EIF and NATO Innovation Fund join forces to unlock private capital for Europe’s defense and security future
The European Investment Fund (EIF) and the NATO Innovation Fund (NIF) signed a Memorandum of Understanding (MoU) to cooperate in supporting the long-term growth of the defense, security, and resilience sectors across Europe. The EIF is part of the European Investment Bank (EIB) Group, and the NIF is a standalone venture capital fund backed by 24 NATO countries.
The MoU aims to encourage more private capital funds to become active investors in technology sectors associated with defense and security, enabling E.U. companies to raise equity funding from a broader range of sources. The partnership reflects the shared interest of the NIF and EIF in establishing a framework to support start-ups, small and medium-sized enterprises (SMEs), and midcaps and in enhancing the whole ecosystem by involving all the main stakeholders.
“By facilitating regular dialogue and knowledge sharing, the EIF and NIF will ensure a cohesive approach to strengthening the investment ecosystem for defense, security, and resilience,” said Marjut Falkstedt, chief executive of the EIF. “This will benefit SMEs, midcaps, and the broader European innovation landscape.”
The MoU also outlines plans for EIF-NIF cooperation on ad-hoc activities to share knowledge and raise awareness about the potential of investments in defense and security. This will help foster a comprehensive investment ecosystem, ensure effective outreach to private capital funds, support companies in their investment plans, and raise awareness of the investment opportunities in the defense, security, and resilience sectors among limited partners.
The collaboration with the NIF is also in line with the EIB Group’s Security and Defence Action Plan, which is expected to support the effort primarily through the EIB’s venture-debt product designed to address the funding needs of innovative companies and which may complement EIF and NIF venture capital and private equity funding in some cases. The signatories will also exchange information with the European Commission in areas where its potential involvement may prove beneficial for the purposes of the MoU.
“There is great momentum in deep tech that is propelling innovations to help strengthen European defense, security, and resilience,” said Andrea Traversone, Managing Partner of NATO Innovation Fund. “We are excited to collaborate with the EIF, the EIB Group, and the Commission to unlock investment opportunities for European businesses, advance capacity building for dual-use innovation, and share best practices across investors, innovators, and government.”
The collaboration between EIF and NIF will also focus on designing new financial products to meet companies’ needs. The strategic alliance between the EIF and NIF represents a significant step forward in strengthening Europe’s defense and security capabilities, unlocking new avenues for private investment, and driving innovation in these vital sectors.
Financing for Europe’s security and defense industry is among the EIB Group’s strategic priorities. We provide comprehensive financial support and solutions designed to meet the demands of companies and public sector entities regardless of their size in the security and defense sector. From reconnaissance and surveillance, spectrum protection, and control to cybersecurity solutions, infrastructure, and military mobility, our financing solutions are designed to bolster projects that keep Europe safe, resilient, and innovative.