Amid increased momentum for defense, the NATO Innovation Fund refreshes its investment team
Brussels, Belgium – The NATO Innovation Fund (NIF), a pivotal initiative designed to foster dual-use deep tech innovations across the Alliance, is undergoing a significant strategic refresh, marked by key changes to its investment leadership. This move comes two years after the fund successfully secured an impressive $1 billion in commitments from over 20 member countries, signifying a renewed focus amidst rising global defense spending.
The landscape for defense and resilience technology investment has seen unprecedented growth since NIF’s inception in 2021. Once a challenging sector for institutional investors, it now accounts for a remarkable 10% of all venture capital funding in Europe – an all-time high – where the majority of NIF’s financial backers are situated. This surge underscores the critical importance of technological advancements in bolstering security and defense capabilities across NATO nations.
Despite its early mover advantage, NIF has faced management hurdles and notable departures within its founding team. However, following the reaffirmation of its strategic importance at the 2025 NATO Summit in The Hague last June, the fund is now poised for a new chapter. It emerges with a significantly revamped investment team, now streamlined to three partners, signaling a clearer, more focused operational model for the foreseeable future.
The new appointments bring a wealth of diverse experience to the fund. Joining the team are Ulrich Quay and Sander Verbrugge, both based in Amsterdam. Ulrich Quay, a German national, previously served as Vice President of Corporate Investments at BMW, where he notably founded and led the corporate venture fund, BMW i Ventures. Sander Verbrugge, a Dutch molecular biophysics PhD, transitions from his role as a partner at deep tech VC fund Innovation Industries, following his tenure at semiconductor giant NXP.
The sole remaining member from the original investment team is London-based VC Patrick Schneider-Sikorsky, who continues his vital role. These new additions follow the departures of founding partners Kelly Chen and Chris O’Connor earlier this year. Kelly Chen confirmed her decision to leave to pursue a new venture, and is in the process of transitioning her board responsibilities for NIF-backed startups.
While some observers have voiced desires for a faster deployment of capital, NIF’s Chief Communications and Marketing Officer, Amalia Kontesi, asserts that the fund remains on track to meet its investment objectives for the year. Since its launch, NIF has made 19 investments: seven into specialized funds such as OTB Ventures, and twelve direct investments into startups like Space Forge and Tekever, the latter known for its dual-use drone platforms.
NIF’s strategic direction aligns with its core mission to empower deep tech founders addressing critical challenges in defense, security, and resilience. The fund has actively ramped up its engagement on the defense front, playing a key role in the development of NATO’s Rapid Adoption Action Plan. This initiative is designed to accelerate the integration of cutting-edge technological products for defense applications. Furthermore, the fund has strengthened its Mission Platform Group with strategic hires, including John Ridge, appointed as Chief Adoption Officer in 2024, to guide portfolio startups through military procurement processes.
Professor Fiona Murray, NIF’s vice chair, likened the organization to a startup, emphasizing its commitment to continuous learning and improvement. In a statement shared exclusively with TechCrunch, she highlighted efforts to “speed up our processes, expanding our platform support for startups, doubling down on ecosystem building and more broadly recognizing the need to build the sector and the capital stack.” Murray expressed confidence in the newly structured team’s ability to collaborate effectively and drive the Alliance’s technological agenda. Despite ongoing discussions regarding potential conflicts of interest concerning Chairman Klaus Hommels’ other activities, his role within NIF remains unchanged.
As NIF moves into this next phase, the focus will intensify on “DSR opportunities and emphasize building companies that can drive industrial scale and really support ecosystems across Europe,” signaling a clear trajectory towards strengthening the Alliance’s technological resilience and innovation capabilities.
