In a recent development, four European tech firms have been selected as the first beneficiaries of the €1 billion ($1.1 billion) innovation fund set up by a consortium of NATO allies.
What Happened: The NATO Innovation Fund (NIF) was initiated in 2022 in response to Russia's aggression towards Ukraine. The fund, supported by 24 out of 32 NATO members, is designed to strengthen the alliance's defenses via tech investments.
The NIF has backed four European tech firms to tackle defense, security, and resilience issues. The beneficiaries include London's Fractile AI, a computer chipmaker, and Germany's ARX Robotics, a designer of unmanned robots. The remaining two startups are British manufacturer iCOMAT, which creates lighter materials for vehicles, and Welsh firm Space Forge, which utilizes space conditions to manufacture semiconductors in orbit.
Andrea Traversone, the fund's managing partner, stated, "Enabling access to strategic technologies is key to securing a safe and prosperous future for the alliance's one billion citizens."
The fund has also collaborated with venture capital firms Alpine Space Ventures, OTB Ventures, Join Capital, and Vsquared Ventures to encourage further investment in deep tech across Europe.
Why It Matters: The NIF successfully secured over $1 billion for its flagship fund in 2023, with 23 NATO members formally becoming limited partners in the fund. The fund's initial investments were planned to commence later that year.
This development comes when tech giants like Google's parent company Alphabet
