Israel’s Finance Ministry and Defense Ministry have selected Adir Capital, managed by Eidan Financial Instruments, and SLING Capital, managed by Giza, to establish venture capital funds focused on advanced defense technologies. The tender was conducted by the Accountant General Division and the Directorate of Defense Research and Development, known as MAFAT, and the selected funds will operate with state guarantees. This announcement marks a significant step toward expanding investment in the country’s defense technology sector.
Addressing a Critical Funding Gap
The initiative aims to close a notable shortage of venture capital in defense sectors that require substantial investment and carry high levels of risk. This shortage has become more urgent amid the security and technological demands that have emerged from the war and broader geopolitical changes. The new funds will focus on strategic investments designed to strengthen Israel’s technological, industrial and security independence.
Building a Bridge Between Defense and Private Capital
The program is designed to connect the defense establishment, private investors and Israeli technology companies. Following their selection, the two funds will spend the coming months raising capital from investors and preparing to begin operations. The state guarantee mechanism is intended to reduce risk and encourage private capital to support nationally significant defense technologies.
A Response to Evolving Security Needs
The funds are expected to target startups and companies developing advanced defense technologies that address Israel’s evolving security challenges. The Finance and Defense Ministries emphasized that the initiative is meant to support critical supply chains and reduce dependence on external sources. It is also intended to create jobs and drive economic growth while responding to the needs of the defense establishment.
Official Perspectives on the Initiative
Finance Ministry Director General Israel Malachi said the establishment of venture capital funds in the defense-tech field shows how the state can use smart financial tools to mobilize private capital for national goals. He added that the state guarantee will increase investment in advanced technologies and support the growth of Israeli companies and entrepreneurs. Defense Ministry Director General Major General (res.) Amir Baram said the funds are part of a broader strategy to strengthen Israel’s defense-tech industry.
Supporting Industrial and Technological Independence
Accountant General Michal Abadi-Boiangiu described state-guaranteed funds as a strategic 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. MAFAT head Brigadier General (res.) Dr. Danny Gold said the close connection between private capital, technology companies and defense needs will accelerate the development of breakthrough technologies.
A Wider Economic and Security Impact
Tender committee chair Gil Cohen, senior deputy to the accountant general and head of the financing division, said state guarantees are not only a risk reduction mechanism but also a strategic engine for the economy. He expressed confidence that under the professional management of the selected firms, the funds will achieve significant results and advance Israel’s defense-tech market. The initiative also aligns with a global trend of government incentives for private capital in the defense field.
The selection of Adir Capital and SLING Capital represents a concrete milestone in Israel’s effort to integrate defense needs with private investment and local innovation. Over the coming months, the funds will work to complete investor recruitment and begin operational activity. Officials say the state-backed model will strengthen critical supply chains, boost economic growth and preserve Israel’s strategic technological advantage.