Protego Ventures completes $125M debut fund to back Israeli defense tech

# What happened Protego Ventures, a two-year-old venture firm focused exclusively on defense technology in Israel, completed the final close of its debut fund at $125 million. The firm positions itself as the first and largest dedicated defense-tech VC in Israel and will write initial checks in the $5 million to $15 million range.

# Why the fund size matters Protego originally targeted $150 million but stopped at $125 million. The founders say a smaller fund preserves upside when an early portfolio company becomes a major exit. XTEND, a Protego portfolio company that went public on the NYSE earlier this month, is cited internally as a potential fund-maker — a single investment capable of producing a large portion of returns. Raising more capital now would dilute the impact of such a win across a larger investor base.

# Who's behind Protego The firm is led by Lital Leshem and Lee Moser. Leshem brings 11 years of military and intelligence experience and co-founded a startup that sold in 2025 for $625 million. She was also deployed as a reservist on October 7, 2023, an event the founders say helped sharpen their view of immediate defense needs. Moser retains a managing partner role at generalist VC AnD Ventures.

# Portfolio and partnerships XTEND is the headline portfolio company given its recent NYSE listing. Another named holding, ASIO, builds situational awareness systems and has formed a partnership with U.S. defense firm Anduril. The firm focuses on startups addressing defense and security needs in Israel and abroad.

# Market context and competition Deal activity in defense tech picked up significantly through 2026, prompting new specialized funds worldwide. In Israel, government programs are also directing capital: other VC firms received roughly $33 million in state guarantees to invest in military and dual-use technologies. Protego did not participate in that state tender because it was already too far into its fundraising.

The environment makes for faster capital flows into defense and dual-use startups, which increases both opportunity and competition for deal flow. Protego emphasizes leveraging founders' defense networks to access technologies and military customers.

# What's next Protego is planning a second fund targeted for the first quarter of 2027. The next fund is expected to include Israeli institutional investors and at least one substantial U.S. commitment that the firm says it has already secured. The scope will broaden to include early-growth American defense-tech companies, extending Protego's reach beyond Israel.

# Takeaway for founders and investors For founders building defense and dual-use technologies in Israel, Protego offers a dedicated, deep-network GP with military experience and existing LP backing. For investors, the firm's strategy shows a preference for concentrated bets where a single successful exit can significantly influence returns. The broader market shows rising public and private capital into defense tech, meaning more funding options but also more competition for high-quality deals.