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TEL AVIV — When Israeli reservist Zach Bergerson saw soldiers relying only on their senses to detect enemy drones, he decided it was time to act. Using his high-tech background, the 36-year-old developed SkyHoop, a wearable device that detects aerial threats using mobile phone technology.
Bergerson’s startup, one of many emerging from Israel’s ongoing war with Hamas, is now in talks for trials with the U.S. Defense Department and has already been piloted in Ukraine. His story illustrates a broader trend: army reservists are returning from the battlefield to launch startups aimed at solving the real-time problems they encountered in combat.
This fusion of battlefield experience and high-tech expertise is driving a new wave of innovation in Israel’s defense industry. More than a third of the defense startups registered with Startup Nation Central—an organization tracking Israeli innovation—were founded after the October 7, 2023 Hamas attack, which launched the current war in Gaza.
“As reservists come back from the battlefield, they’re building companies to solve problems they lived through,” said Lital Leshem, a reservist and co-founder of Protego Ventures. Her fund has studied over 160 defense startups and expects to invest in at least four by year’s end.
The conflict has accelerated global demand for battlefield-tested technologies. In June, during a 12-day air war with Iran, Israel intercepted 86% of incoming ballistic missiles, underscoring the value of its advanced aerial defenses. As Western militaries seek more proven tools, Israeli startups are well-positioned to deliver.
While the U.S. remains a key market, many startups are now shifting focus to Europe. Under a new NATO defense plan, European countries are set to increase defense spending to 5% of GDP. This opens massive opportunities for Israeli defense firms.
Israel’s defense exports reached a record $14.8 billion in 2024, with over half going to European nations—up from 35% in 2023. According to Brigadier General Yair Kulas, who heads Israel’s International Defence Cooperation Directorate, many European nations are replacing outdated systems with Israeli technology.
“The Russia-Ukraine war pushed European nations to modernize. Israeli companies are ready to meet that demand,” Kulas said, though he acknowledged concerns over global political backlash against Israel’s actions in Gaza.
In the past 21 months, more than 57,000 Palestinians have been killed, most of them civilians, according to local health authorities. The devastation has triggered calls in some countries to boycott Israeli arms.
Yet, as Avi Hasson of Startup Nation Central noted, Israel’s innovation is hard to ignore. “This is like the revolution that gave us smartphones. The defense tech boom could have a similar impact.”
With major Israeli firms like Elbit and Rafael eyeing acquisitions or accelerated in-house development, the rapid evolution of Israeli defense startups is reshaping the landscape of global military innovation.