Israel selects two funds for state-backed defense-tech investment – calcalistech.com

Israel selects two funds for state-backed defense-tech investment  calcalistech.com

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. 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