NATO Innovation Fund announces its first investments from €1B Fund to advance these sectors

The NATO Innovation Fund (NIF), an independent venture capital firm backed by 23 NATO Allies, on Tuesday, announced its first deep tech investments from the €1B Fund.

This investment aims to boost defense, security, and resilience by transforming manufacturing, improving air travel, advancing AI, and enabling autonomous robotic solutions.

“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,” says Andrea Traversone, Managing Partner, NATO Innovation Fund

Direct investments in emerging deep-tech startups

The Fund’s direct investments include:

• ARX Robotics is a manufacturer of scalable robotic systems for mass deployment in defense, commercial, and humanitarian applications.
• Fractile 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 is an advanced composite manufacturing company that produces lighter, stronger, and more sustainable structures for aerospace and automotive vehicles, all while being fast and cost-effective.
• Space Forge is a company that uses the space environment to manufacture advanced semiconductor materials for critical infrastructure, ensuring more powerful and resilient capabilities across telecommunications, aerospace, and quantum.

“Congratulations to NIF’s investment team on reaching this significant milestone,” says Dr. Klaus Hommels, Chair of the 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.”

Supports venture capital fund managers

The NATO Innovation Fund supports venture capital fund managers investing in early-stage deep tech with a focus on civilian, defense, security, and resilience markets.

This backing helps expand capacity in regions with high funding demand, such as Southern and Eastern Europe and grows deep tech startup ecosystems like the Nordics.

The fund aims to assist expertise and interest in a wide range of deep tech solutions, from space tech to quantum cryptography and AI.

• Alpine Space Ventures is an early-stage fund that invests in the space sector, drawing from over 50 years of industry experience. The fund has a focused portfolio and aims to support select startups in delivering important space-enabled capabilities.
• OTB Ventures is an early growth (Seed and Series A) deep tech fund based in Central Europe, with a focus on investing in spacetech, enterprise automation & AI, cybersecurity, and fintech infrastructure.
• Join Capital is a Berlin-based early-stage venture capital fund that concentrates on deep tech investments in industrial and enterprise tech.
• Vsquared Ventures invests in early-stage deep tech companies that are developing groundbreaking technologies to address some of society’s most pressing challenges, with a focus on AI & next-gen software, energy transition, new computing and sensing, new space, robotics and manufacturing, and tech-bio.

“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,” Adam Niewinski, co-founder and Managing Partner, OTB Ventures

NATO Innovation Fund: What you need to know?

Backed by 24 NATO Allies, the NATO Innovation Fund finances innovators across a wide range of emerging technology sectors, including energy, quantum computing, artificial intelligence, autonomy, novel materials, space, biotechnology, hypersonic systems, and next-generation communications.

Building on this initial portfolio of investments, the Fund will provide deep tech entrepreneurs with the support they need for up to 15 years, as well as the conviction and agility necessary to commercialise and implement their solutions at scale.