The Israeli government has selected two domestic firms to establish state-backed venture capital funds to invest in risk-intensive defense-tech startups.
Adir Capital, part of Idan Financial Instruments, and SLING Capital, part of Giza, will make strategic investments aimed at strengthening Israel’s defense-industrial base, securing critical supply chains, and advancing defense technology.
Israel’s finance and defense ministries selected the firms to address a venture capital gap in high-risk, capital-intensive defense technology, in response to security demands arising from the Gaza war.
The program aims to connect Israel’s defense establishment, private capital, and technology companies. A state guarantee will help reduce investment risk and attract funding for strategically important defense technologies.
To Retain Qualitative Edge
“Establishing venture capital funds in the defense-tech sector is an example of how the state can use smart financial tools to mobilize private capital for national goals,” Israeli Ministry of Finance Director General Israel Malachi said.
“The state guarantee will allow for increased investments in advanced technologies, strengthen Israel’s technological and production independence, and support the growth of Israeli companies and entrepreneurs. This is a move that connects security, innovation, and economic growth.”
Israel Ministry of Defense Director General Major General (reserve) Amir Baram said the funds’ establishment is a key milestone in the ministry’s strategy to transform Israel’s defense-tech ecosystem into a global leader.
“After three years of war, we must increase investment in research and development in order to preserve the qualitative-strategic advantage of the defense system and the development of the next technological ‘surprises.’”