Amid increased momentum for defense, the NATO Innovation Fund refreshes its investment team

Two years after securing $1 billion in commitments from over 20 nations, the NATO Innovation Fund (NIF) is getting into a brand new chapter, marked by the arrival of two new companions and the departure of its penultimate founding staff accomplice.

In a context of elevated army spending throughout NATO members, funding in dual-use expertise has skyrocketed for the reason that initiative was first introduced in 2021. As soon as a no-go-zone for institutional buyers, protection and resilience tech final reached an all-time high of 10% of all VC funding in Europe, the place practically all NIF’s backers are situated.

This booming curiosity ought to have given NIF a first-mover benefit, however the fund was hampered by administration challenges and a sequence of high-profile departures. After the 2025 NATO Summit in The Hague reaffirmed its significance final June, NIF is now rising with an nearly solely new funding staff. It’s composed of three companions.

Whereas NIF initially had 4 companions and one managing accomplice, an individual acquainted with NIF stated that this flat, three-partner mannequin would be the construction in place for the foreseeable future, suggesting that no new hires are to be anticipated. These two appointments had beforehand been rumored, however the identities of the brand new companions had not been confirmed.

Two of the companions are new hires: Ulrich Quay and Sander Verbrugge, who can be primarily based in Amsterdam. Quay, a German nationwide, was most not too long ago answerable for company investments as a vice chairman at BMW, the place he beforehand based and led company enterprise fund BMW i Ventures. Verbrugge, a Dutch PhD in molecular biophysics, was beforehand a accomplice at deep tech VC fund Innovation Industries, which he joined after working at semiconductor design and manufacturing firm NXP. The third accomplice is London-based VC Patrick Schneider-Sikorsky, now the final remaining member of the unique funding staff. Alongside the brand new hires, the fund introduced the departure of founding staff accomplice Kelly Chen, who confirmed to TechCrunch that it was her determination and that she can be stepping away to construct a brand new enterprise. Chris O’Connor, one other founding staff accomplice, departed earlier this yr with comparable plans.

Chen at the moment sits on the board of a number of startups backed by NIF, however will transition her board tasks as soon as her employment on the NIF has wrapped up, TechCrunch discovered from its chief communications and advertising officer, Amalia Kontesi. 

Whereas some observers want the fund had deployed capital quicker, she stated NIF “is on observe to fulfill [its] investing objectives for the yr.” Since its inception, NIF has made 19 investments: seven into funds comparable to OTB Ventures, and 12 into startups together with Space Forge and Tekever, which makes dual-use drones.

Nonetheless, including new companions with industrial and scientific backgrounds, irrespective of how spectacular, might not fulfill those that want that the fund may spend money on Ukraine or pure protection, versus twin use, in response to Russia’s struggle financial system. However it’s also in keeping with NIF’s broader thesis to “empower deep tech founders to handle challenges in defence, safety, and resilience.”

Nonetheless, NIF has additionally ramped up its efforts on the protection aspect. Its staff was closely concerned within the growth of NATO’s Rapid Adoption Action Plan, geared toward accelerating the adoption and integration of latest technological merchandise for protection. NIF has additionally been increase its Mission Platform Group with strategic hires together with John Ridge, who was employed as chief adoption officer in 2024 to assist portfolio startups navigate army procurement.

As for its new companions, they have been as soon as once more employed via a course of beforehand described by VC Michael Jackson as akin to “building a boy band” — recognized by NIF’s board of administrators and authorised by LPs, somewhat than having teamed up primarily based on shared historical past or chemistry. 

This can be inevitable for a corporation that now counts 24 nations as restricted companions, however was typically pointed as one cause the earlier staff didn’t gel. This time, all three companions received to fulfill all through the recruitment course of and spend time collectively since then to “guarantee a easy transition and to place the staff for long run success,” Kontesi stated.

In an announcement shared solely with TechCrunch, NIF’s vice chair, professor Fiona Murray, in contrast the group to a startup. “We’re happy with what we achieved however like several efficient staff we’re studying, experimenting, bettering:  rushing up our processes, increasing our platform assist for startups, doubling down on ecosystem constructing and extra broadly recognizing the necessity to construct the sector and the capital stack.” 

Murray expressed delight in having introduced collectively a certified staff that may collaborate successfully, creatively and shortly. “They are going to allow us to maneuver much more quickly and decisively to drive the Alliance’s technological agenda and assist the most effective founders throughout European ecosystems,” she beforehand wrote in a joint assertion with NIF’s chair, Klaus Hommels. 

Hommels’ different actions as an investor have prompted questions about possible conflicts of interest, however no change seems to have been made to his function throughout NIF’s latest LP assembly in Venice. Relatively than dwelling additional on its reorganization, NIF appears set on serving to NATO grow to be extra resilient. “On this subsequent part,” NIF’s vice chair stated, “you’ll see us refocus on DSR alternatives and emphasize constructing firms that may drive industrial scale and actually assist ecosystems throughout Europe.”