Aleron Ventures has announced an investment of up to $300 million with Rafael Advanced Defense Systems to further its M&A strategy focused on the acquisition of dual-use defense-technology companies.
The initial capital commitment of up to $300 million is expected to be deployed over approximately three years and will be funded equally by Elrond and Rafael.
Tel Aviv, Israel, 1 June 2026/PRNewswire/ — Elron Ventures Ltd. (TASE: ELN), a publicly traded investment firm focused on early-growth investments in defense tech, deep tech, cybersecurity and AI, today announced the acquisition of Rafael Development Corporation Ltd. (RDC), a joint venture between Elron and Rafael Advanced Defense Systems Ltd. (Rafale) for the purpose of executing the merger and acquisition strategy announced by the Company in March. Announced capital commitment of up to $300 million. 2026. The investment plan is subject to approval by Rafael’s board of directors.
Right: Lisya Bahar Manoa, Managing Partner at Arieli Group and Chairperson of Aleron Ventures, Left: Ivan Renov, Founder and Managing Partner of Arieli Group, Photo Credit: Courtesy of Aleron Ventures
Under the investment plan, Aleron and Rafael are equally funding a commitment of up to $300 million over a period of approximately three years, subject to necessary approvals. The expected initial allocation of $100 million, subject to budget approval, reflects Aleron and Rafael’s commitment to actively support the long-term development and growth of the strategy. The M&A strategy focuses on continued investment activity in early-growth companies in cybersecurity, deep tech, defense tech and AI, as well as acquiring controlling stakes in dual-use technology companies serving both defense and civilian markets.
The company believes that changing geopolitical developments, increasing defense budgets and increasing demand for advanced technologies with both defense and civilian applications are driving the need for independent technology companies with global growth potential. In this context, the partnership with Rafael through the RDC offers unique added value to Aleron, including technologies, engineering and operational expertise, validation capabilities and a deep understanding of market needs, supporting the company’s development, commercialization and evolution.
The M&A strategy is expected to complement the company’s existing investment strategy, which is primarily based on exits and secondary transactions. As part of the strategy, Aleron and Rafael are expected to leverage their long-term partnership, which combines Rafael’s technical capabilities, engineering expertise and deep understanding of operational requirements and target markets with Aleron’s investment capabilities, company-building expertise and development leadership. The company notes that most of the approved activity is for the commercialization of technologies for dual-use applications and civilian markets.
Through its long-term partnership with Rafale, Aleron, through the RDC, benefits from unique access to technologies developed within Rafale, as well as the opportunity to evaluate their commercialization and integration into civilian markets. In addition, RDC is engaged in setting up and investing in technology companies, including ventures with potential synergy based on the expertise of Rafale experts, advanced technologies and commercialization of technologies originally developed for defense applications in civilian markets.
As part of the strategy, Elrond and Rafael are expected to leverage their capabilities, combining Rafale’s technical capabilities, engineering expertise and deep understanding of operational requirements and target markets with Elrond’s investment capabilities, company-building expertise and development leadership. The company notes that most of the approved activity is for the commercialization of technologies for dual-use applications and civilian markets.
Lisya Bahar Manoah, Chairperson of Aleron Ventures, said, “We are now entering the next phase of our partnership with Rafael and expanding into M&A through our joint leadership with Dr. Liat Shekher-Naqash, Co-CEO of RDC. The long-standing partnership between Aleron and Rafael combines technical leadership with operational and investment expertise. Expanding RDC’s activities in the M&A sector is a natural next “This move, we believe, can create significant long-term value for shareholders while supporting the growth of leading companies in both defense and civilian markets.”
“In recent years, we have seen a significant acceleration in global investment in the defense technology and dual-use sectors, along with increasing demand for advanced technologies originating in the civilian market,” said Yaniv Schneider, CEO of Elron Ventures and co-CEO of RDC. “The combination of Aleron’s ability to identify, invest in and develop promising companies with Rafael’s exceptional capabilities in technology and operations creates a unique model for building impactful companies in the defense and civilian markets, along with continued investment activity in cybersecurity, deep tech, defense tech and AI. We are building the pipeline and actively identifying opportunities.”
About Elron Ventures
Aleron Ventures Limited (“Aleron”) is a technology investment firm focused on acquiring, investing in and building companies in defense tech, deep tech, cybersecurity and AI. The company operates through multiple investment vehicles including RDC, CyberFuture and Evergreen. In collaboration with Rafael Advanced Defense Systems, RDC focuses on the acquisition of early-stage dual-use and defense technology companies. Elron works closely with entrepreneurs and management teams to support the development and scaling of businesses addressing large and emerging markets with a focus on infrastructure, mission-critical technologies and long-term value creation. Aleron is controlled by US-based investment firm Ariely Group.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable U.S. securities laws, including statements regarding market trends, demand for technology solutions and Elrond’s investment strategy and future position. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially. Factors that may affect such results include changes in market conditions, technological developments, competitive dynamics, portfolio company performance and other risks beyond the Company’s control. Elron does not undertake any obligation to update or revise any forward-looking statements, except as required by law.
contact:
Investor Relations Lisya Bahar-Manoahmanaging partner, Arielle Group Chairman of the Board, elron undertaking +972-3-607-5555; ir@elron.com
media relations Maya reitmanHead of Marketing elron undertaking +972-3-607-5555; pr@elron.com
Smart Wealthhabits shares practical insights on personal finance, wealth building, and small business strategies to help readers make smarter financial decisions and achieve long-term financial success.
