Inside Kela: An Israeli Defense-Tech Startup
The buzz around the Israeli startup Kela has been persistent for months. The company, which emerged from a covert project by senior figures in the Israeli high-tech industry, has gained further attention due to its unique funding and ambitious goals. Kela is developing AI-driven command systems aimed at transforming modern warfare. Backed by top-tier investors and elite military talent, Kela is positioned to make a significant impact on the defense-tech sector.
Instead of local venture capital, Kela received its initial investment of $11 million from the American Sequoia fund, followed by a second funding round of $28 million led by the American Lux fund. This caught the attention of the investment arm of the CIA, In-Q-Tel, which also invested in Kela after a partner met with the company’s founders during the war.
On Monday, details about Kela were released alongside a Wall Street Journal article about the Israeli defense-tech sector, but much remains undisclosed. It’s unclear whether they have any customers. One of the founders and president of Kela, Hamutal Meridor, the daughter of Dan and Liora Meridor and the sister of Shaul Meridor, who previously headed the Finance Ministry’s Budgets Department, explained the immediate necessity for Kela’s product: “The need for the product Kela is developing arose immediately after October 7. We recruited the country’s top talent, eager to contribute to security technologies.”
All of Kela’s employees are based in Israel. Meridor, a graduate of Unit 8200, managed Palantir’s Israeli operations previously. Kela’s CEO is Alon Dror who served for about a decade in the defense sector. Other co-founders include Jason Manne and Omer Bar-Ilan.
Despite Kela’s short existence, the company already has a working product. According to Meridor, their open platform allows Western militaries to integrate innovative commercial technologies into military systems. “The system is designed for soldiers in the field while also supporting command-and-control management from headquarters. Considering Israel’s current security situation, it’s clear that none of our borders are truly secure. Our mission goes beyond the business aspect—it’s also about Zionism.”
Kela’s architecture allows militaries to integrate technologies securely. Its AI capabilities help with data analysis and generating insights for commanders, enabling rapid responses to threats.
Kela has solidified its position in Israel’s booming defense-tech sector, which has gained traction since the war. The conflict in Ukraine and statements about the U.S. potentially abandoning Ukraine, have boosted interest in such technologies. The events of Oct. 7 highlighted the ability of guerrilla groups to exploit commercial technologies like sensors and drones, challenging conventional military strategies. Western militaries are now looking for solutions that provide faster adoption and deployment of new technologies.
Sequoia stated that Kela’s goal is to “leverage Israel’s unique cadre of ‘technowarriors’ to help defend the Western world order.” The company is initially focused on enhancing Israel’s internal defense capabilities with a long-term vision of being a global hub for security technologies for NATO and the United States. Partners from Sequoia met with Meridor and Dror in April and concluded with an $11 million investment, demonstrating their confidence in the project.
