New fund to invest in young Israeli defense-tech cos
A new venture capital fund, Stratos Ventures, has launched to invest in Israeli defense-tech startups. The fund aims to bridge the gap between Israeli innovation and US defense markets.
Why it matters
The fund highlights the growing intersection of private capital and defense technology in the Israeli startup ecosystem.
Israeli defense-tech startups developing attack drones, defenses against fiber-optic drones, and munitions of various kinds have become the pride of the Israeli industry as the fighting dies down. Up to now, however they have mainly interested foreign investors: funds such as Lux Capital, Sequoia, and Peter Thiel s Founders Fund have invested in prominent companies in the sector such as Kela and Covenant. Few Israeli investors have invested in them, other than new, small funds such as Protego Ventures, Kinetica Ventures, Aurelius Capital, and 10D. According to research firm IVC, only 0.5% of the total amount of capital invested in Israeli startups has gone to Israeli defense-tech companies.
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