There was little overlap between defense and venture capital in the past, but times have changed. In the first quarter of 2026, defense technology venture capital deals set records, and there are also new venture capital firms that invest exclusively in defense startups around the world.

One of them is the two-year-old Protego Ventures. The company claims to be Israel's first and largest venture capital firm focused on defense technology. Led by two women, Lital Leshem and Lee Moser, TechCrunch has learned exclusively that its first fund has completed final fundraising, securing a capital commitment of $125 million.

According to its website, the scale of this fund enables Protego to invest between 5 million and 50 million US dollars in each company, with a focus on startups that "address key defense and security needs of Israel and global society."

This includes drone manufacturer XTEND, which is also Protego's first portfolio company. XTEND went public on the New York Stock Exchange earlier this month. This is also why Protego did not set a fundraising target of $150 million: a smaller fund has a greater impact on the overall return from a single large successful investment. And since XTEND now seems to have the potential to become a "fund maker" – that is, a single investment could be enough to recoup the entire fund's cost – raising more funds would only distribute that potential for growth among more investors. Leshem said, "No one wants to share the pie."

Ares Management is one of the biggest supporters of Protego. Leshem stated that after Hamas attacked Israel on October 7, 2023, this investment institution suggested that Leshem and Moser join forces to establish Protego, believing that in the face of new threats, new technologies will become key to enhancing Israel's defense capabilities.

Leshem stated that Ares, as a limited partner, invested 30 million US dollars, providing the necessary support for Protego to begin investing immediately. In addition to XTEND, its portfolio also includes startups such as ASIO, which develops situational awareness systems and has already collaborated with Anduril.

Leshem indicates that there is a strong reaction within the defense community to Protego. 'At the military level, people respect us very much. They come to communicate with us, even in a low-key manner, to learn from us, to train with us, and of course, to acquire our technology and innovations as well.'

However, the Israeli market is easier to navigate for those in the industry, and the two founders of Protego are making full use of their respective networks. Moser is a seasoned venture capitalist who will continue to serve as the managing partner of the general-purpose venture capital firm AnD Ventures. As for Leshem, she co-founded a startup that was acquired in 2025 for $625 million and also brings with her 11 years of experience in the military and intelligence fields.

Leshem told TechCrunch: “After October 7th, everything changed.” On the day of the attack, she was deployed as a reservist, and at that time she was also pregnant. “Basically, until I arrived at the delivery room, I was there, witnessing with my own eyes how the battlefield operated, which was different from what I was accustomed to over the past ten years.”

Protego will not have a long-term monopoly in this field. Israeli authorities have also noticed this shift, granting approximately $33 million in state guarantees to venture capital firms Adir Capital and Sling Capital for investments in military and dual-use technologies. Other funds are also raising capital for similar bets. (Leshem says that Protego has gone too far in its own fundraising process to participate in government tenders.)

Meanwhile, Protego is already planning for the next step: they intend to establish a second fund in the first quarter of 2027, with support from Israeli institutional investors and a substantial commitment from the United States that Leshem has already secured. The investment scope will be broader, including defense technology companies in the early growth stage in the United States as well.