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NATO has entered a new domain and launched its first business accelerator program under its NATO Investment Fund, mainly for climate technology startups. The Defense Innovation Accelerator for the North Atlantic, or DIANA initiative, signifies NATO’s foray into venture capitalism, focusing on addressing climate-related security concerns.
Launched in 2023 with a purse of 1 billion Euros, sourced from NATO’s member countries, DIANA was set up to invest in technology that enhances energy resilience and addresses security threats exacerbated by climate change.
This move reflects NATO’s need to innovate or invest in new technology in the face of evolving geopolitical challenges, including the recent conflict in Ukraine.
Startups accepted into DIANA’s program focus on cybersecurity, surveillance, and energy resilience, emphasizing clean energy solutions. These startups receive initial grants and gain access to specialized testing facilities and resources.
For example, Ionate Energy, a British startup in DIANA, is working on modernizing grid transformer equipment to manage renewable energy supplies better.
Another example would be GaltTec, a startup specializing in energy-efficient fuel cells. Found by Glen Kelp, a physicist, along with two colleagues, they developed skinny ceramic tubes, much thinner than hair strands. These tubes have the potential to revolutionize fuel cell technology and offer lighter and more energy-efficient solutions for powering electronic devices and grid systems.
Such investments show NATO’s interest in technology startups beyond traditional defense sectors.
In total, NATO’s DIANA has invested in about 43 such startups.
Despite the military context of NATO’s involvement, DIANA does not take equity in participating companies. Instead, it facilitates connections between startups and defense agencies, offering opportunities for commercial and government partnerships.
However, some investors have expressed concerns about backing companies servicing the military due to potential ethical and financial implications.
Looking forward, DIANA plans to expand its focus to include startups working on smart grids, nuclear fusion, sustainable aviation fuel, and artificial intelligence. While some energy companies are skeptical of military partnerships, DIANA emphasizes its commitment to addressing common energy challenges and fostering innovation in the climate technology sector.
With DIANA, NATO aims to leverage startup investment to bolster energy resilience and mitigate security risks associated with climate change, signaling a shift towards proactive, technology-driven approaches to security and defense.
