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

The NATO Innovation Fund (NIF) is embarking on a new journey, two years after securing $1 billion from over 20 nations. This transition is highlighted by the addition of two new partners and the departure of one of its founding members, amid a backdrop of heightened military expenditures among NATO allies. Since its inception in 2021, NIF has witnessed a dramatic increase in investments directed towards dual-use technology. Once regarded as a risky area for institutional investors, defense and resilience technology has surged to represent 10% of all venture capital funding in Europe, where most of NIF's supporters are based. Despite this favorable landscape, the fund faced management hurdles and notable exits from key personnel. In the wake of the 2025 NATO Summit, which reaffirmed the fund's significance last June, NIF is now emerging with a streamlined investment team consisting of three partners. This revised structure replaces the original four-partner model and is expected to remain stable for the foreseeable future, signaling no immediate plans for further recruitment. The new partners, Ulrich Quay and Sander Verbrugge, both bring impressive credentials to the team. Quay, a German national, previously led corporate investments at BMW and founded BMW i Ventures. Verbrugge, a Dutch expert with a PhD in molecular biophysics, comes from a background in deep tech venture capital and semiconductor design. Patrick Schneider-Sikorsky, the remaining member of the original team, rounds out the new partnership. Alongside these appointments, the fund announced the exit of founding partner Kelly Chen, who is stepping away to pursue new ventures, having confirmed her decision to TechCrunch. Another founding partner, Chris O’Connor, made a similar departure earlier this year. While some critics have expressed a desire for faster capital deployment, NIF's chief communications officer, Amalia Kontesi, assured stakeholders that the fund is on track to achieve its investment goals for the year. Since its launch, NIF has made 19 investments, including notable startups like Space Forge and Tekever, focusing on the development of dual-use drones. Despite the impressive backgrounds of the new partners, some observers remain skeptical about the fund's ability to invest directly in Ukraine or traditional defense projects in response to the ongoing conflict with Russia. However, NIF continues to align with its mission of empowering deep tech founders to tackle challenges in defense, security, and resilience. NIF's team has also played a crucial role in crafting NATO’s Rapid Adoption Action Plan, designed to hasten the integration of innovative technologies into defense operations. The fund is intensifying its focus on defense, with strategic hires like John Ridge, appointed as chief adoption officer to assist portfolio startups with military procurement. In a statement, NIF’s vice chair, Professor Fiona Murray, likened the organization to a startup, emphasizing its commitment to learning and adapting to improve processes and support for startups. She expressed confidence in the newly formed team’s ability to drive NATO's technological agenda and support leading founders across European ecosystems. As NIF looks to the future, it aims to enhance its focus on opportunities that bolster both defense capabilities and industrial growth across Europe.