Protego Ventures has closed its debut fund at $125 million, making it the largest venture capital firm dedicated solely to Israeli defense technology.
The two-year-old firm, led by Lital Leshem and Lee Moser, completed the final close after originally targeting $150 million, TechCrunch reported Monday. Protego plans to write checks between $5 million and $15 million per company.
The firm invests in startups addressing what its website calls "the critical defense and security needs of Israel and the global community." Its first portfolio company, drone maker XTEND, went public on the New York Stock Exchange earlier this month.
Protego deliberately capped the fund below its target. A smaller pool of capital magnifies the impact of a single successful exit on overall returns, the firm said.
The fund close reflects a broader surge in defense technology investing. Defense tech venture dealmaking set a record in the first quarter of 2026, according to industry data, reversing decades of reluctance among investors to back weapons and security companies.
New VC firms have launched worldwide to chase the sector, drawn by rising military budgets and demand for drones, surveillance systems, and cybersecurity tools. Israel's defense industry has been a particular focus given the country's active military operations and its concentration of hardware and software engineering talent.
Protego's leadership team stands out in a sector still dominated by men. Leshem and Moser are among the few women running a defense-focused venture fund at scale.
XTEND's NYSE listing gives Protego an early exit path and credibility with limited partners. The company makes drones designed for tactical military and law enforcement use.
It is unclear how many companies Protego has backed so far or how quickly it plans to deploy the $125 million. The firm did not immediately respond to a request for additional comment.
Defense startups have attracted scrutiny from some investors who avoid weapons-related businesses on ethical grounds. That resistance has softened as governments push for faster procurement of new technology and traditional defense contractors face pressure to innovate.
