Key facts
- Protego Ventures, an Israeli defense tech VC firm, has closed its debut fund with $125 million.
- The fund will invest between $5 million and $50 million per company.
- Ares Management is one of Protego's largest backers, with a $30 million investment.
- Protego's portfolio includes drone maker XTEND, which recently went public on the NYSE.
- Other portfolio companies include ASIO, which develops situational awareness systems.
- Protego plans a second fund in Q1 2027, focusing on early-growth US defense-tech companies.
Protego Ventures, an Israeli venture capital firm focused on defense technology, has announced the final close of its debut fund with $125 million in capital commitments. The firm, co-founded by Lital Leshem and Lee Moser, aims to invest between $5 million and $50 million in startups addressing critical defense and security needs for Israel and the global community.
Ares Management is a significant backer, having invested $30 million and encouraged Leshem and Moser to establish Protego following the October 7, 2023, Hamas attack on Israel. The firm believes new technologies are crucial for enhancing Israel's defense capabilities.
Protego's investment strategy prioritizes companies that can significantly impact overall returns, as demonstrated by its decision to not pursue its initial $150 million target. This approach aims to maximize the upside from potential "fund maker" investments, such as its first portfolio company, drone maker XTEND, which recently became publicly traded on the NYSE.
Other portfolio companies include ASIO, which develops situational awareness systems and has collaborated with Anduril. Leshem, who has extensive experience in the military and intelligence fields, and Moser, a seasoned venture capitalist, leverage their networks to navigate the defense sector.
Protego is already planning its second fund, slated for the first quarter of 2027. This future fund will have a broader scope, including early-growth American defense-tech companies, and will be backed by Israeli institutional investors and a secured U.S. commitment.