Defense tech has become a mainstream venture category, and Protego Ventures is a new entrant focused on Israel. The two-year-old firm announced the final close of its debut fund at $125 million, led by Lital Leshem and Lee Moser. The fund targets startups addressing Israeli and global defense needs, with checks ranging from $5 million to $50 million per company.
Protego deliberately stopped below its $150 million target. Leshem said a smaller fund magnifies the impact of a single big win; XTEND, its first portfolio company, recently went public on the NYSE and could return the entire fund. "Nobody wants to share the pie," she said. Ares Management contributed $30 million as a limited partner and encouraged the founders to start the firm after the October 7, 2023 attack.
The firm is part of a broader trend. Defense tech VC dealmaking hit a record in Q1 2026, and Israeli authorities have awarded state guarantees to other funds like Adir Capital and Sling Capital. Protego is already planning a second fund in Q1 2027, with a broader scope including early-growth American defense-tech companies.