Israeli drone defense startup D-Fend explores sale at $1 billion valuation
Counter-drone company hires Goldman Sachs as global demand for anti-UAV systems surges.
Israeli counter-drone company D-Fend Solutions is preparing for a potential sale, with Calcalist learning that the company has hired Goldman Sachs to lead a process examining strategic alternatives, including a possible acquisition at a valuation of around $1 billion.
To date, the company has raised approximately $67 million. If it secures its targeted valuation, the deal would represent a major return for investors. Its most recent funding round, completed in early 2024, was led by Haim Shani and Moshe Lichtman’s Israel Growth Partners (IGP), with participation from existing investors Vertex Ventures and Vertex Growth. According to market estimates, the company was valued at roughly $250 million in that round.
D-Fend has emerged as one of Israel’s most prominent companies in the field of counter-drone technology. Its systems are designed to take control of hostile drones using radio frequency and cyber-based technology, without relying on kinetic interception, gunfire, or signal jamming.
The company says its systems can neutralize drones without disrupting surrounding communications infrastructure, an advantage in sensitive environments such as airports.
Its annual growth rate exceeds 50%, according to people familiar with the company’s operations, and it employs around 200 people across Israel and international offices.
The growing global demand for counter-drone systems has been fueled by the widespread use of UAVs in conflicts ranging from Ukraine to the Middle East. In Israel, explosive drones launched by Hezbollah along the northern border have become one of the most difficult operational challenges faced by the IDF during the current war. Some attacks resulted in fatalities among Israeli soldiers, and, as far as is publicly known, no fully effective solution has yet been deployed.
That reality underscores both the urgency of the market and the limitations of existing technologies.
D-Fend was founded in 2016 by Zohar Halachmi, CEO and Chairman; Assaf Monsa, CTO and Vice President; and Yaniv Benbenisti, Chief Product Officer and President. The company is headquartered in Ra'anana and also operates in Virginia and the UK.
Its flagship product, EnforceAir, identifies a drone’s communication protocol, takes control of the aircraft remotely, and safely lands it at a predefined location. The system has since evolved into multiple configurations, including portable backpack-based systems, vehicle-mounted versions, and permanent deployment installations.
The company says its products are used in 30 countries, including the United States, Canada, and Australia. Its advisory board includes former senior officials from the Federal Aviation Administration and the U.S. military, helping strengthen its presence in the American market.
According to people familiar with the matter, D-Fend opted to pursue a sale rather than an initial public offering due to continued weakness in the Nasdaq IPO market. A sale process could provide investors with a faster and more certain return, even if the final valuation falls somewhat below expectations.
The decision also reflects broader momentum in the defense sector, where rising geopolitical tensions and the rapid spread of drone warfare have sharply increased investor interest in military technologies.
Another Israeli company operating in a related sector, UVision, has chosen a different route. The company, controlled by businessman Aaron Frenkel, recently hired J.P. Morgan to pursue a Nasdaq IPO reportedly targeting a valuation of around $5 billion.
