Israeli investment firm Elron Ventures on Wednesday reported 2025 revenue of $40 million from realizations of holdings and net profit of $9.3 million, while also announcing an expansion of its longstanding partnership with RDC, its joint venture with state-owned defense contractor Rafael Advanced Defense Systems, to include evaluating mergers and acquisitions (M&As).
The expanded cooperation is intended to let Elron and RDC pursue control positions in target companies, particularly in Defense Tech. The strategy was approved by the boards of Elron and RDC and remains subject to approval by Rafael’s board, as well as any required regulatory clearances tied to Rafael.
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Lisya Bahar Manoah, chair of Elron Ventures and managing partner at the Arieli Group, and Yaniv Schneider, CEO of Elron Ventures
(Photo: Courtesy of Elron Ventures)
Elron said the move is designed to add a new growth engine in defense technology through the acquisition of tech companies. The company said it believes the planned activity, alongside its existing investment operations, could generate significant additional value for the company and its shareholders.
As part of the strategy, Elron said it will seek out early-stage target companies for acquisition and possible long-term holding, while developing their operations with the goal of generating both capital appreciation and recurring cash flow. To implement the strategy, RDC and/or Elron will examine the need for additional financing. The company said any such activity would be carried out alongside its current investment business.
In its financial report, Elron for the first time provided guidance, saying it expects one to three exits involving portfolio companies in 2026, consistent with what it said in an investor presentation last month. The company said those exits could take the form of full company sales or secondary transactions.
Elron also reported a new investment in 2026 in Raven, a cyber company developing a runtime application protection platform designed to prevent attacks in real time.
Raven completed a financing round that included a Seed round led by Norwest and a Post-Seed round led by Elron Ventures, bringing total funding to $20 million. Other investors included UpWest, RedSeed, SentinelOne, Jibe Ventures and Elron’s CyberFuture micro-fund.
The proceeds are intended to accelerate product development, expand the company’s go-to-market activity in the United States and increase headcount.
Elron said its 2025 net profit was driven by several key events in its portfolio, including a gain of about $14.1 million from RDC’s sale of its holdings in Cynerio to Axonius in August 2025, a gain of about $4.2 million from an increase in the fair value of CartiHeal, and a gain of about $1.7 million tied to a change in its holding rate in Red Access following the completion of an investment agreement in January 2025.
The company also recorded a gain of about $250,000 from an increase in the fair value of its investment in Notal Vision. Offsetting those gains, Elron posted a loss of about $650,000 due to a decline in the fair value of its investment in Zengo.
During 2025, Elron completed three realizations with an aggregate value of more than $600 million at the portfolio-company level, generating about $40 million for Elron.
The company returned about $15 million to shareholders during the year through dividends and stock buybacks, bringing the total amount distributed since November 2024 to $30 million.