Israeli defense technology startup Commcrete has raised $29 million to expand development and marketing of its lightweight tactical satellite communication systems, the company announced Tuesday.
The funding includes an $8 million seed round led by Mobileye CEO Amnon Shashua, along with Q Fund and private investors, and a $21 million Series A round led by Greenfield Partners, with participation from Redseed Ventures and existing backers.
Commcrete, founded in 2022 by three veterans of Unit 81—an elite Israeli military intelligence unit—develops compact communication devices that enable encrypted voice and data transmission via satellite from virtually any location on Earth. The company says its devices, weighing just 150 grams (5.3 ounces), are the smallest and most effective tactical satellite communication systems currently available.
“This is a tactical satellite communication system that breaks all the rules,” said CEO Itzik Daniel Michaeli. “It can connect to geostationary satellites 36,000 kilometers away, without a line of sight, in all weather conditions—urban, jungle, desert, you name it.”
Michaeli co-founded the company with CTO Josh (Shuki) Yedidya, a lifetime achievement award recipient from the IDF chief of staff, and COO Michael (Micho) Mor, a former project manager in Unit 81.
Unlike consumer-focused satellite internet systems such as Elon Musk’s Starlink, Commcrete’s devices offer narrowband communication, including voice calls, location tracking, SOS alerts, and encrypted file transfers. Communications occur directly between Commcrete devices via satellite, without relying on commercial satellite services.
The company says its systems are already in use by military and security clients across Europe, the United States, and East Asia. According to estimates, the Israel Defense Forces is also among its customers. Additional users include intelligence agencies, emergency responders, and civilian rescue units operating in remote or hazardous environments.
Commcrete’s technology has drawn interest in part due to its minimal size and ease of deployment. “There’s nothing comparable in the market,” Michaeli said. “Competing devices are larger, have bulky antennas, and can’t operate without a direct line to the satellite.”
Demonstrations have played a key role in closing sales. “Within 20 minutes of seeing the system in action, potential clients understand its value. Our demo-to-sale conversion rate is 82%,” Michaeli said.
Shashua, a prominent figure in Israel’s tech ecosystem, invested in Commcrete after receiving a video of the system in action from a mutual acquaintance. “Two days later we were in his office,” Michaeli said. “After 20 minutes of discussion, he made us an offer. The deal closed in three weeks.”
The company plans to enter the civilian telecom market but says such a move will require a strong commercial partner, such as a major domestic or international telecom operator. “All the big players have already visited us,” Michaeli said. “They went home to rethink their strategy.”
Commcrete is also developing artificial intelligence capabilities expected to roll out within the next 18 months. “We’re working on things that are hard to even imagine right now,” Michaeli said.
While not currently competing with broadband satellite systems, Michaeli believes Commcrete’s tactical segment could one day outperform initiatives by tech giants. “We’re not there yet,” he said. “But we know we can do better than Starlink Gen 2, Amazon’s satellite plans, or Apple’s Globalstar acquisition. Right now, we’re focused on the tactical market.”
Asked whether Commcrete is open to acquisition offers, Michaeli said the company is exploring strategic partnerships. “We believe what we’ve developed gives a dramatic advantage to whoever chooses to work with us,” he said.