target early‑growth U.S. defense-tech companies.
Why it matters
The new fund concentrates more private capital on Israel’s defense-tech sector at a moment of heightened security focus, allowing Protego to write sizable checks into companies like XTEND and move quickly thanks to backing from investors such as Ares Management. Alongside separate Israeli state guarantees for other defense-focused funds and Protego’s plan for a second, more globally oriented fund in 2027, it signals a deeper pipeline of financing for both local and U.S. defense-tech startups over the next few years.
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Sources
- TechCrunch