The unique relations between the Israeli-armed forces and the local hi-tech industry have been identified as a strong explanatory variable for the Israeli hi-tech boom. This article highlights the role of the military as a socialization institution in those relations. We identify how the accumulation of “military capital” during military in service contributes to soldiers as veterans and employees in the hi-tech sector. Military service brings with it professional training, social ties, and social codes that influence the composition of the hi-tech workforce and hi-tech industry’s organizational and functional culture. Examination of Israeli hi-tech workers’ profiles reveals not only a very high proportion of military capital amongst the employees but also an institutional preference for those who possess it.