Israel selects two funds for state-backed defense-tech investment
Adir Capital and SLING Capital will raise private capital for investments in Israeli defense companies and startups.
The Finance Ministry’s Accountant General Division and the Defense Ministry’s MAFAT (the Directorate of Defense Research and Development) have selected Adir Capital, managed by Eidan Financial Instruments, and SLING Capital, managed by Giza, as the winners of a tender to establish venture capital funds focused on advanced defense technologies and backed by state guarantees.
The funds will invest in defense-tech companies, with the aim of strengthening Israel’s technological, industrial and security independence, establishing critical supply chains, and encouraging investment in startups and companies developing advanced defense technologies.
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Defense Ministry Director General Amir Baram
(Photo: Defense Ministry Spokesperson and Public Relations Division)
The initiative is also intended to address a shortage of venture capital for defense sectors that require substantial investment and carry high levels of risk, according to the Finance and Defense Ministries. The need has become more pronounced amid the security and technological demands that have emerged from the war and broader geopolitical changes.
The program is designed to connect the defense establishment, private capital and Israeli technology companies. Following their selection, the two funds will spend the coming months raising capital from investors and preparing to begin operations.
Finance Ministry Director General Israel Malachi said that “the establishment of venture capital funds in the field of defense-tech is an example of how the state can use smart financial tools to mobilize private capital for national goals. The state guarantee will make it possible to increase investment in advanced technologies, strengthen Israel’s technological and manufacturing independence, and support the growth of Israeli companies and entrepreneurs.”
Defense Ministry Director General Maj. Gen. (res.) Amir Baram said the establishment of the funds is part of the ministry’s strategy to strengthen Israel’s defense-tech industry.
“After three years of war, we must increase investment in research and development in order to preserve the qualitative-strategic advantage of the defense establishment and the development of the next technological ‘surprises,’” he said.
Accountant General Michal Abadi-Boiangiu said state-guaranteed funds are a tool for encouraging new growth engines in the economy. She said the initiative is intended to strengthen technological and industrial independence, support local entrepreneurship and establish critical supply chains.
The head of MAFAT, Brig. Gen. (res.) Dr. Danny Gold, said connecting private capital, technology companies and the needs of the defense establishment is intended to accelerate the development of defense technologies and strengthen production capabilities in Israel.
