Can a 75-year-old alliance actually think like a fast-moving venture capital firm? If you ask Dr. Nikos Loutas, the answer isn’t just “yes”, it’s that they don’t have a choice.
This time on Innovator Insights, we’re going inside the halls of NATO in Brussels. Dr. Loutas, NATO’s Director of Innovation, joined us to pull back the curtain on how the Alliance is hunting for the next generation of defense innovation. We aren’t just talking about tanks and planes anymore; we’re talking about AI, quantum, and the startups that are traditionally “too small” for the big leagues.
Here’s why NATO is betting a billion euros on the little guys:
1. Moving at the “Speed of Relevance”
One phrase kept recurring in our chat: the “speed of relevance.” In modern conflict, a perfect solution that arrives six months too late is essentially useless. Dr. Loutas was very clear. They need tech now.
To fix the old, slow way of doing things, NATO launched the Rapid Adoption Action Plan. Their goal is to take a great idea and get it battle ready in just 24 months. For founders, this is a game-changer. NATO is signaling that they are finally ready to match the pace of the private sector.
2. A Billion-Euro Safety Net: DIANA and the NIF
We dove deep into how NATO actually pays for all this. They have basically built a two-step engine to keep defense innovation alive.
- DIANA (The Accelerator): Think of this as NATO’s boot camp for startups. They find “dual use” companies, those solving civilian problems like logistics or data, and help them adapt for defense.
- The NATO Innovation Fund (NIF): This is the world’s first multi-sovereign VC fund, and it is sitting on €1 billion. As Nikos put it, this fund is NATO’s “insurance for our future.” They are investing today in the deep tech that might not pay off for five years but will keep us safe in ten.
3. The End of “Defense-Only” Tech
The coolest part of the conversation was realizing that NATO doesn’t just want military contractors anymore. They want the innovators who are building the world’s best AI imagery tools or biotech breakthroughs for the civilian world.
If you are a startup founder solving a massive data problem for a bank or a hospital, Nikos wants you to know that your tech has a home in the Alliance. The goal is to take that “dual use” potential and scale it across 32 nations simultaneously.
“What we have seen from Ukraine is a need to adopt new technologies at the speed of relevance. Practically, for me, the speed of relevance is actually as quickly as possible”.
Defense Innovation: Frequently Asked Questions
What is the difference between DIANA and the NATO Innovation Fund?
DIANA (Defence Innovation Accelerator for the North Atlantic) is an official NATO body focused on finding and accelerating dual-use startups through non-dilutive grants, mentorship, and testing centers. The NATO Innovation Fund (NIF) is a standalone, for-profit venture capital fund backed by 24 NATO allies. While they are separate entities, they collaborate to provide a complete pathway from early-stage acceleration to long-term commercial scaling.
Does my startup need to be a defense company to work with NATO?
No. In fact, DIANA specifically targets “dual-use” companies, which are startups developing technical solutions for the civilian market that also have defense and security applications. Early-stage startups with little to no prior experience in the defense sector are often the most likely to benefit from these programs.
How much funding can a startup receive through NATO programs?
Selected startups in the DIANA accelerator receive an initial non-dilutive grant of €100,000 for a six-month “boot-camp” phase. Companies that advance to the second “Grow” phase can receive up to an additional €300,000. Separately, the NATO Innovation Fund (NIF) makes larger equity investments, with initial checks typically ranging up to €15,000,000 for startups in the Seed through Series B stages.
How fast can NATO actually adopt new technology?
Under the newly endorsed Rapid Adoption Action Plan, NATO has set an ambitious goal to adopt and integrate new technological products into Allied armed forces within a maximum of 24 months. This plan focuses on accelerating procurement, embracing calculated risk, and using “innovation ranges” for real-world testing to bypass traditional bureaucratic delays.
What specific technology areas is NATO currently prioritizing?
NATO’s primary focus is on Emerging and Disruptive Technologies (EDTs), which include:
- Artificial Intelligence (AI) and Big Data
- Autonomy and Hypersonic Systems
- Quantum Technologies
- Biotechnologies and Human Enhancement
- Space, Energy, and Next-Generation Communications
Full Episode is out now!
The world of defense is changing faster than ever, and innovators are the ones leading the charge. If you want to hear the full breakdown of how NATO is rewriting the rules for startups and deep tech, don’t miss this conversation with Dr. Nikos Loutas.
Have a look at it on our YouTube Channel or Spotify:
