Protego Ventures closes debut $125M fund for Israeli defense tech
What's the deal? Protego VenturesDealroom has a profile for this one. Try Dealroom → has completed the final close of its debut fund with $125 million in commitments, targeting Israeli defense tech. The two-year-old firm, led by Lital Leshem and Lee Moser, calls itself the first and largest dedicated defense tech VC in Israel.
The details: The fund will back startups "addressing the critical defense and security needs of Israel and the global community," writing cheques of $5 million to $50 million. Ares ManagementDealroom has a profile for this one. Try Dealroom → is among its biggest backers, committing $30 million as a limited partner and originally suggesting the two founders join forces.
Why now? Ares floated the idea in the aftermath of the October 7, 2023, Hamas attack on Israel, betting that new technologies would prove key to the country's defense. "Everything changed on October 7," Leshem said, describing her deployment as a reservist while pregnant.
Why smaller? Protego stopped short of its $150 million target on purpose. Its first portfolio company, drone maker XTEND, went public on the NYSE this month and now looks like a potential "fund maker" — a single win that could return the whole fund. A smaller fund magnifies that upside. "Nobody wants to share the pie," Leshem said.
The portfolio also includes ASIODealroom has a profile for this one. Try Dealroom →, which builds situational awareness systems and has partnered with Anduril. The founders are leaning on deep networks: Moser remains a managing partner at generalist firm AnD VenturesDealroom has a profile for this one. Try Dealroom →, while Leshem co-founded a startup acquired for $625 million in 2025 and spent 11 years in military and intelligence.
What's the endgame? Protego is planning a second fund for the first quarter of 2027, backed by Israeli institutional investors and one large US commitment Leshem has already secured, with a broader scope that includes early-growth American defense startups.
What could go wrong? Competition is building fast. Israeli authorities awarded VC firms Adir CapitalDealroom has a profile for this one. Try Dealroom → and Sling CapitalDealroom has a profile for this one. Try Dealroom → about $33 million in state guarantees for military and dual-use technologies, and other funds are raising for similar bets. Leshem said Protego was too far along in its own fundraise to join the government tender.
The signal: Defense and venture capital once rarely overlapped. Defense tech dealmaking set a record in Q1 2026, and dedicated firms are emerging worldwide — Protego's debut close marks Israel's arrival as a distinct hub in that shift.
Read more: TechCrunch
Image credit: bjoern.gramm
