The NATO Innovation Fund is a $1 billion fund dedicated to sectors where venture capital has been scarce, investing in a wide range of verticals such as AI, space tech, manufacturing, transportation, and robotics. OTB Ventures focuses on space tech, enterprise automation and AI, cybersecurity, and fintech infrastructure. MD One Ventures invests in early-stage companies with a focus on dual-use technology. The Israel Resilience Fund aims to invest in startups impacted by war or developing solutions relevant to Israel's immediate needs. D3, an early-stage fund, invests in founders who leverage technology to help Ukraine defend itself and define the future of the West's national security.
Key takeaways:
- Global military expenditure reached $2.4 trillion last year, with startups and investors increasingly interested in defense tech and resilience tech, which have both civilian and military applications.
- German-based AI startup Helsing is an example of the significant capital available to tech companies with military potential, with investors such as Spotify founder Daniel Ek showing interest.
- NATO Innovation Fund, OTB Ventures, MD One Ventures, Israel Resilience Fund, and D3 are venture capital firms investing in resilience tech outside of the U.S., with a focus on areas such as AI, space tech, manufacturing, transportation, and robotics.
- The rise of defense tech as an investment trend is global, with funds large and small now willing to fund international startups in the broader resilience tech space, including those with dual-use potential.