Protego Ventures closes $125M debut fund for defense tech startups

Protego Ventures, an Israeli venture capital firm specializing in defense technology, has closed its debut fund at $125 million. Led by founders Lital Leshem and Lee Moser, the firm aims to support startups developing solutions for critical defense and security challenges.

Debut Fund Closed at $125 Million

Protego Ventures, a two-year-old Israeli venture capital firm, has closed its debut fund at $125 million. According to TechCrunch, the fund is focused on startups addressing critical defense and security needs in Israel and globally. The firm positions itself as Israel’s first and largest dedicated defense technology VC.

Investment Strategy and Backers

The fund will invest between $5 million and $50 million per company, targeting startups developing technologies for defense and security applications. Protego’s first portfolio company, XTEND, recently went public on the New York Stock Exchange (NYSE), marking a significant milestone for the firm.

Ares Management, a global alternative investment manager, is a major backer of the fund, committing $30 million as a limited partner.

Founders’ Background and Vision

Protego Ventures was founded by Lital Leshem and Lee Moser, both of whom bring extensive experience in military operations, intelligence, and entrepreneurship. Leshem, a reservist with 11 years of military service, was deployed on the day of the October 7 attacks while pregnant. She later co-founded a startup that was acquired for $625 million in 2025. Moser, meanwhile, remains a managing partner at AnD Ventures, a generalist VC firm.

Leshem stated that Protego’s military and operational expertise has earned respect within defense circles, attracting interest from global partners seeking technology and innovation.

Expansion Plans and Future Fund

Protego Ventures plans to launch a second fund in the first quarter of 2027. According to TechCrunch, the next fund will expand its scope to include early-growth American defense-tech companies, backed by Israeli institutional investors and a large U.S. commitment.

The firm’s expansion reflects growing interest in defense technology as a venture capital category, particularly in markets with significant security challenges.

Context: Defense Tech as a VC Category

The rise of dedicated defense tech VC funds like Protego highlights a broader shift in venture capital toward sectors addressing national security and dual-use technologies. Israel, in particular, has seen increased investment in startups developing solutions for military, cybersecurity, and situational awareness applications.

Competitors in the Israeli market include firms like Adir Capital and Sling Capital, which also focus on defense and deep-tech investments.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Protego Ventures’ debut fund signals a growing appetite for specialized defense technology investment, particularly in Israel, where geopolitical challenges have accelerated demand for innovative security solutions. The firm’s focus on dual-use technologies—those with both military and civilian applications—could attract founders working at the intersection of AI, robotics, and national security.

For operators, this fund’s emergence highlights a few key trends:

1. Defense Tech as a VC Category: While defense tech has historically been dominated by government contracts, the rise of dedicated VC funds like Protego suggests a shift toward scaling startups in this space with traditional venture capital. Founders in this sector may find more structured support for commercialization and growth.

2. Women in Defense Leadership: Leshem and Moser’s leadership challenges the stereotype of defense tech as a male-dominated field. Their backgrounds—combining military experience, operational expertise, and startup success—could inspire more diverse talent to enter the sector.

3. Cross-Border Opportunities: Protego’s plans to expand into U.S. investments reflect the global nature of defense innovation. Founders outside traditional hubs like the U.S. or Europe may find new avenues for funding if they can demonstrate relevance to international security needs.

However, the sector’s unique risks—regulatory hurdles, long sales cycles, and geopolitical dependencies—remain significant. Founders considering this space should weigh the potential for impact against the challenges of navigating defense procurement and compliance.

Key takeaways

• Protego Ventures has closed its debut $125 million fund, targeting Israeli defense tech startups.
• The firm is led by two women with military and startup experience, Lital Leshem and Lee Moser.
• Investments will range from $5 million to $50 million per company, focusing on critical defense and security needs.
• Ares Management invested $30 million as a limited partner, signaling strong institutional backing.
• Protego plans to launch a second fund in Q1 2027, expanding into early-growth U.S. defense-tech companies.

FAQ

What is Protego Ventures’ investment focus?

Protego Ventures focuses on defense technology startups addressing critical security and defense needs, primarily in Israel and globally. It invests in companies developing technologies for military, cybersecurity, and situational awareness applications.

Who are the founders of Protego Ventures?

Protego Ventures was founded by Lital Leshem and Lee Moser. Leshem is a former reservist with 11 years of military experience and a startup founder, while Moser remains a managing partner at the generalist VC firm AnD Ventures.

How much does Protego Ventures plan to invest per company?

The firm plans to invest between $5 million and $50 million per company, depending on the startup’s stage and needs.

Who are Protego Ventures’ major backers?

Ares Management is a major backer of Protego’s debut fund, committing $30 million as a limited partner.

What are Protego Ventures’ future plans?

Protego Ventures plans to launch a second fund in Q1 2027, expanding its scope to include early-growth American defense-tech companies.

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