NATO Allies Award €1 Billion Innovation Fund to European Tech Companies

A consortium of NATO allies has announced the first tranche of companies to receive funding from the alliance’s €1 billion ($1.1 billion) innovation fund.

The initiative, aimed at enhancing defense capabilities, was launched in 2022 following Russia’s invasion of Ukraine.

Fund Background:

The NATO Innovation Fund (NIF) is supported by 24 of NATO’s 32 member states, including recent members Finland and Sweden. The fund focuses on investing in technologies that bolster defense, security, and resilience.

Initial Investments:

On Tuesday, NIF confirmed investments in four European tech companies, each addressing key challenges in the defense and security sectors:

1. Fractile: A London-based computer chipmaker working on accelerating large language models (LLMs) like those used in ChatGPT.
2. ARX Robotics: A German company designing unmanned robots for various functions, including heavy-lifting and surveillance.
3. iCOMAT: A British manufacturer creating lighter materials for vehicles, enhancing mobility and durability.
4. Space Forge: A Welsh company utilizing the unique conditions of space (microgravity and vacuum) to produce semiconductors in orbit.

Andrea Traversone, the fund’s managing partner, emphasized the significance of accessing strategic technologies to ensure a secure and prosperous future for NATO’s one billion citizens.

Partnership with Venture Capital Firms:

The NIF has also collaborated with venture capital firms Alpine Space Ventures, OTB Ventures, Join Capital, and Vsquared Ventures to boost deep tech investments across Europe.