(Bloomberg) -- Israel Aerospace Industries Ltd., one of the country's largest defense companies, is looking to raise about $200 million to fund startups that will adapt some of its military technology for the civilian market.
The firm is seeking an initial $30 million from an investor with experience in early-stage tech investments, Hezi Israel, the executive vice president of corporate development at IAI, said in an interview. A joint venture will be formed to seed the companies, he said.
After two to three years, IAI then plans to raise as much as $200 million to accelerate the creation of new businesses, the executive said.
Israel has a thriving tech industry whose success can be traced back to military and state-owned defense companies, which churn out hundreds of engineers each year that use their training to build businesses across an array of industries.
“When you're talking about guarding the sea and the air -- we're the best and we can challenge everyone,” Israel said. “The other areas are not our expertise. So we're ready to open the backyard.”
IAI, which posted revenue of $4.1 billion in 2019, focuses on developing satellites, radar systems and drones for military use. The company has signed a couple of partnerships over the past 18 months in fields such as aviation and agricultural tech.
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