An Israeli defense technology startup, Esh-Tech, has secured $18 million in a funding round, pushing its DroneLight counter-drone system toward large-scale production. This significant capital influx arrives as Hezbollah's escalating use of explosive and first-person-view drones presents urgent threats to Israeli forces positioned along the northern border.
The funding round was led by Kinetica Partners, with additional backing from Mahari, Renaton Capital, Q Fund, 2i Ventures, Hinkley, FFG, several angel investors, and the Israel Innovation Authority. This financial support aims to establish a domestic production line, finalize development work, expand hiring, and scale international sales and delivery operations for the Omer-based company.
Drones have accounted for a growing share of attacks on Israeli military troops in southern Lebanon since fighting resumed earlier this year. Israeli soldiers have resorted to improvised defenses, including fishing nets sourced from Galilee fishermen, while the military seeks a more effective and universal countermeasure. Fiber-optic-guided FPV drones have proven resistant to jamming and electronic countermeasures.
Defense officials have raised concerns that Hezbollah may have extended the range of their FPV drones to threaten larger northern cities within Israel. Esh-Tech's laser-based DroneLight system is designed for scalable and rapid response against aerial threats, using pulsed-laser interception.
Bolstering Military Control
Esh-Tech, based near Beersheba, employs around 20 specialists who have developed systems emitting hundreds of coin-sized beams at a target. Once a beam registers a hit, additional beams are directed to the same point, combining energy to bring the target down. The company expects to present its first operational system by September, with the laser using pulse technology to score a focused hit in a hundredth of a second and destroy targets up to one kilometer away with an output of four kilowatts.
The Defense Ministry’s Directorate of Defense, Research and Development, Mafat, has supported much of this assessment. Esh-Tech was selected as a breakthrough company in the Mafat for Startups program several months ago, securing up to NIS 10 million in government support for its product. This direct state backing underscores the integration of private industry into the broader military apparatus.
U.S. Complicity and Domestic Production
The development of domestic defense systems like DroneLight is framed by some Israeli defense analysts as a strategy to reduce reliance on US-supplied weapons. These analysts argue that such a domestic industry lessens exposure to potential shifts in Washington’s political posture, implicitly acknowledging the United States' role as the primary military guarantor of Israeli operations. Esh-Tech has been at the forefront of this shift since its founding six years ago.
Esh-Tech's CEO, Erez Riahi, stated that the company is “fully focused on bringing DroneLight into operational service and delivering meaningful impact where it matters most.” The company claims its DroneLight is priced approximately 25% lower than legacy continuous-wave laser systems and offers superior effectiveness.
Expanding the Reach of Israeli Military Technology
Esh-Tech's ambitions extend beyond the immediate conflict zones. The laser’s low power draw keeps the system compact enough for mounting on armored vehicles. The company is already in talks with manufacturers in Israel and abroad, having secured contracts worth millions from European buyers, with a lighter, Jeep-mounted version currently in development.
While the company states its immediate focus remains on meeting threats posed by Hezbollah on Israel’s northern border, the pursuit of international sales and diverse deployment options highlights the broader commercialization of military technology developed within the context of ongoing conflict and occupation.