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Defense VC Surges: $125M Fund Launched
29 Sep
Summary
- Protego Ventures, Israel's largest defense tech VC, closed its debut fund with $125 million.
- The fund will invest between $5 million and $50 million in startups addressing critical security needs.
- Ares Management is a significant backer, encouraging Protego's launch after October 7th.
Defense technology venture capital has seen a significant surge, with dealmaking reaching record highs in the first quarter of 2026. New venture capital firms exclusively focused on defense startups have emerged worldwide.
Protego Ventures, established two years ago, identifies itself as Israel's first and largest dedicated defense tech VC. The firm recently finalized its debut fund, securing $125 million in capital commitments. This fund allows Protego to invest between $5 million and $50 million per company.
Their investment focus is on startups addressing critical defense and security needs for Israel and the global community. Protego's portfolio includes drone maker XTEND, which recently went public on the NYSE. Ares Management, a major supporter, encouraged the formation of Protego following the October 7, 2023, Hamas attack.
Protego is planning a second fund for the first quarter of 2027, with a broader scope including early-growth American defense-tech companies. This initiative indicates a continued expansion of investment in the defense technology sector.
