Protego Ventures, Israel's first dedicated defence technology venture capital firm, has completed the final close of its debut fund with $125 million in capital commitments. The fund, led by Lital Leshem and Lee Moser, represents a significant shift in the venture capital landscape as defence and tech investment increasingly overlap, with the firm already demonstrating success through its first portfolio company, drone maker XTEND, which recently went public on the NYSE. This development reflects a broader trend of venture capital firms emerging globally to invest in defence startups.

The fund falls short of its original $150 million target by design, as smaller funds allow successful investments like XTEND to have greater proportional impact on overall returns. Protego will invest between $5 million and $50 million per company in startups addressing defence and security needs. Major backer Ares Management contributed $30 million as a limited partner, and was instrumental in encouraging Leshem and Moser to establish the firm following the October 7, 2023 attacks. Leshem brings eleven years of military and intelligence experience, whilst Moser is an established venture capitalist, and the firm is already planning to launch a second fund in the first quarter of 2027.