Wars in Ukraine and the Middle East are reshaping how militaries around the world think about innovation, with autonomous drones, artificial intelligence, advanced sensors and battlefield software increasingly coming from startups rather than traditional defense contractors.

Against that backdrop, Israeli venture capital fund Protego Ventures is positioning itself as a dedicated investor in defense technology startups, a sector drawing growing global interest as governments seek faster, more flexible sources of innovation.

Founded by entrepreneurs and investors Lital Leshem and Lee Moser, the Israel-based fund focuses on early- and growth-stage companies developing technologies for defense and national security. It targets fields including artificial intelligence, unmanned systems, robotics and advanced sensing, all areas that are becoming central to modern military capabilities.

Recent conflicts have underscored the shift.

In Ukraine, drones, satellite imagery and AI-driven analytics have become core tools for intelligence gathering and military operations. In the Middle East, the fighting has highlighted demand for faster decision-making systems, autonomous platforms and stronger protection for critical infrastructure.

Those developments have helped accelerate investment in defense technology worldwide. Governments and militaries are increasingly turning to startups to complement traditional contractors, seeking technologies that can be developed and fielded more quickly.

Israel has emerged as one of the leading hubs of this new wave of defense innovation, drawing on a mix of military expertise, engineering talent and a strong startup ecosystem. That combination has produced a growing number of companies developing technologies for modern warfare.

Protego Ventures was established to back that new generation of startups and help connect them with international markets and strategic partners.

The fund was co-founded by Leshem, an entrepreneur and former defense professional, and Moser, an experienced venture capital investor.

Leshem previously co-founded emergency communications technology company Carbyne, which develops platforms designed to modernize emergency response systems. The company works with emergency services organizations around the world and was acquired by Axon for $625 million in 2025.

Before entering the startup world, Leshem spent more than a decade in Israeli security and military roles and continues to serve in the reserves, giving her close familiarity with operational defense needs and with the technologies being developed by Israeli engineers and former military personnel.

Moser is also the founder and managing partner of venture capital firm AnD Ventures. Earlier in her career, she held diplomatic and policy roles related to Israel-U.S. ties, including serving as chief of staff to Israel’s ambassador to the United States.

Together, the two founders say they launched Protego to help bridge the gap between innovative startups and the often complex defense procurement system.

Protego’s strategy centers on startups building technologies with both defense and civilian infrastructure applications.

Among the companies in its portfolio is XTEND, which develops drone-based robotic systems designed to let operators carry out complex missions remotely through immersive control technologies. The company announced earlier this year that it intended to pursue a Nasdaq initial public offering at a valuation of $1.5 billion.

Another portfolio company, Prisma Photonics, uses existing fiber-optic cables as highly sensitive sensors capable of monitoring critical infrastructure such as pipelines, railways and energy networks.

The fund has also invested in startups developing advanced sensing technologies and AI-driven systems aimed at improving situational awareness and operational efficiency in complex environments.

At the same time, Protego is pursuing strategic partnerships with defense and industry players in India and the Gulf, regions that are sharply increasing investment in next-generation security and infrastructure technologies.

Historically, many venture capital firms avoided the defense sector because of long procurement cycles and regulatory hurdles. But that has begun to change.

As geopolitical tensions rise and conflicts highlight the military value of advanced technologies, governments are showing greater willingness to work with startups to speed innovation.

The shift has helped give rise to a new generation of venture capital funds focused specifically on defense technology.

For Israel’s startup ecosystem, that trend marks a new frontier. While the country has long been known for cybersecurity and enterprise software, defense technology companies are increasingly drawing international investors and strategic partners.

Protego’s founders say they expect the sector to keep growing as demand rises worldwide for technologies capable of addressing the security challenges of modern warfare.