Helsinki, May 17, 2023 – Finland’s membership in NATO opens up new opportunities for Finnish startups. Finland’s application to participate in the NATO Innovation Fund was approved at the fund’s meeting in Athens on May 9, 2023. Tesi, the Finnish state-owned investment company, will invest 35 million euros in the fund. This collaboration provides Finnish startups developing new technologies and capital investment funds with enhanced possibilities for cooperation and funding.
The NATO Innovation Fund aims to invest in early-stage deep tech startups in NATO member countries and various venture capital funds that support these companies. The newly established fund has a size of one billion euros, and 22 NATO nations joined the fund when it was established in the summer of 2022.
Minister of Economic Affairs Mika Lintilä emphasizes the importance of Finland becoming an active player in NATO’s crucial functions and networks right from the start of membership.
“The purpose of the fund is to ensure that expertise and ownership related to new technologies and cutting-edge innovations remain within NATO countries. Finland has tremendous potential to contribute in areas important to NATO, such as artificial intelligence and quantum technology. The fund represents a new source of growth capital for Finnish startups in the early stages that are developing transformative technology,” Lintilä states.
“We are developing international networks and channeling foreign capital and expertise to Finland. Tesi’s investment provides Finnish capital investment funds and startups access to the NATO Innovation Fund and its collaboration network,” says Pia Santavirta, CEO of Tesi.
NATO Innovation Fund Invests in Capital Investment Funds and Startups The NATO Innovation Fund focuses on technologies primarily intended for commercial use but also applicable in defense or security contexts (dual-use products). These technologies include artificial intelligence, big data, quantum technology, new materials, energy, biotechnology, and space-related innovations.
“In practice, the NATO Innovation Fund aims to finance companies in the deep tech industry. According to a study conducted by Tesi, there are approximately 240 such companies in Finland. Deep tech companies often require significant investments in their early stages and long-term capital due to the lengthy development cycles,” explains Matias Kaila, responsible for fund investments at Tesi.
The NATO Innovation Fund has recently been established and will closely collaborate with NATO, particularly with NATO’s research and technology organization, as well as with the Defense Innovation Accelerator for the North Atlantic (DIANA), targeting businesses and research institutes. The fund is expected to commence operations before the NATO Summit in July 2023.