Defense tech VC Protego raises $70M in just two weeks, sets sights on $200M
Defense tech VC Protego raises $70M in just two weeks, sets sights on $200M
Led by Lital Leshem and Lee Moser, Israel’s first defense-exclusive VC fund is capitalizing on surging global interest in military technology.
The defense tech field in Israel is experiencing rapid growth. A new venture capital fund, Protego Ventures, is set to focus exclusively on investments in military technologies. The fund has already secured $70 million in investment commitments within just two weeks and is expected to close at $200 million, significantly exceeding its original $150 million target due to high demand, primarily from U.S. institutional investors.
Behind the fund are two young but well-established entrepreneurs: Lital Leshem (38) and Lee Moser (39). Protego is Israel’s first venture capital fund solely dedicated to defense tech and has already made a $5 million investment in drone company Xtend. It is currently evaluating dozens of other start-ups in the sector. The surge in defense start-ups includes those established before the war and many more that emerged in its aftermath.
Despite their relatively young ages, Leshem and Moser are prominent figures in the Israeli high-tech ecosystem. Moser, a founding partner at venture capital fund AnD Ventures, previously served as the Chief of Staff for Michael Oren at the Israeli Embassy in Washington. She will continue her roles at AnD Ventures while actively managing Protego.
Leshem co-founded the start-up Carbyne in 2014, which focuses on upgrading emergency response systems. Former Prime Minister Ehud Barak was the company’s first investor, and since then, Carbyne has raised $140 million, with its most recent funding round led by U.S. telecom giant AT&T. The company is expected to surpass a $1 billion valuation in its next round of fundraising. While Leshem no longer holds an active role in Carbyne, she retains shares in the company. In recent years, she has collaborated with entrepreneur Erik Prince, founder of the American security firm Blackwater, representing him in the UAE even before the signing of the Abraham Accords.
The idea for Protego was born during an advocacy campaign Moser and Leshem participated in, shortly after the latter completed her reserve service in the Gaza Division. While collaborating with a delegation from Kibbutz Nirim, the two met senior U.S. industry officials who expressed interest in Israel's defense technology, sparking the fund’s creation.
This marks yet another milestone in the growing defense tech boom in Israel. Last week, Calcalist reported that former IDF Chief of Staff Aviv Kochavi joined the AWZ investment firm to identify and lead investments in the defense sector. A few months ago, a new fund focused on defense, aviation, and space was announced, led by former Israeli Air Force Commander Amikam Norkin, with Harel Insurance as an anchor investor. This fund, too, is actively raising additional capital and plans to support both Israeli and international companies while strengthening Israel’s defense ecosystem.
International interest in Israel’s defense tech sector is also increasing. The U.S.-based Lux Capital made its first investments in Israeli security start-ups, joining major players like Sequoia and Andreessen Horowitz, who have long operated in the region. Last summer, a delegation of prominent U.S. venture capital funds visited Israel to explore new defense innovations. Israeli venture capital fund 10D recently added Alon Kantor as a partner to expand its investments in defense tech.
This surge of investment is driven by a global shift in defense strategies. Conflicts in recent years, including the ongoing Ukraine-Russia war and the dramatic changes in the Middle East, have increased demand for advanced technologies. Modern warfare is shifting towards smaller, unmanned systems, such as drones, rather than large, traditional platforms. Governments are increasing defense budgets, streamlining procurement processes, and embracing collaborations with start-ups, making it easier for venture capital to enter a sector historically dominated by giant defense contractors. Initiatives by NATO and the Pentagon to work more flexibly with start-ups further encourage venture capital firms to invest in defense tech, recognizing a significant and timely opportunity.
