With the publication of its strong results for 2025, Elron Ventures reports on its growth strategy for 2026 -
- M&A - In addition to its activity as a fund that invests in technology companies in early growth stages, Elron is expanding its joint activity with RDC (Elron's long-standing partnership with Rafael), to also consider executing M&A transactions. In this framework, it will work to gain control of target companies, particularly in the Defense Tech sector. The aforementioned strategy was approved by the Elron Board of Directors and the RDC Board of Directors and is also subject to receiving approval from the Rafael Board of Directors and obtaining the required regulatory approvals by Rafael.
- Divestments and Exits - Elron also provides a forecast for exits for the first time, anticipating 1-3 exit transactions of portfolio companies in 2026, as it announced in a presentation to investors last month. These could be transactions for the sale of a company in its entirety or secondary transactions.
- New investments - Elron reports a new investment in 2026 in the cybersecurity company Raven, which develops a platform for protecting applications at runtime and preventing attacks in real time. Raven completed a financing round that includes a Seed round led by Norwest and a Post-Seed round led by Elron Ventures, amounting to a total fundraising of $20 million, alongside leading investors in Israel and around the world, including UpWest, RedSeed, SentinelOne, Jibe Ventures, and Elron's CyberFuture microfund. The funds will be used to accelerate product development, expand Go-To-Market activity in the US, and increase the company's workforce.
M&A Defense Strategy: The goal of the move is to add a growth engine to the company in the Defense Tech sector through the acquisition of technology companies, and Elron estimates that this activity, alongside existing investment activity, may enable significant additional value creation for the company and its shareholders.
As part of this activity, Elron will work to identify target companies in early stages for their acquisition and possible long-term holding, while developing their activities with the aim of generating both value enhancement and cash flows. In order to implement this strategy, RDC and/or Elron will examine the need for additional financing. This activity, to the extent that it is carried out, will take place alongside existing investment activity.
The strategy is presented against the backdrop of geopolitical developments and their impact on the global security and technology market, which are driving an increase in demand for innovative technological solutions and the integration of advanced technologies into existing security platforms, including through mergers and acquisitions. At the same time, there has been a significant increase in the volume of investments and activity in the Defense Tech sector worldwide. Thus, global defense budgets for 2026 are estimated at approximately $2.86 trillion, and venture capital investments in the sector amounted to approximately $49.9 billion in 2025.
Expanded Financial Results and Exits in 2025
In 2025, Elron recorded a net gain of approximately $9.3 million. The gain was impacted by several key events in the company's investment portfolio:
- A gain of approximately $14.1 million as a result of the sale of RDC's holdings in Cynerio to Axonius in August 2025.
- A gain of approximately $4.2 million as a result of an increase in the fair value of CartiHeal.
- A gain of approximately $1.7 million as a result of a change in the holding rate in Red Access following the completion of the investment agreement in January 2025.
- A gain of approximately $0.25 million as a result of an increase in the fair value of the investment in Notal Vision.
- On the other hand, a loss of approximately $0.65 million was recorded as a result of a decrease in the fair value of the investment in Zengo.
- In addition, Elron presented a decrease of approximately 20% in G&A expenses.
Investment Activity in 2025
During 2025, Elron made investments totaling approximately $14 million:
- Two new Defense-Tech and Deep-Tech investments totaling approximately $7 million, including CyberRidge and Addionics.
- Seven follow-on investments in portfolio companies totaling approximately $7 million.
- Additional investments through the CyberFuture cyber fund, including an investment in the cybersecurity company ZeroPort.
Exits and capital returns to shareholders
- In 2025, Elron completed three exits, with an aggregate value of over $600 million, which yielded approximately $40 million to Elron.
- Elron distributed approximately $15 million to its shareholders during the year through dividends and share repurchases, bringing the total amount distributed since November 2024 to $30 million.
About Elron Ventures:
Elron Ventures is a leading venture investment company focused on early-growth ventures in cybersecurity, deep tech, defense tech, and AI. Over the past decades, Elron has built a strong track record of global investments and successful M&A transactions, including four exits last year.
Elron invests through several investment vehicles, including CyberFuture - Elron's Cyber MicroFund, Rafael Development Corporation (RDC), and Evergreen Fund. These vehicles enable companies to validate their technologies, access new markets, scale up, and achieve growth.
Elron Ventures is controlled by Arieli Group, a U.S.-based, third-generation family office with extensive experience in private equity, venture capital, and global investments.
Elron's cyber portfolio includes innovative companies such as Addionics, Red Access, Tamnoon, Breeze Security, CyberRidge, Axonius, Wonder Robotics, Cyvers, and Raven.
Elron's CyberFuture MicroFund portfolio includes Astrix, Concentric AI, Aryon and ZeroPort.
Media Relations:
Maya Reitman Head of Marketing,
Elron Ventures [email protected]
+972 (3) 6075555
Investor Relations:
Lisya Bahar-Manoah
Managing Partner, Arieli Group & Chairperson of the Board, Elron Ventures
[email protected]
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SOURCE Elron Ventures
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