Protego Ventures Closes $125 Million Inaugural Defense-Tech Fund in Israel
Protego Ventures closes its inaugural defense-tech fund at $125 million, becoming Israel's largest fund specializing in battle-tested technologies and international scaling.
Protego Ventures, a defense-tech venture capital fund founded by Lital Leshem and Lee Moser, has successfully closed its inaugural fund at $125 million (approximately 382 million shekels). Protego is recognized as Israel's largest defense-tech fund and the first to specialize exclusively in this sector, targeting early-growth companies that have already begun commercializing products with proven battlefield performance.
Expanding Global Reach and Strategic Partnerships
The fund assists portfolio companies in scaling operations internationally by connecting them with strategic partners, investors, and defense clients worldwide. Leshem served for 11 years in the IDF and intelligence, co-founded Carbyne, and later managed business development in the US alongside defense, aerospace, and cyber investments. Moser is a venture capitalist and managing director at AnD Ventures, having previously served as chief of staff to US Ambassador Michael Oren and contributed to expanding BlackRock's presence in Israel.
Protego collaborates closely with major defense entities in Israel, including Elbit Systems and Israel Aerospace Industries, as well as the US military and Lockheed Martin. This extensive network and strategic partnership model help portfolio companies adapt their technologies to local regulatory standards, integrate seamlessly into existing military architectures, and navigate complex procurement processes across diverse jurisdictions.
Portfolio Highlights and Operational Success
Portfolio companies supported by Protego have transitioned rapidly from research and development to active operational deployment, securing major contracts in complex tactical environments. The fund's initial investment targeted XTEND, a developer of autonomous robotic systems utilized by the IDF, the US military, and international allied forces. Protego led XTEND's $70 million Series B funding round, and the company recently achieved public status, trading on the New York Stock Exchange.
Additional portfolio investments include ASIO, which builds navigation and situational awareness systems for maneuvering forces operating in GPS-denied or heavily jammed communication environments, with technology integrated into Anduril systems. Prisma Photonics was also backed for its proprietary technology that transforms existing fiber-optic cables into thousands of kilometers of distributed acoustic sensors, monitoring electrical grids, pipelines, and critical infrastructure using artificial intelligence to detect real-time threats without installing extra hardware.
"One of the greatest advantages of Israeli defense-tech companies is their proximity to the field. They develop solutions driven by real operational needs, receive direct feedback from end users, and rapidly iterate on their products," said Lital Leshem, co-founder of Protego.
Market Growth and Future Projections
Global defense budgets have surged by 50% over the past decade, with venture capital transactions in the defense sector approaching $20 billion in the first quarter of 2026. Governments worldwide increasingly prioritize field-tested technologies ready for immediate operational deployment.
Protego is currently preparing to launch its second fund, which will expand investments into early-growth American defense enterprises amid regulatory reforms accelerating US defense procurement and record research and development budgets.
