Prabowo Widodo
The intersection of venture capital and military technology has undergone a profound structural evolution, moving from the periphery of institutional investing to center stage. Global defense tech venture capital dealmaking achieved a milestone in the first quarter of 2026, setting new records as specialized funds emerge worldwide to finance national security and dual-use innovations. This paradigm shift is underscored by the final close of Protego Ventures’ debut fund, which secured $125 million in capital commitments. Positioned as Israel’s first and largest dedicated defense technology venture capital firm, Protego’s successful fundraise highlights the surging investor appetite for next-generation security infrastructure.
Co-founded two years ago by Lital Leshem and Lee Moser, Protego was designed to address the critical defense requirements of Israel and its international allies. The firm’s finalized fund size enables it to deploy between $5 million and $15 million per portfolio company, focusing on technologies capable of meeting modern operational demands. Although the firm initially targeted a $150 million capitalization, leadership deliberately capped the fund at $125 million. This strategic decision was driven by the early success of its portfolio, particularly drone manufacturer XTEND, which made its public debut on the New York Stock Exchange earlier this month. By maintaining a leaner fund structure, Protego ensures that massive liquidity events from portfolio successes translate into outsized returns for its core investors, avoiding the dilution of upside that accompanies larger capital pools.
Foundational Backing and Strategic Genesis
The genesis of Protego Ventures is deeply intertwined with the geopolitical fallout of the October 7, 2023, Hamas attacks on Israel. In the immediate aftermath of the tragedy, global investment firm Ares Management recognized an urgent need to modernize Israel’s defense posture through rapid technological integration. Ares encouraged Leshem and Moser to join forces and establish a specialized vehicle dedicated to military innovation.
To jump-start the initiative, Ares committed $30 million as a foundational limited partner, providing Protego with the immediate capital necessary to begin deploying funds into early-stage ventures. This early backing allowed Protego to build a targeted portfolio quickly. Alongside XTEND, the firm’s investments include ASIO, a developer of advanced situational awareness systems that has already secured strategic partnerships with major defense players like Anduril.
Leadership Expertise and Battlefield Perspectives
Navigating the tightly knit Israeli defense ecosystem requires deep institutional access and operational fluency, assets that Protego’s founders possess in abundance. Lee Moser brings extensive venture capital experience to the firm and continues to serve as a managing partner at the generalist VC fund AnD Ventures. Lital Leshem contributes a vital operational background, combining 11 years of military and intelligence service with entrepreneurial experience, having co-founded a startup that was acquired by Axon for $625 million in 2025.
Leshem’s perspective on defense technology is informed by direct, real-time experience of the shifting modern battlefield. As a military reservist, she was deployed on active duty on October 7, 2023, while pregnant. Remaining in service until shortly before the birth of her child, Leshem witnessed firsthand how contemporary warfare demanded capabilities vastly different from those seen over the previous decade. This frontline exposure heavily influences Protego’s investment thesis, ensuring that the firm backs companies solving immediate, tactical problems faced by armed forces.
Military Reception and the Competitive Landscape
The reception of specialized venture capital within traditional military and defense circles has been remarkably receptive. According to leadership, military personnel frequently engage with the firm—often discreetly—to evaluate, train with, and integrate cutting-edge commercial innovations into operational units. This bridge between fast-moving tech startups and rigid defense procurement structures is becoming a critical component of modern military readiness.
Protego will not occupy the Israeli defense tech landscape alone for long. Recognizing the strategic imperative of nurturing domestic defense innovation, Israeli authorities have established state-backed initiatives to stimulate sector growth. Regulatory bodies recently awarded approximately $33 million in state guarantees to venture firms Adir Capital and Sling Capital to drive investments in military and dual-use technologies, with additional funds actively raising capital. While Protego was too far advanced in its independent fundraising cycle to participate in the government tender, the entry of state-backed capital validates the broader market thesis that defense tech is a permanent fixture of the venture landscape.
Future Expansion and Strategic Outlook
Building on the momentum of its debut fund, Protego is already laying the groundwork for its next phase of growth. The firm plans to launch its second fund in the first quarter of 2027. This upcoming vehicle is slated to feature a broader geographic and operational scope, incorporating institutional backing from Israeli investors alongside a substantial anchor commitment from the United States, with a specific mandate to target early-growth American defense tech companies.
As venture capital continues to flow into national security infrastructure, firms like Protego Ventures are redefining how military capabilities are developed, financed, and scaled. By aligning specialized capital with frontline operational needs, the firm has positioned itself at the vanguard of a global movement transforming defense economics.
