GoKawiilProtego Ventures raises $125 million debut fund for Israeli defense startups
Protego Ventures, a two-year-old Israeli venture firm led by Lital Leshem and Lee Moser, has closed its first fund at $125 million, below its original $150 million target. The firm invests $5 million to $50 million per company in defense and security startups, with drone maker XTEND—now public on the NYSE—as its flagship investment. Ares Management backed the fund with $30 million as a limited partner.
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The fund's size fell short of its target partly because a smaller pool concentrates returns from a single breakout success like XTEND, according to Leshem, illustrating how early defense-tech investors are betting on concentrated 'fund maker' outcomes rather than diversification. Ares's involvement and Protego's founding story, tied to the aftermath of the October 7 attack, point to growing institutional capital flowing into Israeli defense startups. This reflects a broader surge in defense tech VC activity globally, suggesting investors increasingly see security technology as a distinct, high-conviction asset class.
- Protego Ventures closed its debut fund at $125 million, below its $150 million target.
- The firm invests $5M-$50M per startup, with portfolio company XTEND recently going public on the NYSE.
- Ares Management backed the fund with $30 million, having encouraged its founders to launch it after the October 7, 2023 attack.
Source: techcrunch.com — Anna Heim, 2026-09-29
Published there as: “Protego Ventures closes debut $125 million fund for Israeli defense tech”
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