The goal of the NATO Innovation Fund is to invest in early-stage deep technology startups and venture capital funds that develop cutting-edge technology that is a priority for NATO. The fund, totaling one billion euros, was established based on the commitments of 22 NATO member states at the 2022 NATO summit in Madrid. The operation of the NATO Innovation Fund will start this year at the same time as the NATO Summit in Vilnius.
Minister of Economic Affairs, Mika Lintilä, emphasizes the importance of Finland’s active participation in NATO operations and networks from the very beginning. Finland has enormous potential in technologies central to NATO’s interests, including artificial intelligence (AI) and quantum technology. By joining the fund, Finnish early-stage startup companies working on disruptive technologies will get a new source of growth funding, which will ensure the know-how and possession of these technologies in NATO countries.
CEO of Tes, Pia Santavirta, emphasizes the importance of developing international networks and attracting international capital and expertise to Finland. Tesi’s investment in the NATO Innovation Fund enables the utilization of Finnish venture capital funds and startup companies in the fund’s resources and cooperation networks. This opens up opportunities for cooperation, information sharing and access to global markets.
NATO’s innovation fund primarily focuses on financing companies in the deep technology sector, which covers, among other things, artificial intelligence, quantum technology, new materials, energy, biotechnology, next-generation communications and space. These technologies often have civilian and commercial applications, but can also be used for defense and security purposes, making them dual-use technologies.
According to a study by Tesi, there are approximately 240 deep technology companies in Finland. These companies typically require significant investments from the start, and their long development horizon requires patient capital. The NATO Innovation Fund and its collaboration with the NATO Science and Technology Organization (STO) and the NATO Defense Innovation Accelerator for the North Atlantic (DIANA) work closely together to support and finance these deep technology companies.
Finland’s joining the NATO innovation fund together with Tesi’s investment is a significant milestone for Finnish startups working in emerging technology. Through cooperation networks and growth financing opportunities, Finnish entrepreneurs can further develop their disruptive technologies and at the same time promote NATO’s priorities. This cooperation also strengthens Finland’s position in NATO’s key operations and networks, which enables increased participation and information exchange. When the NATO Innovation Fund starts investing, Finnish startup companies will be in a good position to utilize these resources and promote innovation in key technology fields.
HT
Source: The Nordic Page