Israeli army reservists are leveraging their battlefield experiences and tech expertise to create cutting-edge defence startups, as seen in the case of Zach Bergerson, a 36-year-old tech professional who developed SkyHoop, a wearable device that uses mobile phone technology to alert troops of aerial threats like enemy drones.
Since its emergence from stealth mode, SkyHoop has been piloted in Ukraine and is in talks for a potential U.S. Defense Department trial. These developments reflect a broader shift in global defence procurement, where real-time battlefield solutions are now in high demand.
The surge in Israeli defence innovation follows the October 7, 2023, Hamas attack that sparked the ongoing Gaza war. According to Startup Nation Central, over a third of all registered Israeli defence tech startups have been created since the conflict began.
U.S. and Israeli venture capital firms, once cautious about investing in defence due to regulatory risks, are now funnelling funds into the sector. One notable example is Protego Ventures, co-founded by reservist Lital Leshem, which has raised $100 million and reviewed 160 defence startups, expecting to fund four by year-end.
The growing demand for Israeli defence technology is being fuelled by global conflicts, particularly the Russia-Ukraine war, and strategic shifts in NATO spending. Under a new defence budget plan, NATO countries will allocate up to 5% of GDP to security, creating vast market potential.
As a result, Israel’s defence exports hit a record $14.8 billion in 2024, with over 50% going to Europe, up from 35% the previous year. Reserve Brigadier General Yair Kulas noted that despite political backlash and boycott calls, buyers still prioritise product quality.
However, challenges loom. More than 57,000 Palestinians have reportedly died in the Gaza conflict, triggering growing international criticism and what Kulas described as the “delegitimization of Israel.” While the long-term impact on defence exports remains uncertain, figures like Avi Hasson of Startup Nation Central believe the current wave of defence tech innovation mirrors the early 2000s digital revolution. Large Israeli firms like Elbit, Rafael, and Israel Aerospace Industries may now face pressure to acquire startups or accelerate their own innovation to keep pace in a rapidly evolving defence landscape.