Israel Industry & Tech Defense Tech Startups

Top Defense Tech Startups in Israel (2026): The 10 to Know

Updated October 2026 · 10 picks

The top defense tech startups in Israel in 2026 are Kela (a defense operating system, valued at about $1 billion), Dream Security (AI cyber defense for nations), Heven Drones (hydrogen-powered drones), Xtend (drone operating systems) and Smart Shooter (AI fire control). Drones and counter-drone systems dominate the field. Ten, below.

Defense tech went from a niche to one of Israel's most-funded startup categories after October 7, 2023, as reservists brought battlefield problems back to their civilian jobs and the Ministry of Defense opened procurement to young companies. Investors followed: Israeli defense startups attracted more than $1 billion in 2025, and 2026 brought unicorn valuations and acquisitions, including Motorola Solutions' $1.5 billion purchase of counter-drone company D-Fend and a string of deals by Ondas. This list covers the independent startups to know as of October 2026, not the large state and listed contractors such as Rafael, IAI and Elbit.

1. Kela Technologies

Connects off-the-shelf drones, sensors and software into one battlefield system.

Focus Defense operating system and autonomous systemsFounded 2024HQ Tel AvivStatus Private, valued at about $1B

Kela builds an open software platform that lets militaries plug in commercial technologies (drones, sensors, AI models) and run them together, instead of waiting years for bespoke systems. It is working with the IDF on autonomous attack drones and won a lethality challenge in the US Defense Innovation Unit's drone program.

It was reported in May 2026 to be raising about $200 million at a valuation of roughly $1 billion, with Bill Ackman and Eric Schmidt among the backers, and is on LinkedIn's 2026 list of top Israeli startups.

Website

2. Dream Security

Builds AI security for governments and the infrastructure states depend on.

Focus AI cyber defense for nations and critical infrastructureFounded 2023HQ Tel AvivStatus Private, valued above $1B

Dream develops AI-driven cybersecurity for national agencies, utilities and critical infrastructure operators, aimed at state-level threats.

Co-founded by Shalev Hulio, Sebastian Kurz and Gil Dolev, it reached unicorn status within about two years and appears on LinkedIn's 2026 top startups list.

Website

3. Heven Drones

Drones that fly longer and carry more by running on hydrogen.

Focus Hydrogen-powered heavy-lift dronesFounded 2019HQ Israel and the USStatus Private, valued at about $1B

Heven builds hydrogen fuel-cell drones for defense, logistics and industrial use, giving much longer endurance than battery drones.

It has been valued at around $1 billion, making it one of Israel's drone unicorns.

Website

4. Xtend

Started in gaming and VR, and turned that into intuitive drone control for soldiers.

Focus Drone operating system and loitering munitionsFounded 2018HQ Tel AvivStatus Nasdaq listing via 2026 merger

Xtend's software lets a single operator fly multiple drones, including indoors and in close combat, with an interface borrowed from gaming. It also makes loitering munitions and has supplied the IDF and US forces.

In February 2026 it announced a merger to list on Nasdaq.

Website

5. Smart Shooter

Makes sights that help soldiers hit small, fast targets such as drones.

Focus AI-assisted fire control systemsFounded 2011HQ YagurStatus Private

Smart Shooter's SMASH systems mount on rifles, vehicles and robotic platforms and use computer vision to lock on to a target and time the shot, which has made them a common answer to small drones.

Led by CEO Michal Mor, it supplies the IDF and several other militaries.

Website

6. InfiniDome

Keeps drones navigating when GPS is jammed or spoofed.

Focus Anti-jamming GPS protection for dronesFounded 2016HQ IsraelStatus Private

InfiniDome makes compact modules that protect GPS receivers from jamming, a problem that became acute as electronic warfare spread across the Middle East and Ukraine.

Founded by CEO Omer Sharar, it sells to drone makers and defense integrators.

Website

7. OptiDefense

A laser counter-drone system designed to be safe to use near civilians.

Focus Low-power laser counter-drone systemsFounded 2019HQ IsraelStatus Private

OptiDefense, which grew out of research at Ben-Gurion University, develops a low-power laser that disables drones' optical sensors rather than burning through them, which makes it usable in populated areas. Its Light Blade system targets a price far below high-power laser weapons.

It is one of several Israeli companies working on cheaper answers to cheap drones.

Website

8. Shifters

Sends teams of robot dogs into terrain soldiers should not enter first.

Focus Four-legged robots for reconnaissanceFounded 2023HQ IsraelStatus Private

Shifters develops coordinated teams of quadruped robots that scout and sense in tunnels, rubble and rough ground, controlled as a group rather than one by one.

It raised a $10.2 million seed round in June 2026.

Website

9. Line5

Building robotic systems to take soldiers out of the most dangerous tasks.

Focus Battlefield roboticsFounded 2025HQ IsraelStatus Private

Line5 develops robotic platforms for the front line, aiming to replace soldiers in high-risk missions.

Founded in 2025, it raised a $20 million seed round and was named among CTech's 50 most promising startups of 2026.

Website

10. Robotican

Builds drones and robots that work without GPS, for reconnaissance and border protection.

Focus Autonomous drones and ground robotsHQ IsraelStatus Private

Robotican makes autonomous aerial and ground platforms for reconnaissance, indoor operations and perimeter security, designed to keep working where GPS is unavailable.

It is one of the longer-established private robotics companies in Israel's defense sector.

Website

Frequently asked questions

What is the biggest defense tech startup in Israel?

Dream Security, co-founded in 2023 by NSO co-founder Shalev Hulio and former Austrian chancellor Sebastian Kurz, and Kela Technologies, founded in 2024, are the most valuable young Israeli defense startups, both valued above $1 billion. Heven Drones has also been valued at around $1 billion.

Which Israeli defense startups were acquired in 2026?

Motorola Solutions bought counter-drone company D-Fend for $1.5 billion in June 2026. Elbit bought ground-autonomy company Bluewhite, and US-listed Ondas bought several Israeli defense companies including Omnisys, Gate Technologies and Aran Defense.

Why are so many Israeli startups building drones and counter-drone systems?

Drones became the defining threat and tool of recent wars, including Israel's own conflicts since 2023. Cheap commercial drones, GPS jamming and swarm attacks created problems that big contractors were slow to solve, and small teams of reservists with recent combat experience moved faster.

Do Israeli defense startups sell abroad?

Yes, subject to Israeli export controls run by the Ministry of Defense's Defense Export Controls Agency (DECA), with its SIBAT directorate promoting exports. Many work with US partners or set up US entities to sell to the Pentagon, and some, like Kela, have won US Defense Innovation Unit programs.

Who invests in Israeli defense tech?

A mix of Israeli VCs, dedicated defense funds, US investors and strategic partners. Kela's 2026 raise drew Bill Ackman and Eric Schmidt, and Anduril's founder visited Israeli defense startups during the year.

1. Kela Technologies

2. Dream Security

3. Heven Drones

4. Xtend

5. Smart Shooter

6. InfiniDome

7. OptiDefense

8. Shifters

9. Line5

10. Robotican

Frequently asked questions

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