How Israeli DoD's investment into tech start-ups grew fivefold DefenseTech Summit 2024 in Tel Aviv

Israel’s leadership in the development of defence technologies is reflected in its substantial increase in investments directed toward start-ups and small companies. Over the past 11 months, the Israeli Ministry of Defence has allocated around $168 million to these sectors, a fivefold increase from the previous year. At the recent DefenseTech Summit held at Tel Aviv University, global leaders from the military, academia, and industry convened to explore how Israeli advancements are shaping international defence strategies. 

The Directorate of Defence, Research & Development (DDR&D) has deepened its collaboration with Israeli start-ups, enhancing local manufacturing and boosting the economy. According to an article by the Breaking Defence publication, whose correspondent attended the event, the DDR&D has engaged with 86 start-ups and small firms in 2024, in addition to its existing partnerships with over 200 companies. This shift underscores Israel’s focus on fostering innovation to address modern security challenges.

At the summit, attendees examined cutting-edge innovations, particularly in counter-drone systems, artificial intelligence, and medical technologies—areas of heightened interest since the war with Hamas erupted in October 2023. Hosted in collaboration with the defence ministry, the event highlighted practical applications of Israel’s technological expertise to global security concerns.

On the first day of the tech conference, presentations from key defence officials were given, including Eyal Zamir, the Director General of the Israel Ministry of Defence; Daniel Gold, the Head of Israel’s DDR&D; Avi Berger, the Head of the space office at DDR&D; and Moshe Patel, the Head of Israel’s Missile Defence Organization. Gold elaborated on Israel’s innovative approach to countering drones, which includes using drones to intercept enemy drones and deploying nets to neutralize threats. He also outlined a methodology for integrating start-ups into real-time operations, a process still elusive for other nations. 

Ilana Sherrington, Director of Global Partnerships at Startup Nation Central, noted that Israeli defence technology is experiencing unparalleled growth due to rising global demand and proven operational effectiveness. She emphasized an increase in start-ups focused on dual-use applications and the surge in investments in these technologies. “With top talent and deep tech expertise, Israel is a natural hub for solutions in this area,” she stated.

According to the article, smaller Israeli firms showcased their innovations on the second day of the summit. Regulus, a counter-drone company, discussed the increasing need for countermeasures against unmanned systems, highlighted by global conflicts. Spear presented its loitering munitions, which provide advanced capabilities for surveillance and precision strikes. Israel’s operational experience in regions like Gaza and Lebanon has underscored the necessity for both deployable drones and robust defence systems to counter diverse threats.

Medical technology was another key focus of the summit, where Xmetix unveiled its “smart tourniquet,” designed for rapid deployment to control bleeding efficiently. The summit organizers also presented the audience with information of an innovative method that was being applied by specialists to assist the IDF with solutions to problems faced during the war in Gaza: a “hackathon” where dozens of teams had competed to find solutions, such as a much-needed system that could help carry stretchers over complex terrain. Another system addressed the need to help constrict blood flow in a wound that is not on an extremity, meaning in the neck or some other critical area, so that wounded do not bleed out.

Shaun Maguire, a Global Partner at Sequoia Capital, highlighted the potential of sensors and AI, praising Israel’s leadership in these domains. He pointed out that Israel’s position in quantum technologies and AI places it among the global leaders in the sector. “The race is ongoing, and Israel is at the forefront,” Maguire stated. AI’s transformative impact on defence was a central theme. Director Zamir emphasized its role in revolutionizing defence capabilities, predicting that future battlefields will feature integrated operations between human and unmanned units, with autonomous systems capable of independent decision-making. 

This strategic vision underscores the critical importance of technological adaptation to maintain a competitive edge in modern warfare. Israel’s focus on innovation and its collaborative approach between government and private enterprises position it as a leader in defence technology. By fostering start-ups, advancing dual-use applications, and leveraging real-world experience, Israel continues to address global security challenges effectively and shape the future of defence.

By Nazrin Sadigova