Programs for Defense Startups Programs for Defense Startups
How to design a program and its mentoring for defense tech startups.
What this presentation covers
What this presentation covers
What this presentation covers
NATO’s defense accelerator
DIANA runs more challenges each year
DIANA ran 3 pilot challenges in 2023, 5 in 2024 and 10 in 2025.
- 2023 33
- 2024 55
- 2025 1010
What selected startups get
Grants, test sites and military users
DIANA gives non-dilutive grants and access to 16 accelerator sites and over 200 test centers.
- Non-dilutive grants
- 16 accelerator sites
- 200+ test centers
- Mentor network
- Trusted investors
- Allied end users
Dual use from the start
Pair defense with a civilian market
DIANA seeks technology aimed at commercial markets that can also serve defense.
- Commercial market income while defense deals take shape
- Defense and security the second use
The European Defence Fund
Most EU defense money funds development
The fund holds €7,953 million for 2021 to 2027, two thirds for development.
- Research €2,651M€2,651M
- Development €5,302M€5,302M
Why consortia want startups
Small firms raise a consortium’s funding rate
EU development grants pay a higher rate when SMEs carry at least 10% of costs.
- SMEs carry 10% of costs higher funding rate
- SMEs from another member state weigh double
- Disruptive technology 4 to 8% of the fund
The US SBIR phases
Feasibility first, then R&D, then market
SBIR funds the first two phases; the market phase needs other money.
- Phase I concept, 6 to 12 months
- Phase II R&D, up to 2 years
- Phase III market, no SBIR funds
Early grants and investors
An early grant can draw investors
In a US energy study, an SBIR award roughly doubled the chance of venture capital.
Export control
Sharing technology abroad can be an export
Under EU law, emailing controlled software or technology outside the EU counts as an export.
- Software and technology are items too
- Email or upload outside the EU is an export
- Describing it on a call can count
- Listed items need an authorization
Security clearance
A clearance needs a sponsor
In the US, a company cannot apply for its own facility clearance.
- Can a startup apply for its own clearance? No. A government agency or a cleared contractor sponsors it.
- When can sponsorship start? At any contract stage, even during the bid.
The mentor pool
Mentors who know how defense buys
DIANA’s network includes scientists, engineers, end users and procurement experts.
- Scientists and engineers technical review
- Military end users real needs and field tests
- Procurement experts tenders and contracts
- Investors capital that knows defense
Sources
The research behind this presentation
- NATO (2026) Defence Innovation Accelerator for the North Atlantic (DIANA) North Atlantic Treaty Organization, NATO topic page
- European Parliament & Council of the European Union (2021) Regulation (EU) 2021/697 establishing the European Defence Fund, Articles 4 and 13 Official Journal of the European Union, L 170, 12 May 2021, 149-177
- European Parliament & Council of the European Union (2021) Regulation (EU) 2021/821 setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items, Articles 2 and 3 Official Journal of the European Union, L 206, 11 June 2021
- U.S. Small Business Administration (2026) What is the purpose of the SBIR & STTR programs? SBIR.gov, America’s Seed Fund, program tutorial
- Howell, S. T. (2017) Financing innovation: Evidence from R&D grants American Economic Review, 107(4), 1136-1164
- U.S. Department of Defense (2020) National Industrial Security Program Operating Manual (NISPOM), 32 CFR 117.9 Entity eligibility determination for access to classified information Code of Federal Regulations, Title 32, Part 117 (eCFR)
Design for how defense buys
Plan for long buying cycles, export rules and clearances from the first week.