The NATO Innovation Fund, launched last year, is the world’s first multilateral venture capital fund, backed by 24 of NATO’s 32 member states. While there are limits on direct investment in weapons technology, it is investing in emerging technologies that NATO hopes will strengthen its future defenses and resilience.
The fund aims to leverage connections within the alliance to help make investments: “Most of the time, early stage companies are completely overwhelmed and have no idea how to engage. [government and defense] “We are uniquely positioned to support our portfolio companies through their growth and through our partnerships with private and government entities,” O’Connor said.
The NIF also seeks to help Western deep tech startups grow without relying on Beijing for funding, NATO officials said last year, noting that a shortage of venture capital in Europe has forced startups to look elsewhere. “When European deep tech startups reach the growth stage, more than half are primarily owned by companies outside Europe,” said Kelly Chen, a partner at the fund. “That’s certainly a dynamic we’re fighting against.”
Former NATO Deputy Secretary-General Giedrimas Jeglinskas told Semaphore that the fund’s success would ultimately depend on whether its investments “are translated into improved defense capabilities for allies.” “That’s probably a decade away,” Jeglinskas said, adding that “we’re on track to do that.”
