Israeli defense-tech startups growing assault drones, defenses in opposition to fiber-optic drones, and munitions of assorted varieties have develop into the pleasure of the Israeli trade because the preventing dies down. Thus far, nonetheless they’ve primarily overseas traders: funds corresponding to Lux Capital, Sequoia, and Peter Thiel’s Founders Fund have invested in distinguished corporations within the sector corresponding to Kela and Covenant. Few Israeli traders have invested in them, aside from new, small funds corresponding to Protego Ventures, Kinetica Ventures, Aurelius Capital, and 10D. In keeping with analysis agency IVC, solely 0.5% of the whole quantity of capital invested in Israeli startups has gone to Israeli defense-tech corporations.
A brand new Israeli enterprise capital targeted on the sector, based by Israelis who beforehand managed household places of work, was unveiled yesterday. To this point it has made 5 investments underneath the radar in younger Israeli corporations. The fund, Stratos Ventures, has raised $50 million out of a goal $80 million from an anchor investor – a British monetary establishment – and former senior figures in protection institutions within the US, Latin America, and India.
The fund guarantees entrepreneurs contemplating founding corporations within the sector, and those that have already taken their first steps, entry to the US Division of Battle, the US Protection Superior Analysis Tasks Company (DARPA), US Central Command (Centcom), and personal US protection funds. The fund has a partnership with startup accelerator The LAB Miami, among the many founders of which is Israeli Ayal Stern.
Among the many fund’s companions and advisors are a former head of the CIA who has not been named, Lieutenant Common (ret.) Michael Barbero, a four-star basic within the US Military who commanded the legendary a hundred and first Airborne Division, and Theo Williams, former head of portfolio improvement at Salesforce Ventures.
Firms with an Israeli connection
The fund was based by three Israelis working in protection funding in household places of work and funds. Rotem Yehuda Kakon served in elite IDF expertise models and headed Consensus Enterprise Group, a UK household workplace managing $1.2 billion in belongings. He was one of many early traders in protection fund AWZ and in Israeli emergency communications platform Carbyne, which was offered to US firm Axon for $625 million. Between 2014 and 2019 Kakon was bureau chief for the minister of the financial system and the minister of environmental safety. He at the moment serves as a director of Xenia Enterprise Capital and Earth and Past Ventures.
Kakon was joined by Aviad Grinfeld, an skilled CFO and former CEO of Avnon Holdings, which additionally invested in protection corporations, and Daniel Fouzailov, a former accomplice in Paz Capital, an Israeli household workplace.
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Stratos focuses on funding in corporations within the pre-seed to seed phases with Israeli founders or a considerable connection to Israel. The intention is to speculate $2-4 million every in 15-20 corporations.
Printed by Globes, Israel enterprise information – en.globes.co.il – on June 25, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
