Elron Ventures announces strong 2025 results and outlines 2026 growth plan: For the first time since its inception, it will lead a Defense Tech M&A strategy through RDC, alongside exits of 1-3 companies per year from the existing portfolio

• 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.