Elron Ventures, an Israeli investment company focused on early- and mid-stage technology ventures, reported solid results for 2025 while outlining a strategic shift toward defense technology and M&A activity in 2026.
Founded in 1962, Elron invests in sectors including cybersecurity, medical devices, and enterprise software, and has recently increased its focus on technologies tied to security and defense.
For the first time since its establishment, the company said it will lead a mergers and acquisitions (M&A) strategy in the defense tech sector through RDC, its long-standing joint venture with Rafael Advanced Defense Systems. The move signals a deeper push into defense innovation at a time of rising global demand for advanced military and cyber capabilities.
“Through RDC, we combine Rafael’s deep technological expertise and operational leadership with Elron’s experience in identifying and scaling innovative technology companies,” said Lisya Bahar Manoah, chairperson of Elron Ventures and managing partner at Arieli Group, and Yaniv Schneider, CEO of Elron Ventures. “Together, this creates a compelling opportunity to pursue M&A in the early-stage defense tech sector and build the next growth engine for Elron.”
Alongside this pivot, the company plans to realize between one and three companies from its existing portfolio annually, signaling a more proactive approach to generating returns and recycling capital into new opportunities.
Elron announces new cybersecurity company
As part of its 2026 plans, Elron also announced a new investment in cybersecurity company RAVEN, in a co-led round with Norwest. The investment underscores the company’s continued emphasis on cyber and defense-related innovation as key growth drivers.
The company reported a net profit of approximately $9.3 million for 2025. Portfolio realizations generated around $40 million during the year, contributing significantly to overall performance.
Investment activity totaled approximately $14 million in 2025, including two new investments and seven follow-on investments in existing portfolio companies. Elron said this reflects a balanced strategy of backing new ventures while continuing to support portfolio companies as they scale.
As of the end of 2025, Elron’s net asset value (NAV) stood at $184 million, with about $55 million in cash reserved for future investments.
Unlike traditional defense contractors, Elron operates as an investment platform, backing emerging companies rather than manufacturing systems directly. Through its partnership with Rafael Advanced Defense Systems via RDC, however, it maintains a direct link to Israel’s defense ecosystem.
Company leadership said the combination of strong liquidity, disciplined investment activity, and a strategic shift toward defense tech positions Elron to capitalize on emerging opportunities in 2026, particularly in areas where commercial innovation intersects with national security needs.