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Israeli drone company Xtend has solidified its position in Israel’s booming defense industry sector, securing contracts with the IDF and the U.S. Army while supplying tactical and intelligence drones to Europe and the conflict-ridden Ukrainian front.
The company recently opened a new manufacturing facility in Tampa, Florida and announced the completion of a $70 million Series B funding round. The investment underscores Xtend’s growing influence in military applications, driven by its battle-proven technology.
The funding round began before the ongoing Gaza war but was briefly disrupted as Xtend shifted focus from civilian to military applications, where its drones demonstrated significant operational success. In May, the company raised $40 million from investors, including the defense-focused Chartered Group led by Eyal Agmoni and General-Tech, backed by Len Blavatnik.
An additional $30 million recently closed the round, led by Miami-based Aliya Capital Partners and Israel’s Protego Ventures, specializing in defense-tech. Union Tech Ventures, part of George Horesh’s Union Group, also participated alongside General-Tech and Chartered.
In an interview with Ynet, Xtend’s CEO and co-founder Aviv Shapira noted that the funding round could have been larger, as numerous defense-tech investment firms sought to join. The company’s strategic focus on Florida fostered ties with local senators, paving the way for Aliya Capital’s involvement.
The new Tampa factory, located near the U.S. Special Operations Command (SOCOM), a key Xtend client, was inaugurated with U.S. senators, congress members, local politicians and military and defense industry representatives in attendance.
The timing aligned with the July 4 passage of U.S. President Donald Trump’s $150 billion defense spending bill, dubbed the “One Big Beautiful Bill.” Shapira called the alignment deliberate, noting a new $10 million U.S. contract for loitering munitions that prompted the factory’s opening.
“We’re the only drone and robotics company in Florida, often called ‘Trump State’ because of his Mar-a-Lago residence,” he said. “We planned this move a year in advance and the timing was perfect.”
Xtend’s decision to establish operations in Florida, rather than traditional hubs like Washington or California, appears to be paying off, though Shapira acknowledged the company must now prove the strategy’s success. Beyond the military, Xtend is targeting the U.S. law enforcement market, which relies heavily on Chinese-made DJI drones. With thousands of law enforcement units across the U.S., Shapira sees an opportunity, noting, “Trump doesn’t like Chinese drones and we’re the solution.”
XTEND drone footage
Xtend’s drones include the Wolverine, a tactical model with advanced surveillance and a robotic arm for handling explosives; the Griffone, designed to intercept small and medium drones and the Xtender, a micro-tactical drone for navigating complex urban environments and infiltrating buildings, capable of operating up to 9,000 kilometers (5,592 miles) from its operator.
The core of Xtend’s technology is its XOS operating system, which integrates AR/VR and AI, allowing even untrained users to operate drones via VR goggles by setting targets and missions rather than manually piloting.
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Before its U.S. contract, Xtend secured a $20 million deal with Israel’s Defense Ministry and the IDF in early 2023, building on roughly 20 other contracts over the past three years. The U.S. Army contract involves supplying at least 1,000 drones, requiring U.S.-based production, which led Xtend to establish a subsidiary in Florida five years ago and build the new factory after winning the bid.
The facility now produces drones for sale in Europe and potentially Israel. Xtend outcompeted major U.S. firms like Anduril, with Shapira attributing the win to the company’s combat experience in Israel and Ukraine. “It’s not trivial to beat American companies but our battle-proven Israeli technology—tested in Gaza, Lebanon and Ukraine—made the difference,” he said.
Xtend’s drones played a prominent role in the Gaza war, notably in the elimination of Hamas leader Yahya Sinwar. Foreign reports suggest an Xtend drone tracked and hovered over Sinwar, footage of which gained global attention. The company’s drones conducted hundreds of missions, scanning buildings for terrorists, inspecting tunnels before soldiers entered and intercepting Hamas and Hezbollah drones.
Shapira lamented missed opportunities, noting that lives could be saved by deploying drones to clear buildings before troops entered. “It’s about educating the market,” he said. “Soldiers are used to running toward the hill with a rifle. It’s hard to shift to using VR goggles and robots.”
Founded in 2018, Xtend is headquartered in Tel Aviv and employs about 100 people, split evenly between Israel, the U.S. and Singapore. The company has doubled its sales annually, reaching tens of millions of dollars. With the new funding, Xtend plans to expand marketing, sales and technology development, aiming to open three more factories—two in Europe and one in Singapore—within the next year.
In 2023, Xtend acquired Singapore-based Performance Rotors, whose GPS-free indoor drone technology proved critical in Gaza. Under Xtend’s ownership, the subsidiary supplied drones to Ukraine, navigating Israel’s export restrictions. The Singapore operation will now serve as a hub for Asian markets, pending U.S. approval.
Following Aliya Capital’s investment, its CEO and co-founder, Ross Kestin, a dual Israeli-American citizen, joined Xtend’s board. “Xtend’s mission to develop intelligent robotic systems for high-risk critical missions aligns with our vision to invest in life-saving technologies,” Kestin said.
Lital Leshem, co-founder and managing partner of Protego Ventures, added, “Xtend is building a groundbreaking human-guided autonomy platform with immediate impact potential. In an era where defense innovation demands urgency, Xtend stands out as a leader.”