Israel Selects Funds for State-Backed Defense-Tech Venture Capital
Israel's Ministry of Finance and Ministry of Defense selected Adir Capital and SLING Capital to launch state-backed venture capital funds focused on advanced defense technologies, boosting local manufacturing and technological independence.
The Accountant General’s Department at the Ministry of Finance and MAFAT at the Ministry of Defense have selected Adir Capital, part of Idan Financial Instruments, and SLING Capital, part of Giza, as winners of a tender to establish state-backed venture capital funds focusing on advanced defense technologies. The newly formed funds will invest in defense-tech companies to strengthen technological, industrial, and defense independence, secure critical supply chains, and encourage investments in local startups.
Boosting Defense-Tech and Supply Chains
According to the Ministry of Finance and the Ministry of Defense, the tender addresses a shortage of venture capital in manufacturing-heavy and high-risk defense sectors, intensified by wartime needs and geopolitical shifts. The initiative aims to connect the defense establishment, private capital, and Israeli technology firms. Following their selection, both funds will work in the coming months to complete investor fundraising and launch operations.
"The establishment of defense-tech venture capital funds is an example of how the state can use smart financial tools to mobilize private capital for national goals," stated Ministry of Finance CEO Israel Malachi. "State guarantees will make it possible to increase investments in advanced technologies, strengthen Israel's technological and manufacturing independence, and support the growth of Israeli companies and entrepreneurs."
Strategic R&D and Technological Superiority
Ministry of Defense Director General Maj. Gen. (Res.) Amir Baram emphasized that the funds are part of the ministry's strategy to bolster the defense-tech sector. He noted that after three years of conflict, increased investment in research and development is vital to preserving the defense establishment's qualitative-strategic edge and developing future technological surprises.
Accountant General Michal Abadi-Boiangiu added that state-backed funds serve as a tool to stimulate economic growth engines, bolster local entrepreneurship, and secure critical supply chains. MAFAT Head Brig. Gen. (Res.) Dr. Danny Gold stressed that bridging private capital, tech firms, and defense requirements will accelerate the development of military technologies and strengthen domestic manufacturing capabilities.
