Protego Ventures closes $125M debut fund for Israeli defense tech
Original: Protego Ventures closes debut $125 million fund for Israeli defense tech
Why This Matters
Defense tech VC is scaling fast globally; Protego's early XTEND IPO win shows the category can produce outsized returns.
Israel-focused defense tech VC Protego Ventures has closed its debut fund at $125 million, below its $150M target — a deliberate choice. Led by Lital Leshem and Lee Moser, the firm backs startups addressing Israel's and the global defense community's security needs, with check sizes ranging from $5M to $50M.
Protego Ventures, a two-year-old firm billing itself as Israel's first and largest dedicated defense tech VC, has closed its debut fund at $125 million. The firm deliberately stopped short of its $150 million target. The reasoning is blunt: portfolio company XTEND, a drone maker and Protego's first investment, went public on the NYSE earlier this month and is shaping up as a potential 'fund maker' — an investment that could return the entire fund on its own. A smaller capital pool amplifies that upside. 'Nobody wants to share the pie,' said co-founder Lital Leshem.
Ares Management anchored the fund with a $30 million LP commitment and, according to Leshem, was instrumental in encouraging the two founders to launch Protego in the wake of the October 7, 2023, Hamas attack on Israel. Leshem herself was deployed as a military reservist that day while pregnant. She also co-founded a startup acquired for $625 million in 2025 and brings 11 years of military and intelligence experience. Co-founder Lee Moser remains a managing partner at generalist firm AnD Ventures.
Beyond XTEND, the portfolio includes ASIO, which develops situational awareness systems and has partnered with Anduril. The fund's investment range — $5M to $50M per company — reflects an ambition to write meaningful checks across stages. Defense tech VC dealmaking hit a record in Q1 2026 globally, and Protego is riding that wave with a distinctly Israeli angle.