Amid larger momentum for protection, the NATO Innovation Fund refreshes its funding crew by means of NewsFlicks

Two years after securing $1 billion in commitments from over 20 international locations, the NATO Innovation Fund (NIF) is coming into a brand new bankruptcy, marked by means of the arriving of 2 new companions and the departure of its penultimate founding crew associate.

In a context of larger army spending throughout NATO contributors, funding in dual-use generation has skyrocketed for the reason that initiative was once first introduced in 2021. As soon as a no-go-zone for institutional buyers, protection and resilience tech ultimate reached an all-time excessive of 10% of all VC investment in Europe, the place just about all NIF’s backers are positioned.

This booming pastime must have given NIF a first-mover merit, however the fund was once hampered by means of control demanding situations and a sequence of high-profile departures. After the 2025 NATO Summit in The Hague reaffirmed its significance ultimate June, NIF is now rising with a nearly totally new funding crew. It’s composed of 3 companions.

Whilst NIF at the beginning had 4 companions and one managing associate, an individual conversant in NIF mentioned that this flat, three-partner type would be the construction in position for the foreseeable long run, suggesting that no new hires are to be anticipated. Those two appointments had prior to now been rumored, however the identities of the brand new companions had no longer been showed.

Two of the companions are new hires: Ulrich Quay and Sander Verbrugge, who can be founded in Amsterdam. Quay, a German nationwide, was once maximum just lately in command of company investments as a vice chairman at BMW, the place he prior to now based and led company project fund BMW i Ventures. Verbrugge, a Dutch PhD in molecular biophysics, was once prior to now a associate at deep tech VC fund Innovation Industries, which he joined after running at semiconductor design and production corporate NXP. The 3rd associate is London-based VC Patrick Schneider-Sikorsky, now the ultimate closing member of the unique funding crew. Along the brand new hires, the fund introduced the departure of founding crew associate Kelly Chen, who showed to TechCrunch that it was once her choice and that she can be stepping away to construct a brand new project. Chris O’Connor, some other founding crew associate, departed previous this yr with identical plans.

Chen lately sits at the board of a number of startups subsidized by means of NIF, however will transition her board obligations as soon as her employment on the NIF has wrapped up, TechCrunch realized from its leader communications and advertising and marketing officer, Amalia Kontesi. 

Whilst some observers want the fund had deployed capital sooner, she mentioned NIF “is heading in the right direction to satisfy [its] making an investment objectives for the yr.” Since its inception, NIF has made 19 investments: seven into finances reminiscent of OTB Ventures, and 12 into startups together with House Forge and Tekever, which makes dual-use drones.

Nonetheless, including new companions with commercial and medical backgrounds, regardless of how spectacular, won’t fulfill those that want that the fund may just put money into Ukraine or natural protection, versus twin use, in accordance with Russia’s battle financial system. However it’s also in keeping with NIF’s broader thesis to “empower deep tech founders to deal with demanding situations in defence, safety, and resilience.”

Then again, NIF has additionally ramped up its efforts at the protection facet. Its crew was once closely concerned within the building of NATO’s Speedy Adoption Motion Plan, aimed toward accelerating the adoption and integration of latest technological merchandise for protection. NIF has additionally been increase its Venture Platform Team with strategic hires together with John Ridge, who was once employed as leader 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 thru a procedure prior to now described by means of VC Michael Jackson as corresponding to “construction a boy band” — recognized by means of NIF’s board of administrators and licensed by means of LPs, moderately than having teamed up in response to shared historical past or chemistry. 

This can be inevitable for a corporation that now counts 24 international locations as restricted companions, however was once continuously pointed as one explanation why the former crew didn’t gel. This time, all 3 companions were given to satisfy right through the recruitment procedure and spend time in combination since then to “be certain that a easy transition and to put the crew for longer term luck,” Kontesi mentioned.

In a remark shared solely with TechCrunch, NIF’s vice chair, professor Fiona Murray, when compared the group to a startup. “We’re happy with what we completed however like several efficient crew we’re studying, experimenting, making improvements to:  rushing up our processes, increasing our platform fortify for startups, doubling down on ecosystem construction and extra extensively spotting the want to construct the field and the capital stack.” 

Murray expressed pleasure in having introduced in combination a professional crew that may collaborate successfully, creatively and briefly. “They’re going to allow us to transport much more impulsively and decisively to pressure the Alliance’s technological time table and fortify the most productive founders throughout Ecu ecosystems,” she prior to now wrote in a joint remark with NIF’s chair, Klaus Hommels. 

Hommels’ different actions as an investor have brought on questions about conceivable conflicts of pastime, however no alternate seems to were made to his position right through NIF’s contemporary LP assembly in Venice. Relatively than living additional on its reorganization, NIF turns out set on serving to NATO turn out to be extra resilient. “On this subsequent segment,” NIF’s vice chair mentioned, “you’ll see us refocus on DSR alternatives and emphasize construction corporations that may pressure commercial scale and in reality fortify ecosystems throughout Europe.”