New defense tech venture G2 emerges with high-profile founders, quiet controversy
Amir Geva, Executive Vice President of North American Affairs at Israel Aerospace Industries (IAI), founded a startup with the founder of Trax. Despite signing a conflict of interest agreement, according to which he is only allowed to invest in the company, in a deck to investors he was defined as the company's president. Geva: "It was a mistake by the editors of the presentation."
The defense tech market is heating up, and Amir Geva, Executive Vice President of North American Affairs at Israel Aerospace Industries (IAI), appears to have ambitions of his own. Calcalist has learned that despite his senior role at the government-owned defense company and the considerable challenges IAI faces, particularly in the U.S. market, Geva recently co-founded a new defense startup called G2 alongside former Defense Ministry officials and Dror Feldheim, one of the co-founders of the unicorn startup Trax.
G2 was founded a few months ago and is currently in the process of raising capital. According to a pitch deck obtained by Calcalist, Geva is listed as both a founder and president of G2, despite holding a top position at IAI, raising questions about conflicts of interest.
The other co-founders are Feldheim and Col. (res.) Ryan Gity, who served in the Directorate of Defense Research & Development (DDR&D) for over two decades. In one of his final roles, Gity headed the Autonomy and AI Department, and later served as secretary of the Nagel Committee, which examined Israel’s defense budget for the next decade.
At G2, Gity serves as both CEO and CTO, while Feldheim, who stepped back from his role at Trax over a year ago, serves as Chief Strategy Officer. Feldheim co-founded Trax in 2010 with Joel Bar-El, developing technology to extract business intelligence from smartphone images.
A source close to G2 told Calcalist that Gity is the driving force behind the startup, having recruited both Feldheim and Geva. Gity and Geva have known each other for many years from their joint service in the Israel Defense Forces. G2 is developing an AI-based platform aimed at enhancing performance and speed of defense and homeland security systems in the field.
Because IAI operates in the same defense sector as G2, Geva was required to obtain formal approval before taking part in any external business activity. Calcalist has learned that IAI CEO Boaz Levy gave Geva permission, under strict conditions. Geva was not allowed to hold an executive role or receive compensation, and he was required to sign a conflict-of-interest agreement.
Still, the presentation circulated to investors shows Geva listed as G2's "President." In response to Calcalist, IAI confirmed that Geva had reported his intentions in advance and pledged to avoid any conflict of interest. “Geva does not currently hold any position or role in G2, is not involved in its operations, and is only a passive shareholder,” the company stated.
Internal sources at IAI were surprised to see Geva’s designation in the pitch deck. According to them, his shareholding status had been approved only as a non-operational founder. Following Calcalist’s inquiry, IAI launched an internal review, after which Geva claimed the title listed in the presentation was a mistake. He said he had not seen the presentation, which was prepared for investors, and has since asked for it to be corrected. “I am not involved in G2’s day-to-day activities,” he told Calcalist. “I was unaware of the deck and have instructed it be amended.”
Geva has served as an IAI EVP since 2021. Previously, he was a Research and Development Attaché for the U.S. Department of Defense. In his current role, Geva leads IAI's efforts in the American market, one of its most critical, overseeing strategic partnerships, supplier relations, and implementation of U.S. security assistance programs.
Despite recent speculation, those close to Geva deny that he intends to leave IAI to focus on G2. Meanwhile, the startup is preparing to launch a new fundraising round in September, after raising $6 million in Seed funding in April. The upcoming round is aimed at expanding G2’s operations in the U.S. and Europe, including the establishment of subsidiaries to market its AI-based defense products.
G2’s investor presentation notes that the U.S. market for homeland security and critical infrastructure is expected to reach approximately $500 billion in the coming years. The firm also sees surging demand in Europe, where NATO member states are significantly increasing defense spending in response to the prolonged war in Ukraine and the threat of regional escalation.
