Wartime Innovation Spurs Israeli Defence Tech Surge Amid Global Demand

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Amid the ongoing conflict in Gaza and growing geopolitical instability, Israel’s defence technology sector is experiencing a dramatic acceleration, driven by battlefield innovation and global demand. Civilian reservists with tech backgrounds, such as Zach Bergerson, are creating new startups in response to real-time battlefield needs—merging military insight with cutting-edge innovation.

Bergerson’s company, SkyHoop, which developed a wearable drone-detection system for soldiers, is now being piloted in Ukraine and is in talks for a potential U.S. Department of Defense trial. His story is emblematic of a broader trend: Israeli startups, born from frontline experiences, are attracting significant investment from both Israeli and American venture capital firms, many of whom had previously avoided defence tech due to regulatory risks.

According to Startup Nation Central, over one-third of Israel’s defence startups were founded after the October 7, 2023 Hamas attack that ignited the current war. The surge in wartime innovation has generated strong interest from Europe, especially as countries increase defence spending under NATO’s new mandate to raise defence budgets to 5% of GDP.

Lital Leshem, a reservist and co-founder of the new $100 million fund Protego Ventures, noted that Israeli tech professionals returning from the battlefield are creating companies to solve problems they directly experienced. Her fund has reviewed over 160 defence startups and expects to invest in a select few by the end of the year.

Israel’s defence exports reached a record $14.8 billion in 2024, with Europe accounting for over 50%—up from 35% the year before. Demand has spiked as European countries replace old systems sent to Ukraine and seek combat-tested, high-tech solutions. However, this boom comes alongside political backlash: calls for boycotts over Israel’s actions in Gaza have intensified, with over 57,000 Palestinians reported killed by local health officials, most of them civilians.

Despite global criticism, many nations continue to prioritize performance over politics when it comes to defence acquisitions. Reserve Brigadier General Yair Kulas, head of Israel’s International Defence Cooperation Directorate, acknowledged the tension between Israel’s innovation reputation and growing international delegitimization, especially in light of the Gaza humanitarian toll.

Analysts like Avi Hasson from Startup Nation Central believe this moment mirrors the tech boom of the early 2000s, when military innovations laid the groundwork for the smartphone era. Major Israeli defence firms—Elbit, Rafael, and Israel Aerospace Industries—are now eyeing startups for potential acquisitions or rapid internal development to keep pace with the evolving market.

As the war reshapes global defence priorities, Israel’s battlefield-tested startups may find themselves at the forefront of a new global arms innovation wave—if they can overcome regulatory and political hurdles.

JPMorgan Hires Guggenheim Executive to Boost Mid-Cap Tech Investment Banking

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JPMorgan Chase is bolstering its technology investment banking division with the addition of Mike Amez, a senior executive from Guggenheim Securities, according to an internal staff memo reviewed by Reuters. Amez is set to join the bank in September as Head of Mid-Cap Technology Services, based in Chicago.

In the memo, Global Co-Heads of Technology Investment Banking Chris Grose and Greg Mendelson said Amez brings a deep background in IT services, cybersecurity, and cloud infrastructure, with a career focused on building enduring client relationships in the fast-evolving tech landscape. At Guggenheim, he was a Senior Managing Director in its tech investment banking group.

Amez’s appointment is part of JPMorgan’s ongoing expansion of its technology banking franchise, especially targeting medium-sized tech companies, a fast-growing market segment. The hire comes just weeks after the bank added four senior executives from Goldman Sachs, Bank of America, and Lazard to strengthen its West Coast tech banking operations.

Already a dominant force in technology dealmaking, JPMorgan is sharpening its sub-sector expertise to maintain its lead, according to Dealogic data. The bank has recently played a central advisory role in high-profile transactions, including:

  • Global Payments’ $24.25 billion acquisition of Worldpay,

  • Turn/River’s $4.4 billion buyout of SolarWinds,

  • DoorDash’s $3.9 billion takeover of Deliveroo,

  • And CoreWeave’s $23 billion public listing in March.

JPMorgan’s continued investment in specialized talent suggests a clear strategy to deepen market penetration in niche but fast-growing tech verticals, especially as deal activity rebounds in select sectors like AI, cloud, and fintech.

US SEC Issues First Guidance Toward Rules Governing Crypto ETFs

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The U.S. Securities and Exchange Commission (SEC) took an important first step last week toward formalizing regulations for exchange-traded products (ETPs) linked to cryptocurrencies. The new 12-page guidance document lays out disclosure requirements for crypto ETFs, marking a shift in approach by the regulator under Republican leadership. This signals progress on approving dozens of pending applications for ETFs tied to cryptocurrencies such as Solana, XRP, and even former President Donald Trump’s meme coin.

The SEC has also formed a task force to develop detailed rules, revamped its crypto enforcement team, and stepped back from some high-profile enforcement cases previously seen as wins. This new guidance aims to create a clearer regulatory framework, helping asset managers and exchanges navigate the approval process more efficiently.

Industry experts welcomed the guidance as an essential step. Matt Hougan, CIO of Bitwise Asset Management, emphasized that its existence acknowledges crypto ETFs as part of the mainstream and begins to set “rules of the road” that benefit both issuers and the SEC. The guidance stresses issuers must explain in plain language key factors like custody arrangements and the unique risks within the competitive crypto market.

A more significant upcoming development will be a new SEC listing template to replace the current requirement for exchanges to submit a special exemption request (known as a 19(b)4 filing) for each crypto ETF listing. Eliminating this form could drastically shorten the approval timeline from up to 240 days to about 75 days, accelerating product launches.

While crypto ETFs linked to coins like XRP, Polkadot, Dogecoin, and the Trump meme coin await approval, many expect the next wave of products will focus on Solana. Some firms are already innovating around regulatory hurdles: last week, REX Financial and Osprey Funds launched the first U.S. ETF providing Solana exposure via an indirect structure involving staking—a process where crypto holders validate blockchain transactions for rewards—allowing them to bypass some commodity fund regulations.

REX’s Solana ETF raised $12 million on its first day, with CEO Greg King acknowledging ongoing regulatory uncertainty but optimistic about the SEC’s forward progress. He also hinted at plans to launch a spot Solana ETF once the SEC finalizes the relevant rules.