Esh-Tech, an Israeli defense tech startup, has secured $18 million in a funding round led by Kinetica Partners. This capital infusion moves the company from development toward large-scale production of its DroneLight counter-drone system. The announcement comes as Hezbollah’s escalating use of explosive and first-person-view (FPV) drones has emerged as one of the most urgent threats facing Israeli forces along the northern border.
Drones have accounted for a growing share of attacks on IDF troops in southern Lebanon since fighting resumed earlier this year. Israeli soldiers have in some cases resorted to improvised defenses, including fishing nets sourced from Galilee fishermen. The military works toward a more effective and universal countermeasure against these threats.
Hezbollah's Escalating Terror
Fiber-optic-guided FPV drones have proven resistant to jamming and electronic countermeasures. Defense officials have raised concerns Hezbollah may have extended the range of its FPV drones far enough to threaten larger northern cities in Israel. This represents a direct and expanding threat from Iran's proxy network.
The funding round for Esh-Tech was backed by Mahari, Renaton Capital, Q Fund, 2i Ventures, Hinkley, FFG, several angel backers, and the Israel Innovation Authority. The Omer-based company develops laser-based defense technologies designed for scalable and rapid response against aerial threats. Its flagship DroneLight system uses pulsed-laser interception to provide a cost-effective counter-UAS capability.
Esh-Tech says the capital will support the establishment of a domestic production line, the finalization of development work, expanded hiring, and the scaling of international sales and delivery operations. The company’s CEO, Erez Riahi, stated the company is “fully focused on bringing DroneLight into operational service and delivering meaningful impact where it matters most.” The system has carried out “successful operational testing under real-world conditions.”
Securing Israel's Borders
Esh-Tech has also previously said its DroneLight is priced approximately 25% lower than legacy continuous-wave laser systems. The technology is far more effective. The Defense Ministry’s Directorate of Defense, Research and Development, Mafat, has backed much of that assessment. Several months ago, Esh-Tech was selected as a breakthrough company in the Mafat for Startups program, which means it will receive up to NIS 10 million in support for its product.
Some Israeli defense analysts have pointed to the country’s reliance on US-supplied weapons as a long-term vulnerability. They argue that a domestic industry capable of fielding systems like DroneLight reduces exposure to shifts in Washington’s posture. Esh-Tech has been at the forefront of that shift since its founding six years ago.
The company, based near Beersheba, employs around 20 high-caliber specialists. These specialists have developed systems that emit hundreds of coin-sized beams at a target. Once a beam registers a hit, additional beams are directed at the same point, and the combined energy brings the target down. The laser uses pulse technology, allowing it to score a focused hit in a hundredth of a second. With an output of four kilowatts, it can destroy a target at a range of up to one kilometer.
Strategic Independence for Self-Defense
Esh-Tech expects to present its first operational system by September. The laser’s low power draw keeps the system compact enough to mount on armored vehicles. The company says it is already in talks with manufacturers in Israel and abroad, with contracts worth millions from European buyers already in hand. A lighter, Jeep-mounted version is in development. For now, the company says its focus remains at home, on a system that can substantively meet the threats posed by Hezbollah on Israel’s northern border.