Empowering Innovation: OTB Ventures to Deploy $185M in European Deep Tech with NATO Innovation Fund Support

The European deep tech landscape witnesses a significant boost with OTB Ventures closing a $185 million fund dedicated to investments in the sector. This move underlines the growing interest of both public and private capital investors in Europe’s deep tech potential.

OTB Ventures’ Investment Strategy:

• Focus on Series A Stage: The fund primarily targets the Series A stage, with a possibility of allocating up to 10% for seed funding and over 50% for follow-on investments.
• European Investment Fund Backing: Supported by the European Investment Fund (EIF) and the European Union under the InvestEU Fund, OTB Ventures’ early-growth fund signifies a strong collaboration between public and private sectors.
• Alignment with EIF’s Investment Thesis: OTB co-founder Adam Niewiński highlights EIF’s evolving focus on innovative and disruptive technologies emerging from Europe, emphasizing the continent’s potential to lead global tech innovation.

New Support from NATO Innovation Fund (NIF):

• Intersection of Deep Tech and Defense: NIF’s entry into OTB’s capital table marks a significant milestone, as it begins deploying its €1 billion fund at the intersection of deep tech, defense, security, and resilience.
• Mission Alignment: NIF’s managing partner Andrea Traversone emphasizes the alignment of OTB’s deep tech verticals, including space tech, enterprise automation, AI, cybersecurity, and fintech infrastructure, with NIF’s mission and investment themes.

OTB’s Deep Tech Verticals:

• Space Tech: Exploring advancements in space technology.
• Enterprise Automation and AI: Leveraging AI for enterprise solutions.
• Cybersecurity: Addressing evolving cybersecurity challenges.
• Fintech Infrastructure: Innovating in fintech with advanced technologies like AI-enabled anti-money laundering.

Investment Portfolio:

• OTB Ventures has already made several investments from the fund, including German startups KYP.ai and Semron, focusing on productivity platforms and innovative chip development, respectively.

Addressing Dual-Use Technology Concerns:

• OTB’s co-founder Marcin Hejka clarifies that the integration of civilian-rooted technologies into defense sectors should not be equated with investing in weaponry, emphasizing the peaceful and innovative applications of deep tech.

Geographic Scope and Partnerships:

• Headquarters in Amsterdam and Warsaw: OTB’s strategic locations align with the geographic scope of partnerships, facilitating access to Central and Eastern European deal flow.
• Contributions to NATO Innovation Fund: OTB’s roots in the Netherlands and Poland, both contributors to NIF, provide strategic advantages in accessing NIF-backed opportunities.

OTB’s Competitive Edge:

• Leveraging “an unfair advantage in accessing Central and Eastern European deal flow,” OTB’s new fund secures backing from prominent CEE entrepreneurs, enhancing its investment capabilities and network.