TLDR:
– The NATO Innovation Fund (NIF), a €1bn fund backed by 24 nations, has made its first startup and VC fund investments.
– NIF focuses on deeptech and defence technology, as well as areas like resilience, materials manufacturing, and spacetech.
Article Summary:
Defence startups have received significant support from investors, including VCs, in recent times. The NATO Innovation Fund (NIF), established in 2021 and closed last year, has announced its initial investments in startups and VC funds focused on deeptech and defence technology.
The fund is backing companies and VC funds in Europe and the UK, with a focus on areas related to defence and security. NIF has made eight investments so far, spanning from robotics to materials manufacturing. The fund is particularly interested in “resilience” areas such as new materials, manufacturing, climate, energy, biotech, and spacetech.
Among NIF’s startup investments are ARX Robotics, iCOMAT, Space Forge, and Fractile, each operating in different sectors of materials manufacturing and technology development. NIF is also investing in early-stage VC funds, including Vsquared Ventures, OTB Ventures, Join Capital, and Alpine Space Ventures.
While funding in defence tech has increased, some investors remain hesitant about offensive tech or weapons-related investments. NIF aims to provide a new source of capital for deeptech and defence-focused VCs, emphasizing a more sophisticated approach to investments in the sector.
