“Investors are practically chasing us”: Israel’s defense-tech funding reversal – CTech

“Investors are practically chasing us”: Israel’s defense-tech funding reversal  CTech

“During our seed round, we were barely given a second look, and raising capital for defense tech was a major challenge. Today, however, investors are practically chasing us,” said Rotem Abeles, co-founder of Airis Labs, during a panel on the future of Israel’s defense-tech industry at the TECH1 conference. The discussion, moderated by Major General (Res.) Avi Gil, examined how the war has transformed the industry and whether the current momentum can be sustained. Opening the panel, Gil recalled a time when defense tech attracted little interest from investors and entrepreneurs. Israel’s experience during the war, he argued, has effectively turned the country into a living laboratory for the sector.

The question now is whether the surge in interest will continue and whether new companies can still find room to enter the market. Airis Labs illustrates the shift. The company develops artificial intelligence technology that analyzes visual information and generates intelligence insights in real time. It was publicly unveiled last May after raising $60 million, having previously operated under the radar. Abeles said the company’s secrecy was not part of a deliberate strategy but a consequence of circumstances and timing. “Our seed round was in 2023, and immediately afterward, the war broke out. We went straight into the field and implemented the system. Meanwhile, many things happened in the world,