Hustler Words – The traditional boundary between venture capital and national defense is dissolving, giving way to a high-stakes new asset class. In a move that signals a massive shift in the geopolitical investment landscape, Protego Ventures has officially closed its inaugural fund with $125 million in capital commitments. As the first and most significant dedicated defense-tech VC in Israel, the firm is positioning itself at the epicenter of a global surge in military innovation.
The fund, spearheaded by industry veterans Lital Leshem and Lee Moser, is designed to deploy significant capital—ranging from $5 million to $50 million per venture—into startups tackling the most pressing security challenges facing Israel and the international community. Interestingly, Protego opted to close the fund below its initial $150 million target. This strategic decision was driven by the explosive performance of its first portfolio company, drone manufacturer XTEND, which recently debuted on the NYSE. By keeping the fund size leaner, the partners aim to maximize the impact of "fund-maker" successes like XTEND, ensuring that a single massive win can yield extraordinary returns for their investors.
The genesis of Protego is deeply rooted in the shifting realities of modern warfare. Following the October 7, 2023, attacks, Leshem and Moser recognized an urgent need for technologies capable of meeting evolving battlefield threats. The firm secured early momentum through a $30 million commitment from Ares Management, which acted as a cornerstone limited partner. This backing allowed the duo to move swiftly, building a portfolio that already includes ASIO, a situational awareness specialist that has already forged a partnership with the defense giant Anduril.
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The leadership team brings a unique blend of battlefield intelligence and financial acumen. Leshem, who experienced the realities of the conflict firsthand while serving as a pregnant reservist, offers over a decade of military and intelligence expertise. Moser complements this with deep-rooted venture capital experience. Together, they are bridging the gap between the front lines and the boardroom, noting that military officials are increasingly seeking out their expertise to integrate cutting-edge innovation into active operations.
While the Israeli government has begun incentivizing the sector through state guarantees for firms like Adir Capital and Sling Capital, Protego is already looking toward global expansion. The firm has announced plans to launch a second fund in early 2027. This upcoming vehicle is expected to draw from Israeli institutional investors and significant U.S. commitments, with a mandate to scale early-growth American defense-tech companies alongside its Israeli counterparts.
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