Protego Ventures has closed its first fund at $125 million, establishing what the firm described as Israel’s first dedicated venture vehicle focused on early‑growth defense technology companies. The announcement comes as XTEND, the fund’s first portfolio company, completed its initial public offering on the New York Stock Exchange at a valuation of $1.5 billion.
Protego was founded by Lital Leshem and Lee Moser, both veterans of Israel’s defense and intelligence ecosystem. The firm invests in Israeli companies that have demonstrated operational performance and are seeking capital and access to international defense markets. According to the partners, the fund is designed to address a gap between global defense‑tech investment and Israeli companies that have already validated their technologies in active operational environments.
Global defense spending has increased significantly over the past decade, rising 50% according to industry data. Venture investment in defense technology reached $19.8b.in the first quarter of 2026, driven by heightened geopolitical tensions and demand for systems that can be deployed immediately.
Protego said this environment has created an opportunity for companies that have already moved from development to deployment within the Israel Defense Forces and allied militaries.
"Protego was built on the conviction that many of the best defense companies in the world are being built right now, in Israel, under real operational demands, iterating according to real frontline conditions, for real customers," said Protego Co-founder & Managing Partner Lital Leshem. "That feedback loop produces technologies that are faster, leaner, scalable and more flexible than almost anything developed through traditional procurement channels. The free world is defending itself, and smart capital is following."
XTEND, which develops autonomous robotic platforms, is operational within the IDF, the US Department of Defense, SOCOM, and multiple allied forces. Protego led the company’s $70m. Series B round prior to its public listing.
Protego’s Fund I portfolio includes companies working across autonomy, AI, sensing, and contested‑environment navigation. ASIO Technologies develops autonomy and resilient navigation technologies and has integrated its systems with platforms built by global defense giants. Prisma Photonics uses existing fiber‑optic infrastructure to create large‑scale sensing networks for critical infrastructure monitoring. Rilian builds AI systems designed for mission‑controlled environments, incorporating practitioner‑level operational expertise.
The firm says founders frequently reported difficulty securing investment from generalist venture capital firms unfamiliar with defense procurement, as well as from defense‑focused investors without experience in Israel’s security ecosystem. Protego positions itself as a bridge between those two gaps.
"What we kept hearing from founders was that generalist investors didn't understand their business, and defense-focused investors didn't understand the Israeli security ecosystem," said Protego Co-founder Lee Moser. "There was real capital flowing into defense globally, but it wasn't reaching the companies that deserved it most – the ones that had already proven their technology under the toughest operational conditions, with genuine customers, in some of the most demanding arenas in the world. We built Protego to bridge that gap, and the close of Fund I combined with our portfolio companies' tremendous achievements in just a short period of time demonstrates that this combination is exactly what the market needed."
With Fund I now closed, Protego is preparing to launch Fund II, which will expand the firm’s investment activity into the United States. The partners say that ongoing procurement reform, increased R&D budgets, and sustained geopolitical demand are conditions that mirror the environment that enabled Israel’s early‑growth defense sector.
Protego maintains partnerships with major defense organizations including Elbit Systems, Israel Aerospace Industries, Lockheed Martin, and US Army Futures Command.