Kinetica Venture Capital has signed a strategic partnership with American 8VC to invest and advance Israeli defense startups in a growing innovative ecosystem.
The partnership is designed to deepen the companies’ shared commitment to advancing defense innovation and empowering mission-driven founders.
“At Kinetica, we believe collaboration is the ultimate force multiplier. We remain committed to supporting mission-driven founders building technologies that protect, empower, and shape a safer future,” the company said.
Founded by Yoav Knoll, a veteran of an elite Israeli Air Force unit, alongside venture capitalists Aaron Applbaum (MizMaa Capital) and Frederic Landau, with Isaac Applbaum (one of the founders of Lightspeed Venture Partners) serving as chairman, Kinetica is positioning itself as a bridge between Israel’s cutting-edge startups and global defense markets.
The fund’s backers include top Israeli generals Maj.-Gen. (res.) Saar Tzur, former commander of the IDF Northern Formation, and Brig.-Gen. (res.) Amit Kunik, a former senior official in Israeli intelligence, alongside US national security leaders, and co-founder of the American defense giant Palantir, Joe Lonsdale, underscoring its ambition to connect Israeli innovation with international defense and intelligence communities.
A year after opening its doors, Kinetica Venture Capital is already making waves in Israel’s defense industry. Speaking to Defense & Tech by The Jerusalem Post, Kinetica said that the knowledge base of the team is “incredible” and “tailor-made” for the industry.
The strategic partnership will not only help fund future investments, but will give strategic advice on penetrating the American market to Kinetica’s companies. It will also open the possibility of bringing American companies to Israel.
Knoll said that together with 8VC, they hope that their companies will “penetrate and disrupt the American market. We have a few companies that can be plugged in and work alongside 8VC companies like Anduril, for example.”
“In Israel, you only need to make a phone call to reach the right person, and it’s relatively easy to deploy your system. That’s why Israel is a great test bed. But in America, it's a more complex process and you need to have the right person in each framework to lobby for the solution-and with 8VC onboard, it will be easier,” Knoll added.
Lifting up local startups
The VC has raised significant funding and investment deployed in several promising defense-tech startups.
Kinetica invests from pre-seed to Series A, focusing primarily on defense-sector start-ups, but also on companies developing dual-use technologies for both defense and civilian markets. While it mainly invests in Israeli companies, it works closely with 8VC, which incubates companies outside Israel.
Kinetica identified itself as “bullish” and has already deployed close to $20 million, investing in six distinct companies:
- Particle specializes in electronic warfare and a new type of energy weapon for air defense.
- LimitlessCNC develops digital control systems for automated precision manufacturing using CNC machines.
- Line5, which raised $20 million in its seed round, focuses on software development for drone technology.
- LiteVision, founded by two former Rafael employees, is focusing on taking electro-optic payloads and making them lighter, with better capabilities, and at a fraction of the cost of other companies.
- MetaCentric is working on an underwater dominance platform.
- SpringAI specializes in algorithms that can prove distortions in the world of social media.
A new paradigm in defense innovation
Kinetica’s announcement comes at a time when Israel’s defense industry is undergoing a transformation. Traditional hardware-heavy models are giving way to software-driven, AI-powered solutions.
Earlier this month at DeepTech Week TLV, Kinetica and 8VC hosted an event at which Applebaum and Alex Moore discussed how autonomy, AI, and Israeli innovation are reshaping the battlefield.
“We ran the World War II model of tanks and planes for decades… and now it’s a new paradigm. We are rethinking everything,” Moore said.
By connecting start-ups with strategic investors who may also become customers, Kinetica aims to open doors for young companies in defense markets that are often closed to small players.
Israel’s growing role in global security
Israel has long been recognized for its defense technology, but the emergence of funds such as Kinetica signals a new phase of venture-backed defense and dual-use innovation.
With its blend of military expertise and venture capital know-how, Kinetica is positioning itself as a force multiplier for Israeli start-ups, helping them scale globally, while addressing pressing challenges in Israel’s national security.
As geopolitical tensions rise and defense innovation accelerates worldwide, Kinetica’s $150 million fund could become a cornerstone of Israel’s next wave of military and dual-use technology breakthroughs.