Protego Ventures Secures First $125 Million Fund Focused on Israeli Defense Technology

The intersection of defense and venture capital is becoming increasingly significant. In the first quarter of 2026, defense technology venture capital transactions reached a record high, with new investment firms emerging globally to support defense-oriented startups.

Among these is Protego Ventures, which is two years old and claims to be the largest dedicated defense tech venture capital firm in Israel. Co-founded by women Lital Leshem and Lee Moser, Protego has successfully closed its inaugural fund, securing $125 million in capital commitments, as reported exclusively by TechCrunch.

This fund allows Protego to invest between $5 million and $50 million in individual companies, focusing on initiatives that tackle critical defense and security challenges faced by Israel and the wider international community, according to their website.

One of its prominent investments includes the drone manufacturer XTEND, which became their first portfolio company to go public on the NYSE this month. Protego intentionally stopped at a $125 million fund, slightly below its initial $150 million target. A smaller fund can enhance the impact of significant individual investments on overall returns, with XTEND emerging as a potential “fund maker”— an investment that could yield returns sufficient to cover the entire fund’s worth. “Nobody wants to share the pie,” Leshem remarked.

Ares Management stands as one of Protego’s key backers. This investment firm recommended that Leshem and Moser collaborate to establish Protego following the Hamas attack on Israel on October 7, 2023, believing that innovative technologies would be essential for strengthening Israel’s defense strategies in light of evolving threats, according to Leshem.

With a $30 million investment as a limited partner, Ares provided the crucial backing Protego required to commence investing immediately. Besides XTEND, the portfolio includes companies like ASIO, which specializes in situational awareness solutions and has formed a partnership with Anduril.

Leshem notes that their reception in defense sectors has been favorable. “On the military side, there’s a lot of respect, and individuals are approaching us—often discreetly—to engage, learn, train, and access our technology and innovations.”

Navigating the Israeli market tends to be easier for insiders, and the two founders of Protego are capitalizing on their connections. Moser, an experienced venture capitalist, will continue her role as a managing partner at the generalist VC firm AnD Ventures. Leshem, who co-founded a company sold for $625 million in 2025, also brings over a decade of military and intelligence experience to their strategy.

“The situation shifted drastically on October 7,” Leshem shared. She was on reserve duty as a pregnant soldier during the attacks. “I was on the front lines, witnessing how the battlefield dynamics had evolved over the past decade until I entered the delivery room.”

However, Protego will not be the sole player in this arena for much longer. Israeli authorities have recognized this trend, recently granting the venture capital firms Adir Capital and Sling Capital approximately $33 million in state guarantees to invest in military and dual-use technologies, with additional funds also raising capital for similar initiatives. (Leshem mentioned that Protego was too advanced in its fundraising efforts to participate in the government’s tender.)

In the meantime, Protego is gearing up for its next phase: a second fund expected in the first quarter of 2027, backed by Israeli institutional investors along with a significant commitment from a U.S. source that Leshem has already secured. This new fund will have a broader focus, extending to early-growth defense tech companies in the U.S.