Russia's assault on Ukraine has made clear the threat to European civilian populations – and the crucial role of technological innovations in defending them.
As a result, the EU has committed to spend 800 billion euros on defence over the next four years.
That is bringing heavy demand for dual-use innovations that have both defence and civilian applications. And many startups whose products may have military applications are avidly seeking entry into the field.
Two small Finnish firms have just been chosen for a highly selective Nato innovation incubator programme, and they say it's already unlocking access to this high-investment sector. The vast defence market has traditionally been controlled by huge multinational corporations that deal directly with states.
Nato's Defence Innovation Accelerator for the North Atlantic (Diana) is designed to guide small, innovative firms into the sector.
"We’re the front door for new game-changers in the domain. We scout across the allied nations for those who are trying to convert their tech over to defence," Kadri Tammai, Regional Director at Nato Diana, based in Tallinn, said in Helsinki on Tuesday.
Since January, the Turku-based Aboa Space Research (ASRO) and the Porvoo startup Seatom Technologies have been part of the Diana scheme.
4% acceptance rate
They were among 150 European firms chosen out of some 3,700 applicants for this year's programme. Each gets a minimum of 100,000 euros in funding to start, with options to garner significantly heftier investments moving forward.
Defence Minister Antti Häkkänen (NCP) congratulated the winners in a press release, saying that "it makes us proud and happy that once again Finnish expertise is gaining a more prominent role in strengthening the Alliance’s capabilities".
On Tuesday, Seatom and ASRO joined other European startups for a Demo Day showcase event at the University of Helsinki – which is also a partner, along with Aalto University and the neighbouring VTT Technical Research Centre.
The other firms, from the UK, US, Canada and Germany, are now working at a Diana accelerator site at VTT, known as the Dual-Use LaunchPad. VTT is also cooperating with Diana and the University of Oulu at the 6G Test Centre. It was established in 2024 but is not yet a full-fledged Nato accelerator.
In Helsinki, ASRO showed off its handheld, AI-assisted fluorescence microscope that can quickly check for chemical, biological, radiological and nuclear risks – including potential germ warfare or rapidly spreading infections – even in remote, rugged conditions, whether that’s a natural disaster area or a battlefield.
"We’re completely amazed to see how much interest and traction we’ve gained since we began our Diana journey four months ago," said Kiira Tiensuu, ASRO’s Microscopy Business Area Director.
"Diana has played a key role in helping us scale our space business, capabilities, and know-how into the defence domain at remarkable speed," she told Yle News.
"We’re in discussions with defence forces of eight allied nations and more than 10 other key stakeholders are interested in our solution," ASRO Business Development Associate Benjamin Åkerlund told the gathering. "We've also been invited to take part in three Nato operational exercises, two of which will be this summer, participating in scenarios specifically scripted for our solution – exciting times!"
The 150 selected companies have access to Diana's network of 16 accelerator sites and more than 200 test centres across the 32 Nato countries.
The other Finnish company that recently joined the Nato programme, Seatom, presented its plans for a submersible micro reactor for naval and seabed operations.
According to its CEO, Roope Marttila, nuclear propulsion is the most viable option for emissions-free shipping. While shipping is now a major contributor of planet-warming greenhouse gas emissions, the International Maritime Organisation (IMO) has pledged to achieve net-zero emissions from international shipping by or around 2050.
Marttila says that his firm's designs can help reach that target by facilitating the adoption of nuclear propulsion for large vessels – and that the defence sector is prepared to adopt this faster than commercial shipping.
He says that joining Diana has fast-tracked this process.
"More than 20 investors have reached out to us because we got into the programme, and that doesn't even cover the broader network of vetted investors they can put us in touch with directly," Marttila explained to Yle News.
"But the biggest benefit has been the validation for our team and technology path. Considering that our tech development is pretty ambitious, it means even more to us than to an average dual-use tech company. And this already shows up in the interest we've gotten from defence ministries, big defence companies and commercial shipowners."
"Nato's innovation program has been hugely helpful in opening the right doors," agreed the firm’s Chief Operating Officer, Apoorva Prasad.
"We've been able to speak directly with end users and major defence companies almost immediately, which would have been unimaginable otherwise. And we're about to close our first equity funding round, which will help us rapidly hit the next few technical milestones," he added.
Seatom also aims to do extensive testing and validation work at Diana testing centres.
"They cover all the related costs, so the value of that can be worth many times as much as the initial grant funding of 100,000 euros. There's also a next phase that would unlock an additional 300,000 euros," said Marttila.
Unwanted attention from "adversaries"
Along with positive inquiries, Diana selectees are also often targeted by more suspicious attention, warns Tammai.
"So we tell the innovators to be prepared for a lot of attention, some of it good, but some of it definitely coming from adversaries as well. So they must be prepared on the cybersecurity side of things for that part as well," she said at the meeting.
"Diana is one of the only Nato bodies that primarily operates at an unclassified level, in order to lower barriers for innovators to get in. Of course, at some point you need security clearances," she pointed out.
"The most important benefit for companies is the opportunity to accelerate the path towards market-ready products and solutions," said Tiia-Maria Jaakkola, Manager of the VTT Dual-Use LaunchPad.
Finland’s first Nato Diana Accelerator Programme, it kicked off in January in Otaniemi, involving half a dozen startups from North America, Britain and Germany.
"It integrates our innovation ecosystem more closely into Nato and builds around our national capabilities in research, development and commercialisation," she said.
Silent airships for intelligence gathering
As an example of where that can lead, last month the Joensuu-based airship-maker Kelluu secured 15 million euros in funding led by the Nato Innovation Fund, backed by 24 Nato allies. It's the fund’s first investment in a Finnish company.
This follows Kelluu’s successful completion of two phases of the Diana programme after being picked in 2024. Kelluu says its silent, emission-free airships offer 24/7 monitoring across vast areas and intelligence gathering with drone-level detail.
The annual process re-starts next month, when the Diana programme invites firms to file proposals to meet specific challenges for the 2027 programme.
"We’re just about to launch a new set of challenges just in a couple of weeks' time in early June to start the process all over again," said Tammai.
