NATO Innovation Fund Restructures Team Amid Rising Defense Tech Investments
As global defense priorities shift and NATO countries ramp up military spending, the NATO Innovation Fund is undergoing a major transformation. With two new partners joining and one founding partner exiting, this billion-dollar fund is setting a refreshed course for investing in dual-use technologies. The NATO Innovation Fund, initially launched with backing from over 20 countries, is doubling down on innovation with a streamlined team structure to better capitalize on the growing demand for resilience and defense technology.
Image Credits:Martin Bissig
Governments are increasingly recognizing the strategic value of startups that can serve both civilian and military applications, and the NATO Innovation Fund is positioning itself to lead in this domain. With new leadership and a renewed focus, the fund aims to fulfill its mission to drive innovation that strengthens collective defense and security for NATO member states.
Why the NATO Innovation Fund Matters for Dual-Use Technology
The NATO Innovation Fund plays a crucial role in bridging the gap between cutting-edge startups and government-backed defense priorities. Since its 2021 announcement, NIF has prioritized investments in dual-use technologies—those with both commercial and defense applications—such as AI, cybersecurity, satellite communications, autonomous systems, and semiconductors. These areas are becoming essential for NATO members focused on resilience in the face of rising global threats.
By 2024, defense and resilience startups accounted for 10% of all venture capital funding in Europe—a record high and a stark reversal from previous years when such sectors were largely avoided by institutional investors. The NATO Innovation Fund had a chance to lead early in this trend, but internal shakeups slowed its momentum. Now, with a new investment team firmly in place, NIF aims to reclaim that first-mover advantage and guide startups to success with not just capital but strategic insight and NATO-wide market access.
Inside the NATO Innovation Fund’s New Leadership Structure
The fund’s internal reorganization is more than just a personnel shift—it’s a strategic overhaul designed to sharpen its investment thesis and execution. Originally comprised of four partners and one managing partner, the NATO Innovation Fund now operates with a streamlined team of three partners. This flatter structure is seen as a move to encourage faster decision-making and greater accountability across its €1 billion portfolio.
The newly appointed partners, Ulrich Quay and Sander Verbrugge, bring deep experience in venture capital and industrial innovation. Quay, based in Amsterdam, previously led BMW’s investment arm, BMW i Ventures, and has an extensive background in scaling frontier tech companies. Verbrugge, also Amsterdam-based, brings scientific rigor with a PhD in molecular biophysics and a track record at Innovation Industries and semiconductor giant NXP. The third partner, Patrick Schneider-Sikorsky, remains the last original team member, offering continuity and institutional knowledge critical during this transitional phase.
With this trio, the NATO Innovation Fund aims to build a portfolio of companies that can deliver both financial returns and strategic value for NATO allies. It’s not just about funding—it’s about shaping a tech ecosystem aligned with defense priorities, innovation integrity, and operational readiness.
What’s Next for the NATO Innovation Fund and Its Impact on Global Defense Innovation
The NATO Innovation Fund’s restructuring signals a reinvigorated approach to sourcing and supporting tech startups that can serve NATO’s long-term strategic goals. With global defense budgets on the rise and cyber threats becoming more sophisticated, the demand for dual-use innovation is stronger than ever. By backing founders building transformative technologies—from secure communications to energy resilience—the NATO Innovation Fund is creating a pipeline of solutions that can scale across multiple NATO countries.
Founding partner Kelly Chen’s exit, alongside the earlier departure of Chris O’Connor, marks the end of an era and the beginning of a new one. Chen has stated that her decision to leave was voluntary and that she intends to launch a new venture. Such transitions are common in the venture world and often open up fresh opportunities for innovation and leadership realignment.
Looking forward, the fund’s base in Amsterdam offers proximity to key European tech hubs and NATO institutions, enabling stronger collaboration with policymakers, defense stakeholders, and scientific communities. With a new team and renewed clarity, the NATO Innovation Fund is now well-positioned to lead Europe’s charge in defense-aligned innovation—where security, sovereignty, and startup success converge.
The NATO Innovation Fund is stepping into a more decisive role as the landscape of global defense and venture capital evolves. With new leadership and a focus on dual-use innovation, the fund is aligning itself with the technological challenges of tomorrow. For startups operating at the intersection of deep tech and national security, NIF’s reinvention offers a timely opportunity to grow with institutional support and cross-border impact.
By integrating expertise from the private sector, academia, and NATO’s strategic objectives, the fund isn't just reacting to geopolitical trends—it's helping shape them.
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