EIF and NATO Innovation Fund Sign MoU to Boost Investment in European Defence and Security Sectors

The EIF is part of the European Investment Bank (EIB) Group, while the NIF is a standalone venture-capital fund backed by 24 NATO countries.

The European Investment Fund (EIF) and the NATO Innovation Fund (NIF) have signed a Memorandum of Understanding (MoU) to support the long-term growth of the defence, security, and resilience sectors across Europe. The EIF is part of the European Investment Bank (EIB) Group, while the NIF is a standalone venture-capital fund backed by 24 NATO countries.

The MoU aims to encourage private-capital funds to invest in technology sectors related to defence and security, enabling European companies to raise equity funding from a broader range of sources. This 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, as well as enhancing the overall ecosystem by involving all major stakeholders.

"By facilitating regular dialogue and knowledge sharing, the EIF and NIF will ensure a cohesive approach to strengthening the investment ecosystem for defence, security, and resilience," said Marjut Falkstedt, Chief Executive of the EIF. "This will benefit SMEs, midcaps, and the broader European innovation landscape."

The MoU outlines plans for EIF-NIF cooperation on ad-hoc activities to share knowledge and raise awareness about the potential of investments in defence and security. This collaboration aims to 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 defence, security, and resilience sectors among limited partners.

The collaboration with the NIF aligns with the EIB Group's Security and Defence Action Plan, which is expected to support these efforts primarily through the EIB's venture-debt product. This product is designed to address the funding needs of innovative companies and 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 involvement may prove beneficial.

“There is great momentum in deep tech that is propelling innovations to help strengthen European defence, security, and resilience,” said Andrea Traversone, Managing Partner of the NATO Innovation Fund. “We are excited to be collaborating 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 the EIF and NIF will also focus on designing new financial products to cater to companies’ needs. This strategic alliance represents a significant step forward in strengthening Europe's defence and security capabilities, unlocking new avenues for private investment, and driving innovation in these vital sectors.