Protego Ventures closes debut $125 million fund for Israeli defense tech

Protego Ventures has completed the final close of its debut fund with $125 million in capital commitments, TechCrunch reported exclusively. The Israeli firm says it is the country’s first and largest venture capital firm dedicated to defense technology.

Led by managing partners Lital Leshem and Lee Moser, Protego plans to invest between $5 million and $50 million per company. Its portfolio includes drone maker XTEND, its first investment, and ASIO, which develops situational awareness systems and has partnered with Anduril.

Protego stopped short of its $150 million target. Leshem told TechCrunch that a smaller fund could make a single successful investment more consequential to overall returns. She described XTEND as a potential “fund maker,” meaning one investment could return the whole fund.

Ares Management is among Protego’s largest backers. Leshem said Ares provided $30 million as a limited partner, enabling the firm to begin investing. She and Moser started Protego after the October 7, 2023, Hamas attack on Israel, she said. Leshem also brings 11 years of experience in military and intelligence work.

Israeli authorities have also backed defense and dual-use investment: Adir Capital and Sling Capital received about $33 million in state guarantees. Protego is planning a second fund for the first quarter of 2027, with a broader scope that includes early-growth U.S. defense technology companies, Leshem said.