NATO Innovation Fund Revamps Team as Defense Spending Soars

The NATO Innovation Fund (NIF) has announced a significant restructuring of its investment team, bringing in two new partners while losing a founding member. This change comes shortly after the organization secured $1 billion in commitments from over 20 countries and amid rising military expenditures across NATO member states.

Increased funding for dual-use technology, which serves both civilian and military purposes, has surged since the NIF was established in 2021. Notably, defense and resilience technology now accounts for an all-time high of 10% of all venture capital funding in Europe, where most of NIF’s backers are located. Despite this momentum, the fund has faced management challenges and the departure of key personnel.

Following the reaffirmation of NIF’s role at the 2025 NATO Summit in The Hague last June, the organization is now launching with an almost entirely new investment team composed of three partners. This structure signals a shift from the previous model, which included four partners and one managing partner. According to a source familiar with NIF, this new flat three-partner arrangement will be the standard moving forward, with no additional hires anticipated.

Among the new partners are Ulrich Quay and Sander Verbrugge, both of whom will operate from Amsterdam. Quay, a German national, previously led corporate investments at BMW as a vice president and founded the corporate venture fund BMW i Ventures. Verbrugge, a Dutch PhD in molecular biophysics, was a partner at deep tech venture capital fund Innovation Industries before joining NIF.

The third partner, Patrick Schneider-Sikorsky, remains the sole original member of the investment team. The recent changes also include the departure of founding team partner Kelly Chen, who confirmed to TechCrunch that she chose to leave in order to pursue a new venture. Another founding partner, Chris O’Connor, departed earlier this year under similar circumstances.

While some observers have expressed a desire for NIF to accelerate its capital deployment, the fund remains optimistic. Amalia Kontesi, NIF’s Chief Communications and Marketing Officer, stated that the organization is “on track to meet [its] investing goals for the year.” Since its inception, NIF has made 19 investments, including seven into funds like OTB Ventures and twelve into startups such as Space Forge and Tekever, which specializes in dual-use drones.

Despite the impressive backgrounds of the new partners, some stakeholders wish NIF could broaden its investment scope to include direct support for Ukraine or pure defense initiatives in light of Russia’s ongoing military actions. Nevertheless, NIF maintains its commitment to empowering deep tech founders to tackle challenges in defense, security, and resilience.

The fund’s team has also been active in developing NATO’s Rapid Adoption Action Plan, which seeks to expedite the integration of new technological products into defense operations. As part of this initiative, NIF has strengthened its Mission Platform Group, making strategic hires such as John Ridge, who was appointed as chief adoption officer in 2024 to assist portfolio startups with military procurement processes.

The recruitment process for the new partners was likened to “building a boy band” by VC Michael Jackson, as candidates were selected by NIF’s board of directors and approved by limited partners, rather than simply being chosen based on prior camaraderie. This approach reflects the organization’s growth as it now includes 24 countries as limited partners.

In a statement shared with TechCrunch, NIF’s vice chair, Professor Fiona Murray, emphasized the organization’s ongoing evolution. “We are proud of what we accomplished but like any effective team, we are learning, experimenting, and improving,” she said. Murray highlighted the importance of collaboration and creativity among the new team members, stating that they will help drive NATO’s technological agenda while supporting emerging founders across European ecosystems.

The restructuring comes amid questions regarding potential conflicts of interest involving NIF’s chair, Klaus Hommels, due to his other investment activities. However, no changes to his role were reported during the recent limited partners meeting in Venice.

Looking ahead, NIF is poised to refocus its efforts on defense and security opportunities. As the vice chair noted, the organization aims to build companies that can achieve industrial scale and bolster ecosystems throughout Europe.