Israel Picks Adir Capital and Sling Capital for State Defense-Tech Funds

Israel has named Adir Capital and Sling Capital as the winners of tenders to run state-backed venture capital funds specializing in advanced defense technologies. The Defense Ministry and the Finance Ministry announced the decision jointly on Tuesday.

The announcement came from the Finance Ministry's Accountant-General's Division and the Directorate of Defense Research and Development, known as MAFAT. The tender committee said it had full confidence in the two companies and in how the funding would "achieve significant milestones and foster breakthrough capabilities for the defense establishment and the entire Israeli economy."

The winners bring corporate backing from established Israeli financial groups. Adir Capital is a component of Idan Financial Instruments. Sling Capital is part of Giza.

Adir Capital's leadership pairs finance with military experience. The firm is led by Barak Capital and Maj.-Gen. (res.) Michel Yanko, who served as head of the IDF Technology and Logistics Directorate during the Israel-Hamas War and now serves as the fund's chairman.

Defense Ministry Director-General Maj.-Gen. (res.) Amir Baram cast the funds as a turning point for the sector. He described them as marking "a pivotal milestone in realizing the Defense Ministry's strategy to transform Israel's unique ecosystem, which integrates the Defense Ministry and the IDF with defense industries and local entrepreneurship, into a global leader in the defense-tech industry."

"After three years of war, we must increase investment in research and development to preserve the defense establishment's qualitative-strategic edge and to develop the next generation of technological 'surprises,'" Baram added.

Accountant-General Michal Abadi-Boiangiu framed the tender outcome as proof of institutional cooperation. She marked the milestone as a recognition of the "close and vital collaboration between the Accountant-General's Division and the defense establishment."

"We are now seeing this vision become reality," she said. "Strengthening Israel's technological and industrial independence, supporting local entrepreneurship, and securing critical supply chains for both routine operations and times of emergency."

MAFAT chief Brig.-Gen. (res.) Dr. Danny Gold called the move a "vital strategic step toward reinforcing Israel's technological superiority."

"This move directly advances the policy MAFAT has championed in recent years to develop and grow the 'Defense-Tech' ecosystem, driven by a deep commitment to supporting Israeli startups and entrepreneurs," Gold said. "The close integration of private capital, the innovation ecosystem, and the needs of the defense establishment will enable us to accelerate the development of groundbreaking technologies, maintain the IDF's qualitative edge, and strengthen the State of Israel's manufacturing independence."

Gil Cohen, Accountant-General Senior Deputy and Finance Division Chief, who also chairs the tender committee, stressed the economic function of the state guarantee. He described it as "a strategic engine for the economy."

"Through state guarantees, we enable the economy to leverage investments in national defense and develop the defense-technology sector, a field vital to Israel's strength, resilience, and growth," Cohen said.

Cohen commended the companies' proposals as "impressive." He added that the Finance Ministry was "confident" that the Israeli defense-tech market would achieve "significant milestones" under the management of the tender winners.

The tender results signal how Israel intends to fund its next defense technology cycle: by channeling state guarantees through private managers with deep local ties. For startups and entrepreneurs in the sector, the two new funds now stand as a fresh source of capital backed directly by the state.