Despite recent statements from Vice President J.D. Vance and U.S. Defense Secretary Pete Hegseth emphasizing the need for Europe to increase its defense spending, the continent is already making significant strides in investing in its defense, particularly in the technology sector. In fact, the European defense industry is undergoing a notable transformation, with a growing focus on innovation and cutting-edge technologies.

A key indicator of this trend is the significant increase in investment in “Defense, Resilience, and Security” (DSR) tech, which has reached an all-time high of 10% of all VC funding in Europe. Furthermore, the U.K. and NATO have recently launched the first NATO-approved cohort of startups under the Defense Innovation Accelerator for the North Atlantic (DIANA) program, in partnership with the U.K. This initiative aims to accelerate the development of innovative technologies for NATO countries, with a focus on dual-use applications that can benefit both military and civilian sectors.

The DIANA program is designed to connect defense personnel, startups, and prime contractors, facilitating the development of new technologies and innovative solutions. The program includes a network of 23 affiliated accelerator sites and 182 test centers, providing a comprehensive ecosystem for startups to grow and develop their technologies. By leveraging this network, DIANA aims to fast-track the development of cutting-edge technologies that can address the complex challenges faced by NATO countries.

The U.K.’s Defense and Security Accelerator (DASA) is leading the U.K. effort, in partnership with IoT Tribe, which heads the Janus Consortium on dual-use technologies. This consortium also includes Atmos VC, a deep tech investor, and the SETsquared Partnership, a collaboration between six research-led UK universities and industry partners. The Janus Consortium is focused on developing technologies that can be used for both civilian and defense applications, reflecting the dual-use nature of many emerging technologies.

The first cohort of five startups has been selected for a six-month program with DASA, with companies specializing in AI, electronics, semiconductors, and materials science. These startups were chosen from over 2,400 applications, demonstrating the strong interest in the program and the potential for innovation in the European defense sector. The selected companies will have access to a range of resources and support, including funding, mentorship, and networking opportunities, to help them develop their technologies and bring them to market.

In a conversation with TechCrunch, Tanya Suarez, CEO of IoT Tribe, highlighted the significance of the program and the potential for innovation in the defense sector. “With DASA, we run competitions for U.K. defense, and we’ve bought extra capacity within this system to put our own companies through as well,” she said. “The cohorts that are going through at the moment answer the call for surveillance and sensing. So we’re looking at technologies that could be used to essentially monitor either people or equipment.” Suarez also emphasized the importance of collaboration between industry, academia, and government to drive innovation and address the complex challenges faced by the defense sector.

Suarez added, “We have really close links to our customers across defense, plus we get a really great sense of the problems and the challenges that they’re trying to overcome.” This close collaboration enables the development of solutions that are tailored to the specific needs of the defense sector, while also having potential applications in the civilian sector. By leveraging the DIANA program and the Janus Consortium, the U.K. and NATO are well-positioned to drive innovation and growth in the European defense sector.

Through the DIANA program and the Janus Consortium, the U.K. and NATO are fast-tracking the development of dual-use technologies that can benefit both military and civilian applications across the Alliance. This initiative has the potential to drive significant innovation and growth in the European defense sector, while also addressing the complex challenges faced by NATO countries. The selected startups are at the forefront of this effort, and their technologies have the potential to make a significant impact in the years to come.

The five startups selected for the program are:

• AI Verse (France) “An artificial intelligence (AI) company addressing the challenges surrounding accessibility, quality, privacy, accuracy, and labelling of images for training computer vision models.” AI Verse is developing innovative solutions for the development of AI models, with applications in areas such as surveillance and sensing.
• EIFys (Finland) “Founded by university researchers, the company aims to commercialise induced junction black silicon photodiodes.” EIFys is focused on the development of advanced materials and technologies, with potential applications in areas such as sensing and surveillance.
• Metahelios (U.K.) “Company building imaging technologies for industries through a nanotechnological approach.” Metahelios is developing innovative imaging technologies, with potential applications in areas such as surveillance and sensing.
• RVmagnetics (Slovakia) “A high-technology company in the field of sensors and identification technologies based on microwaves.” RVmagnetics is focused on the development of advanced sensors and identification technologies, with potential applications in areas such as surveillance and sensing.
• Winse Power (Finland) “A company developing Optal links, a solution for delivering power and data with light, with applications in the sensing and surveillance fields.” Winse Power is developing innovative solutions for the transmission of power and data, with potential applications in areas such as sensing and surveillance.