Backed by CIA, defense startup emerges with tech platform for modern battlefield
In response to October 7, Kela raises $39 million to develop a platform for the integration of commercial technologies, such as AI models or sensors, into military systems
Sharon Wrobel is a tech reporter for The Times of Israel
Israeli defense tech startup Kela Technologies — founded in the wake of the October 7, 2023 onslaught — is coming out of stealth to equip Western militaries with a software platform designed to facilitate the adoption and integration of commercial technologies into existing military systems that are needed for the modern warfare battlefield.
The Tel Aviv-based startup’s name means sling in Hebrew, inspired by David’s sling in the famous biblical David and Goliath story, where a cheap weapon is used by someone small to defeat someone large.
“On October 7, we saw that despite having fewer resources, more constraints, and lower technological capabilities, Hamas was still able to inflict significant damage using inexpensive methods,” Kela co-founder Hamutal Meridor told The Times of Israel. “The face of war has changed, and we must adapt with it.”
“The only way forward is to break away from old thinking and embrace these new technologies,” added Meridor, the daughter of former minister Dan Meridor.
One of the major lessons learned from current conflicts around the world — whether it is the war in Ukraine or Israel’s war with the Hamas terror group — is that armies, including the IDF, are not adequately prepared for full modern warfare and need to integrate new sensors, drones, and artificial-intelligence applications into their military systems.
Despite having one of the world’s best defenses against missiles and rockets, Israel has struggled to deal with emerging threats, such as commercial drones throughout the war with Hamas and Iran-backed Hezbollah in the north, as rapid advancement has made them faster and cheaper. It was Hamas drones that first crossed from Gaza into Israel on the morning of October 7, 2023, to disable electronic monitoring systems and pave the way for the massive cross-border onslaught in which terrorists brutally killed some 1,200 people, mostly civilians, and kidnapped 251 to the Gaza Strip.
In response to the October 7 attack, Kela is developing an open software platform for Western armies to seemingly adopt and integrate fast-evolving commercial and civilian technologies, including communication devices such as tablets, phones, night-vision goggles, sensors, radars, or encryption devices, into existing military applications and systems.
Kela was founded in July 2024 by Meridor, who also serves as president; alongside Alon Dror, CEO; serial entrepreneur and engineer Omer Bar-Ilan; and aeronautical engineer Jason Manne. All four have years of experience in national security and technology.
Meridor is a veteran of the elite IDF intelligence Unit 8200, a former partner at the Israeli tech fund, Vintage Investment Partners, and previously served as the Israel head of US data analysis company Palantir. Dror graduated from the Israeli army’s prestigious Talpiot training program, and then served in Israel’s defense establishment for over a decade — first as a tank commander and then at Mafat (Israel’s Directorate of Defense R&D), where he won the Israel Defense Prize.
Manne has 10 years of experience in weapons development for the Israeli Air Force, and Bar-Ilan is the former head of algorithm development at Rafael Advanced Defense Systems.
“The October 7 events underscored the need for fresh thinking and advanced solutions on the battlefield,” said Dror, drawing from his combat experience in reserve duty. “As combat challenges become increasingly complex, Western militaries require fast, flexible and innovative responses — not ones dependent on rigid systems or exclusive suppliers.”
The Tel Aviv-based startup has won the backing of two US large venture capital funds, Sequoia Capital and Lux Capital, as well as IQT, the US Central Intelligence Agency’s investment arm, following two consecutive funding rounds.
Kela raised $11 million from a seed funding round, led by Sequoia, and $28 million from a Series A round led by Lux Capital, which was joined by IQT and other angel investors. To date, the startup has raised a total of $39 million in capital and employs 25 people at its Tel Aviv headquarters.
“The early support from leading US venture firms Sequoia and Lux is not just a vote of confidence — it is proof of the significance of our mission,” said Meridor. “Our partners’ expertise, reputation, and networks will serve as critical force multipliers in our journey — from proving the platform in Israel to scaling it across Western defense markets.”
After testing and trialing the software system in Israel, Kela plans to use the raised funds to apply and compete for defense contracts in the US and Western militaries in Europe and expand the platform’s deployment.
“The founding team of Kela embodies the very best of Israel’s defense tech ecosystem: from Iron Dome architects and Talpiot graduates to Unit 8200 veterans,” said Sequoia general partner David Kahn. “Their ability to deliver mission-critical solutions in days instead of months is already redefining Israel’s defense capabilities.”
“Kela’s impact will extend far beyond Israel, fundamentally strengthening the defensive capabilities of the entire Western alliance,” Kahn remarked.
The Times of Israel Community.