Introduced by Andreas Munk Holm, this EUVC Live at GoWest series spotlights the thought leadership of policymakers, institutional investors, GPs, corporates, and public capital leaders around one defining question:
How does Europe mobilize its own capital to secure its technological future?
Across the sessions, one theme emerges repeatedly:
Europe does not lack talent.
It does not lack innovation.
It does not lack savings.
It lacks coordination.
In an era of rising geopolitical risk, technological leadership is no longer just an economic ambition. It is a security requirement.
In his keynote, Karl-Christian Agerup, Vice-Chair of the NATO Innovation Fund (NIF) addresses this question directly. The €1 billion fund, backed by 24 NATO nations and launched in 2022, represents a structural shift in how defense, capital markets, and innovation policy intersect.
Its premise is straightforward: Europe cannot secure its future capabilities without building its own capital infrastructure.
The Strategic Backdrop
The war in Ukraine accelerated trends that were already visible.
Supply chains are fractured.
Energy dependencies became liabilities.
Defense budgets increased.
Technological competition intensified.
At the same time, Europe accounted for less than 10% of global deep tech investment. Venture capital for strategically sensitive technologies—advanced materials, AI-enabled defense systems, quantum, and semiconductors—remained thin and geographically concentrated.
The issue was not scientific talent.
It was capital architecture.
Technological sovereignty requires:
Ownership
Scale
Continuity of investment
Without those, capabilities migrate.
Why the Fund Exists
The NATO Innovation Fund was built in response to structural weaknesses.
1. Ownership Gaps
Europe has repeatedly generated early-stage innovation only to lose control as companies scale, particularly in deep tech and defense-adjacent sectors.
2. Institutional Silos
In many European countries, startups and ministries of defense operate in parallel systems. Procurement processes are slow, opaque, and misaligned with venture timelines.
3. Insufficient Sovereign Capital
Strategic technologies require patient, risk-tolerant capital that operates across cycles. Private markets alone have not consistently filled that role.
4. Fragmentation
NATO countries maintain distinct procurement systems, regulatory frameworks, and data policies. Scaling across 24 allied markets is structurally complex.
The NATO Innovation Fund attempts to address these constraints through coordinated capital deployment.
What Makes NIF Structurally Different
NIF is not a traditional venture fund.
Backed by 24 allied nations, it represents a pooled sovereign commitment to deep tech. The €1 billion structure enables both direct investments and fund-of-funds allocations.
To date:
17 direct investments
9 fund investments
~20% allocated to emerging deep tech managers
But capital deployment is only one function.
One of NIF’s most distinctive features is its Mission Platform Group, which connects startups directly with NATO exercises and operational environments.
Instead of waiting years for procurement cycles, companies can test and validate technologies in real-world defense scenarios.
That integration layer is critical.
Venture-backed startups often fail not because the technology doesn’t work, but because they cannot bridge the gap between innovation and deployment.
NIF attempts to compress that distance.
At the same time, the fund follows a crowd-in strategy. It aims to catalyze private capital rather than replace it, anchoring rounds and signaling institutional backing to reduce perceived risk for co-investors.
Strategic Focus Areas
NIF concentrates on technologies at the intersection of sovereignty and resilience:
Dual-use and defense-first technologies
Security and resilience infrastructure
Industrial-scale capacity
Underserved European regions with strong technical talent but limited capital access
Policy reform around procurement and data governance
The regional dimension matters.
Technological sovereignty cannot be geographically concentrated in a few hubs. Broader venture capacity across Europe strengthens systemic resilience.
Sovereign Capital as Strategy
The deeper implication of NIF is conceptual.
Capital itself has become a strategic instrument.
Defense is no longer confined to traditional contractors.
Critical capabilities now include:
AI
Quantum systems
Semiconductors
Advanced manufacturing
Cybersecurity
Energy resilience
These sectors are born inside venture ecosystems.
If sovereign actors do not participate in those ecosystems, ownership and influence migrate.
NIF reflects a recognition that security policy and capital allocation can no longer operate independently.
From Theory to Operations
Europe’s competitiveness in defense technology is no longer abstract.
It is operational.
The NATO Innovation Fund signals a shift from reactive procurement to proactive ecosystem building. Its success will not be measured only in financial returns, but in whether it catalyzes durable venture infrastructure across allied nations.
The central question remains:
Can coordinated sovereign capital create the conditions for European technological independence in critical sectors?
The NATO Innovation Fund is one attempt to answer that question — not with rhetoric, but with capital.
Because in today’s geopolitical environment, sovereignty is not declared.
It is financed.
