Israel's First Defense Tech VC Protego Closes $125M Debut Fund

Protego Ventures, Israel's first and largest venture capital firm focused exclusively on defense technology, has closed its debut fund at $125 million, the firm told TechCrunch exclusively. The final closing marks a significant milestone for the Israeli defense tech ecosystem, which has traditionally been dominated by state-backed entities and large prime contractors.

The fund will target early-stage Israeli startups developing dual-use technologies with both civilian and military applications, including artificial intelligence, robotics, cybersecurity, and autonomous systems. While the exact number of portfolio companies has not been disclosed, the firm aims to back around 15-20 companies with initial checks ranging from $1 million to $5 million. The closing comes amid a global surge in defense tech investment, driven by geopolitical instability and the war in Ukraine, which has highlighted the importance of technological superiority on the battlefield.

Protego's fund is expected to bolster Israel's position as a global hub for defense innovation, providing critical capital to startups that often struggle to secure funding from traditional VCs due to the sensitive nature of their work. The move could also attract more international investors to the sector, as governments and defense agencies increasingly look to partner with agile tech firms. However, the fund's focus on defense may raise ethical concerns among some investors, though Protego has emphasized its commitment to responsible innovation and compliance with international law.