Israeli Reservists Drive Defence Tech Innovation
Israeli army reservist Zach Bergerson felt compelled to act when he saw soldiers relying only on their eyes and ears to spot enemy drones. At 36, the high-tech professional developed a wearable device that uses mobile phone technology to alert troops to aerial threats.
His startup, SkyHoop, has moved from secrecy to piloting in Ukraine, while talks continue for a trial with the US Defence Department. Like many reservists, Bergerson has used his military and civilian expertise to support Israel’s defence industry.
New Startups Emerge from Battlefield Experience
Following a deadly Hamas attack on Israel on 7 October 2023, over a third of defence tech startups registered with Startup Nation Central were created. This reflects how rapidly the defence sector is growing amid the war in Gaza.
In June, Israel’s 12-day air campaign against Iranian nuclear and missile targets showcased its aerial defence capabilities. Israel intercepted 86% of Iran’s ballistic missiles, according to the Defence Ministry.
Global demand for advanced, battle-tested technology is rising. Western armies seek innovations refined in real combat, and around 20% of Israeli reservists work in the high-tech sector, helping to develop new defence solutions.
Lital Leshem, also a reservist, co-founded Protego Ventures in December. The fund has studied 160 defence companies and raised $100 million, aiming to invest in four companies by year-end.
Leshem highlighted that reservists are creating companies to solve real issues faced on the battlefield. She acknowledged challenges such as scaling globally and navigating regulations but believes Israeli entrepreneurs can thrive, as seen in the cyber sector.
Israeli Defence Startups Look to Europe
Previously, many Israeli startups viewed the US as their main market. However, under a new NATO spending plan, European countries will increase defence spending from 2% to 5% of GDP over the next decade, creating new opportunities for Israeli firms.
This spending increase will add hundreds of billions of dollars to defence budgets across Europe. Israel’s defence exports reached a record $14.8 billion in 2024, with over 50% going to Europe, up from 35% in 2023.
Despite some calls to boycott Israeli weapons, European countries continue to seek high-quality defence products, said Reserve Brigadier General Yair Kulas, who heads the Defence Ministry’s International Defence Cooperation Directorate.
The Russia-Ukraine war has prompted European nations to upgrade their militaries, sending older equipment to Ukraine and replacing it with new systems, many sourced from Israel. Kulas noted that while Israel’s defence industry faces political backlash, its innovation remains globally respected.
A Surge in Defence Innovation
More than 57,000 Palestinians, most civilians, have been killed in Gaza during the 21-month conflict, according to local health officials, leaving the territory devastated. Kulas admitted that the political challenges could impact future export results, describing the situation as a significant challenge.
Avi Hasson from Startup Nation Central compared the current surge of defence startups by reservists to the tech revolution that led to smartphones two decades ago. These startups may drive major Israeli defence firms such as Elbit, Rafael, and Israel Aerospace Industries to acquire smaller companies or accelerate their technology development.
Hasson noted, “We are now in a different world,” reflecting the transformation of Israel’s defence industry as it adapts to new global demands.
with inputs from Reuters