Additionally, the Fund is directing investments towards strengthening deeptech hubs in regions with high demand for early-stage startup capital, thereby fostering the Alliance’s technological sovereignty.

To facilitate the integration of these cutting-edge technologies, the NATO Innovation Fund collaborates closely with Allied governments. This partnership ensures that portfolio companies gain valuable access to defence sectors, broader government frameworks, and commercial market opportunities, therefore accelerating the adoption and impact of their innovations.

“Enabling capital and support for strategic technologies is key to securing a safe and prosperous future for the Alliance’s 1 billion citizens. Today, we are proud to share that we have invested in innovative solutions that can help address some of our greatest challenges and boost growth, strengthening the defence, security, and resilience of our nations for generations to come,” commented Andrea Traversone, Managing Partner, NATO Innovation Fund.

“This is a tremendous milestone for the NATO Innovation Fund,” said David van Weel, Assistant Secretary General for Innovation, Hybrid and Cyber. “With these investments, the Fund is now starting to make a tangible difference in our innovation ecosystems, providing growth opportunities to the most promising dual-use and defence companies developing solutions to maintain the Alliance’s technological edge.”

“Congratulations to NIF’s investment team on reaching this significant milestone,” said Dr Klaus Hommels, Chair, NATO Innovation Fund. “This initial portfolio of investments exemplifies NIF’s mission to advance defence, security and resilience and promote the development of dual-use ecosystems across the NATO Alliance.”

The Fund's investments aim to dismantle growth barriers for emerging technologies across Europe and the UK. By enhancing collective AI capabilities and pushing the boundaries in the manufacturing of novel materials, these investments will drive forward technological progress and innovation.

The Fund’s direct investments include:

• ARX Robotics, a manufacturer of scalable robotic systems for mass deployment in defence, commercial, and humanitarian applications to future-proof armed forces, and increase the safety and efficiency of workforces.
• Fractile, an AI company that is developing transformative computing technology to enhance collective AI capabilities by enabling the largest and most capable neural networks of today and tomorrow to run faster, more efficiently, and sustainably.
• iCOMAT, an advanced composite manufacturing company that delivers lighter, stronger, and more sustainable structures for aerospace and automotive vehicles faster and more cost-effectively.
• Space Forge, a company that utilises the space environment to manufacture advanced semiconductor materials for critical infrastructure, ensuring more powerful and resilient capabilities across telecommunications, aerospace, and quantum.

“The NATO Innovation Fund’s support for Space Forge’s ambition is a testament to what we’re building. Occupying the domains of semiconductor manufacturing and spacecraft production is complex. This investment enables Space Forge to develop the production class version of its ForgeStar architecture and provide a critical advantage in key technologies with its advanced semiconductor materials. It is a privilege to serve the NATO Alliance,” said Joshua Western, CEO and Co-Founder of Space Forge.

Fund investments to power the Alliance’s startup ecosystem

The NATO Innovation Fund is supporting the growth of innovators at every stage by investing in venture capital fund managers who specialise in early-stage deep tech, with a focus on civilian, defence, security, and resilience markets. This strategic backing aims to bolster regions with high demand for funding, nurturing the next generation of deep tech unicorns.

The Fund’s focus includes ecosystems historically challenged in accessing capital, such as Southern and Eastern Europe, alongside rapidly growing deep tech hubs like the Nordics. By supporting funds with a diverse range of deep tech expertise, the NATO Innovation Fund aims to accelerate advancements in various domains, including spacetech, quantum cryptography, and AI. Notable investments include:

• Alpine Space Ventures: An early-stage fund with over 50 years of industry experience, concentrating on space sector investments. This fund aims to empower a select portfolio of startups to deliver crucial space-enabled capabilities.
• OTB Ventures: A deeptech fund from Central Europe, focusing on early growth (Seed and Series A) investments in spacetech, enterprise automation and AI, cybersecurity, and fintech infrastructure.
• Join Capital: Based in Berlin, this early-stage venture capital fund targets deep tech investments across industrial and enterprise tech.
• Vsquared Ventures: Specialising in early-stage deeptech companies, Vsquared Ventures invests in groundbreaking technologies addressing significant societal challenges. Their focus areas include AI and next-gen software, energy transition, new computing and sensing, new space, robotics and manufacturing, and tech-bio.

Through these investments, the NATO Innovation Fund aims to eliminate growth barriers and foster technological advancements across Europe and the UK.

“Europe’s deeptech sector, powered by a rich talent pool, is poised to tackle global challenges through advanced technologies. Investing in deeptech requires time and skills but brings tremendous opportunities. The founding of the NATO Innovation Fund (NIF) underscores the vital role of these investments and brings the know-how to take them to new markets and use cases,” explained Adam Niewinski, Co-Founder and Managing Partner, OTB Ventures.

Supported by 24 NATO Allies, the NATO Innovation Fund is committed to financing innovators across a spectrum of cutting-edge technology sectors. These sectors include energy, quantum computing, artificial intelligence, autonomy, novel materials, space, biotechnology, hypersonic systems, and next-generation communications.

With its inaugural portfolio of investments, the Fund is poised to offer deep tech entrepreneurs robust support for up to 15 years. This backing ensures they have the conviction and agility required to commercialise and scale their groundbreaking solutions effectively.