Initial capital commitment of up to $300 million expected to be deployed over approximately three years and funded equally by Elron and Rafael

TEL AVIV, Israel, June 1, 2026 /PRNewswire/ -- Elron Ventures Ltd. (TASE: ELRN), a publicly traded investment company focused on early-growth investments in Defense Tech, Deep Tech, Cybersecurity and AI, announced today a capital commitment of up to $300 million for Rafael Development Corporation Ltd. (RDC), the joint venture of Elron and Rafael Advanced Defense Systems Ltd. (Rafael), for the purpose of executing the mergers and acquisitions strategy announced by the Company in March 2026. The investment plan remains subject to approval by Rafael's Board of Directors.

Under the investment plan, Elron and Rafael are equally funding a commitment of up to $300 million over a period of approximately three years, subject to the required approvals. The expected initial allocation of $100 million, subject to budget approval, reflects the commitment of Elron and Rafael to actively support the long-term development and growth of the strategy. The M&A strategy is focused on acquiring controlling stakes in dual-use technology companies serving both defense and civilian markets, alongside continued investment activity in early-growth companies across Cybersecurity, Deep Tech, Defense Tech and AI.

The Company believes that evolving geopolitical developments, rising defense budgets and growing demand for advanced technologies with both defense and civilian applications are accelerating the need for independent technology companies with global growth potential. In this context, the partnership with Rafael through RDC provides Elron with unique added value, including access to technologies, engineering and operational expertise, validation capabilities and a deep understanding of market needs, supporting company development, commercialization and growth.

The mergers and acquisitions 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, Elron and Rafael are expected to leverage their long-standing partnership, which combines Rafael's technological capabilities, engineering expertise and deep understanding of operational needs and target markets with Elron's investment capabilities, company-building expertise and growth leadership. The Company notes that the majority of the approved activity is intended for dual-use applications and the commercialization of technologies for civilian markets. 

Through its long-standing partnership with Rafael, Elron, through RDC, benefits from unique access to technologies developed within Rafael, as well as the opportunity to evaluate their commercialization and integration into civilian markets. In addition, RDC is engaged in establishing ventures and investing in technology companies, including ventures with potential synergies based on the expertise of Rafael experts, advanced technologies and the commercialization of technologies originally developed for defense applications into civilian markets.

As part of the strategy, Elron and Rafael are expected to leverage their capabilities, which combines Rafael's technological capabilities, engineering expertise and deep understanding of operational needs and target markets with Elron's investment capabilities, company-building expertise and growth leadership. The Company notes that the majority of the approved activity is intended for dual-use applications and the commercialization of technologies for civilian markets.

Lisya Bahar Manoah, Chairperson of Elron 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 Shechter-Nakash, Co-CEO of RDC. The longstanding partnership between Elron and Rafael combines technological leadership with operational and investment expertise. Expanding RDC's activities into the M&A arena is a natural next step that we believe can create significant long-term value for shareholders while supporting the growth of leading companies across both defense and civilian markets."

"In recent years, we have witnessed a significant acceleration in global investments across the Defense Tech and Dual-Use sectors, alongside growing demand for advanced technologies originating in the civilian market," said Yaniv Shnieder, CEO of Elron Ventures and Co-CEO of RDC. "The combination of Rafael's exceptional capabilities in technology and operations with Elron's ability to identify, invest in, and grow promising companies creates a unique model for building impactful companies across defense and civilian markets, alongside continued investment activity in Cybersecurity, Deep Tech, Defense Tech, and AI. We are building pipelines and actively identifying opportunities."

About Elron Ventures

Elron Ventures Ltd. ("Elron") is a technology investment firm focused on acquiring, investing in, and building companies across Defense Tech, Deep Tech, Cybersecurity, and AI. The Company operates through several investment vehicles, including RDC, CyberFuture, and Evergreen. In collaboration with Rafael Advanced Defense Systems, RDC is focused on acquisitions of early-stage dual-use and defense tech companies. Elron works closely with entrepreneurs and management teams to support the development and scaling of businesses addressing large and evolving markets, with a focus on infrastructure, mission-critical technologies, and long-term value creation. Elron is controlled by Arieli Group, a U.S.-based investment firm.

For more information, please visit www.elronventures.com.

Forward-Looking Statements

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 Elron's investment strategy and future positioning. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Factors that may affect such outcomes include changes in market conditions, technological developments, competitive dynamics, portfolio company performance, and other risks beyond the Company's control. Elron undertakes no obligation to update or revise any forward-looking statements, except as required by law.

Contact:

Investor Relations
Lisya Bahar-Manoah, Managing Partner, Arieli Group
Chairperson of the Board, Elron Ventures
+972-3-607-5555; ir@elron.com 

Media Relations
Maya Reitman, Head of Marketing
Elron Ventures
+972-3-607-5555; pr@elron.com 

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SOURCE Elron Ventures