NATO Innovation Fund closes €1B flagship fund and prepares to invest

Twenty-three NATO Allies have officially become Limited Partners of the NATO Innovation Fund, focused on the dual-use deep tech sector. The Fund prepares to make its initial investments later this year, according to NATO’s official announcement.

• The NATO Innovation Fund is the world’s first multi-sovereign venture capital fund that will invest in innovation technological startups to address critical defense and security challenges.
• The Fund’s Limited Partners include 23 NATO Allies: Belgium, Bulgaria, Czechia, Denmark, Estonia, Finland, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Spain, Türkiye, United Kingdom.
• Sweden also showed desire to join the NIF, and its participation will take effect upon its accession to the North Atlantic Treaty.

“As a member of NATO, Sweden will contribute to the strength of the Alliance, not only through our geostrategic location and military capabilities, but also through a vibrant security and defense industry that promotes innovation and development of cutting-edge technology. This is further enabled through participation in the NATO Innovation Fund,”

Minister for Defence of Sweden, Pål Jonson commented.

• The Fund will make direct investments into startups located in these countries, and indirect investments into deep tech funds with a trans-Atlantic impact. NIF adds that it aims to secure an enduring future for the Alliance’s 1 billion citizens. 
• In July this year, Polish Development Fund also joined the NATO Innovation Fund, investing €42 million through its investment arm PFR Ventures. The investment was made in consultation with the Chancellery of the Prime Minister and the Ministry of National Defence.