How NATO is turning to startups to stay ahead of its competitors.

      Technology is redefining warfare. Drones now fill the space where soldiers once marched, AI can identify threats more quickly than spies, and cyberattacks are unsettling critical infrastructure without a single bullet being fired. To prepare for future conflicts, NATO is looking towards startups.

      In June 2023, the Alliance introduced DIANA, an initiative designed to fund and promote defense innovations. Through a network of more than 200 accelerator sites and testing centers, DIANA unites universities, industry, and governments to collaborate with startups on new defense capabilities.

      Leading this initiative is Jyoti Hirani-Driver. Having previously served as a counter-terrorism policy advisor for the British government, she was named COO of DIANA last year. Her goal is to identify dual-use technology that can benefit both military personnel and civilians across the 32 NATO member countries and to implement it in the field ahead of NATO's adversaries.

      "This is the first time we are uniting for defense innovation," she tells TNW. "We've always required advanced tech and innovation to stay ahead of our rivals and ensure our armed forces have the most effective combat capabilities. DIANA can facilitate that."

      During the TNW Conference on June 19, Hirani-Driver will discuss the increasing significance of defense technology in a panel featuring four leaders from the sector in Europe. In anticipation of the session, she elaborated on DIANA's objectives and the importance of dual-use technology.

      The pathway for defense tech to enter the market

      Introducing new innovations to the military is often a challenging endeavor. The defense sector has historically been dominated by large contractors, complicated integration processes, and protracted procurement cycles, which can hinder the adoption of new technologies. Startups also find it difficult to navigate these hurdles.

      Hirani-Driver's experience in government provided her with insight into these challenges. She was involved in counter-terrorism during the emergence of ISIS and assisted in British responses to terrorist threats, learning that national security necessitated novel approaches.

      "We recognized that we couldn't continue with the same methods," she states. "We needed to explore innovation and collaborate with the tech industry."

      She soon had the opportunity to implement this perspective. In 2018, she became Chief of Staff for the Ministry of Defence’s (MoD) Defence Innovation Directorate, where she oversaw the acquisition of £1.1 billion (€1.3 billion) in tech R&D funding for the MoD. This funding supported advancements in hypersonics, big data, autonomous systems, AI, and space technologies.

      "My role there was to integrate innovation into the very fabric of defense—not just in terms of capabilities, but also in our personnel," she explains. "We must adopt innovative thinking in all our endeavors. We need to train our personnel more effectively so they understand what to expect and how to succeed in combat situations."

      This perspective aligns with DIANA’s goal of promoting dual-use technology. The strategy broadens the talent pool by bringing in companies from outside the defense industry, accelerates adoption through faster civilian markets, and enhances commercial viability through diversified revenue streams. If startups can thrive in civilian markets, they are more likely to succeed in the defense sector.

      "There are startups accomplishing impressive feats in the civilian sector that are unaware of the value they could offer to defense," says Hirani-Driver. "We assist them in making that transition."

      Hirani-Driver was appointed COO of NATO DIANA in January 2024.

      How startups can transition to defense

      DIANA's programs focus on solutions to specific defense and security issues. The most recent five areas of focus were Energy & Power, Data & Information Security, Sensing & Surveillance, Human Health & Performance, and Critical Infrastructure & Logistics.

      Chosen applicants enter a six-month program facilitated by accelerator sites throughout the Alliance. They also connect with NATO mentors, end-users, and specialized test centers.

      One of these test facilities is CR14 in Estonia, described as a military-grade "multiverse of cyber ranges" providing virtual environments for cybersecurity development. Under DIANA, the British startup Goldilock utilized this site to validate a physical network isolation solution that can quickly disconnect and physically segment critical national infrastructure.

      Hirani-Driver asserts that the experience offers more than just technical validation: "They receive a stamp of approval that their technology has been validated at one of the top cyber test centers within the Alliance."

      Every selected startup also receives €100,000, but Hirani-Driver emphasizes that the funding is not the primary benefit. "The true value of our program lies in connecting those startups with end-users, mentors, and test centers," she says. "I want them to receive some funding, complete the program, and remain active in our ecosystem. Our success is defined by sustaining those innovative ideas, helping them grow, and ultimately facilitating their direct delivery of technology to our forces."

      A varied range of startups have successfully moved through the programs, including Goldilock’s cyber defense system, Lithuanian startup Astrolight