Elron Ventures and Rafael Commit Up to $300 Million for Dual Use Defense Acquisitions

Elron Ventures Ltd. and Rafael Advanced Defense Systems Ltd. have announced a capital commitment of up to $300 million for their joint venture, Rafael Development Corporation (RDC), to execute a mergers and acquisitions strategy focused on dual use defense technology companies. The plan was announced in a press release and will be funded equally by both companies over approximately three years, pending approval by Rafael’s Board of Directors.

An initial allocation of $100 million is expected, subject to budget approval. The strategy aims to acquire controlling stakes in technology firms that serve both defense and civilian markets, while continuing investment activity across cybersecurity, deep tech, defense technology, and AI sectors.

Through RDC, Elron and Rafael intend to combine Rafael’s engineering and operational expertise with Elron’s investment and company building capabilities. The partnership provides access to technologies developed within Rafael and supports their commercialization in civilian markets. The majority of the planned activity will focus on dual use applications and technology ventures with potential synergies in defense and commercial sectors.