December 10, 2025
•NATOAlliance's innovation programme chooses 4% of applicants as defence tech competition intensifies
NATO's Defence Innovation Accelerator for the North Atlantic announced its largest cohort to date on December 10, selecting 150 companies from 3,700 applications to participate in its 2026 programme.
The 4% acceptance rate represents the third consecutive year of expansion for DIANA, which launched in 2023 with 44 companies from 1,300 applications. The 2024 cohort comprised 75 companies, while 72 companies were selected from 2,600 applications in 2025.
Funding structure
Selected companies will receive €100,000 in non-dilutive funding for a six-month Phase 1 development period, with access to more than 200 NATO test centres across 32 member nations. Companies advancing to Phase 2 secure an additional €300,000. Based on 2024 data, approximately 23 per cent of Phase 1 participants progress to the second phase.
Canada leads selections
Canada secured 22 positions in the cohort, representing nearly 15 per cent of selections. Notable Canadian companies include:
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Avivo Biomedical - technology to convert blood types to universal blood
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SDQ Solutions - quantum-resistant satellite navigation systems
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Hydrogen in Motion - lightweight hydrogen storage for unmanned systems
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GBatteries Energy Canada - cold-weather battery charging systems
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GlobVision - space situational awareness platforms
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Alchemy - nanoparticle-based thermal camouflage
Ten priority capability areas
The programme addresses capability gaps across:
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Energy and power systems
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Advanced communications technologies
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Contested electromagnetic environments
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Biotech and human resilience
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Critical infrastructure and logistics
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Extreme environment operations
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Maritime systems
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Space operations
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Autonomy and unmanned systems
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Decision-making technologies
The emphasis on energy, communications and autonomous systems reflects operational priorities emerging from the conflict in Ukraine, where rapid iteration and battlefield testing have accelerated technology development cycles.
Geographic distribution
DIANA operates across 16 accelerator sites throughout NATO member states. The geographic distribution aims to build defence technology capacity beyond traditional hubs in the US, UK, France and Germany. The 2024 cohort included 10 companies from Central and Eastern European nations.
Valley of death challenge
Defence technology startups face extended development timelines of three to seven years before generating revenue from government customers. The "valley of death" between initial funding and procurement contracts has contributed to high failure rates despite technical promise.
More than 230 defence technology companies have launched in Europe since 2022, according to industry data. However, many struggle to scale beyond Series A funding rounds due to venture capital hesitation around defence sector regulatory complexity and extended sales cycles.
Previous cohort participants from Estonia, including companies such as GaltTec and Goldilock, have cited accelerated access to military procurement officials as a primary programme benefit beyond direct funding.
What happens next
Programme activities commence in January 2026. By mid-2026, NATO will select companies advancing to Phase 2 based on technical feasibility demonstrations and military utility assessments.
The trajectory from 44 companies in 2023 to 150 in 2026 signals NATO's strategic shift toward distributed innovation and non-traditional defence contractors as sources of military technological advantage.
The complete list of selected companies is available at diana.nato.int