Israeli drone manufacturer Heven AeroTech has become the country’s first defense-tech unicorn after being now valued at over $1 billion following significant investments from the American quantum computing company IonQ.
The valuation and the round in which the startup raised $100 million were revealed in a LinkedIn post by investor Lorne Abony of Texas Venture Partners.
Abony described Heven as “Israel’s first defense tech unicorn.”
“This is an amazing milestone for Heven AeroTech and Texas Venture Partners. We were early investors in Heven with our early stage investment of $4.5 million. I am also proud to be a Board Member at Heven,” he wrote.
Heven AeroTech was founded in 2019 by Bentzion Levinson. Part of the company’s achievements includes the development of hydrogen-powered drones capable of long-range flight and high payload capacities. The company’s flagship line are stealth hydrogen powered drones that have an endurance of 1,000 kms and soon expected to expand to 2,000 kms.
The company also has drones that can parachute blood into battlefields and save lives.
From Gaza 2018 to Gaza 2023
Speaking with Defense & Tech by The Jerusalem Post at the sidelines of International DefenseTech Summit led by the IMOD’s DDR&D, in collaboration with the Blavatnik Cyber Research Center at Tel Aviv University, Levinson said the idea for the company came as saw the Start Up Nation struggling to intercept and neutralize the fire kites and balloons launched by Hamas from the Gaza Strip in 2018.
“My mind was going crazy that terrorists are sending kites and this high tech nation couldn’t handle it,” he said, adding that he “understood that drones with cameras are good, but the moment drones become flying robots and can do missions, everything changes.”
Levinson told D&T that took that experience, some tuition money, found people to work with and founded his company in 2019. A year later, during the coronavirus pandemic his drones were delivering COVID tests in Israeli hospitals.
Then came the war in Ukraine, followed by the Hamas invasion and massacre of October 7th. Levinson was called up to be up on Israel’s northern border before also spending time in Gaza.
“Do you know what it’s like to be on the border and be blind? The value of having a drone fly even one or two kms, that’s the future and we need to get it right, as a nation and as a company,” Levinson told D&T. “When you have the urgency, it’s easier to wrap everyone around an idea. I’ve always believed in the importance and potential of the company and after experiencing this full time, getting what we are doing right is 10x more important.”
Israeli drone companies make waves in defense industry
IonQ confirmed in an announcement last week that it had signed a cooperation agreement with Heven to integrate quantum-based sensing, communication, navigation, and security capabilities into its drone systems.
“Five years ago people laughed about hydrogen drones. We now have a separate business line for hydrogen drones. Now that we can fly 1,000 km and more into contested environments, what do we need to operate and communicate there? We started realizing that we need the most advanced technology powering them. IonQ has quantum navigation, communication and sensors and that’s what we are focused on. When we see millions of drones flying in the next few years, quantum technology will power a lot of that,” Levinson said.
With the advanced technologies, the companies hope to improve drones' accuracy and stability in environments saturated with electronic interference.
As part of the agreement, senior officials at IonQ will join Heven’s board of directors, suggesting that more than just a financial investment is involved in the new deal.
While at the beginning of his startup journey Levinson was told “ok, cool tech, that’s it”- with the insight given by customers along with support by MAFAT and international investors, six years later his company is working with the IDF, US Department of Defense and has become the first defense-tech unicorn.
But for Levison, it’s only the beginning.
“The more we grow, the more we have to grow. It’s an important milestone, but it’s only the first 1% of the journey. We believe it will scale out and change the world,” he said.