Dual-use innovation, which means technologies that can be used for both everyday needs and military purposes, is quickly becoming a hot topic in the startup scene in Europe. These innovations include things like artificial intelligence, robots, cybersecurity, self-operating systems, and new materials. Investors and government leaders are paying more and more attention to these technologies. The European Commission has highlighted how important dual-use technologies are for Europe to maintain its technological independence, safety, and ability to compete.
For startups in the Adriatic and Balkan areas, they face a big question: how can they find the right funding to grow? Europe now has various options available, including grants that don't give away ownership and venture funds that require giving up shares. Here’s a helpful guide.
Grants & Public Programs
The European Union has placed dual-use innovation at the forefront of its strategic priorities.
The European Defence Fund (EDF) provides major support to research along with development and prototype creation for defence technology projects. The EDF provides funds to help SMEs and startups that show potential for international market expansion. The program supports various defense-related activities which include initial feasibility assessments and advanced prototype evaluations and system integration across military and civil domains.
Startups developing transformative technologies obtain funding through EIC's grant programs which also includes equity investment to support EDF initiatives. The EIC provides non-dilutive financing to promising firms while offering equity investment to help Deep-tech firms overcome their "valley of death" financing challenges.
Several European nations including Croatia and Slovenia and Greece have implemented grant programs dedicated to frontier technologies. Early-stage businesses choose these grants because they have quicker application processes than EU-level funding programs. These grant programs require complete preparation along with strict adherence to technical reporting standards for non-dilutive funding.
NATO DIANA
Perhaps the most exciting initiative for dual-use founders is NATO’s DIANA accelerator. Its mission is simple: connect innovators with defense and security needs while ensuring scalability in civilian markets. DIANA offers:
Direct funding for startups.
Access to NATO testing facilities across Europe.
A powerful international network of partners and end-users.
Recent expansions include new test centers in Central and Eastern Europe, notably in Bulgaria and Hungary, making the program increasingly relevant for innovators from the wider Balkan region.
EIF-Backed Venture Funds
Beyond grants, equity funding remains essential for scaling. The European Investment Fund (EIF) plays a pivotal role by co-investing with local venture capital funds. This mechanism reduces risk for investors and channels more private capital into bold, deep-tech projects.
Across Slovenia, Croatia, and Serbia, EIF-backed funds are now actively scouting for dual-use innovation, offering startups both capital and strategic guidance.
Regional & Alternative Funding
Complementing these European initiatives are regional sources:
Crowdfunding platforms are emerging as viable tools, particularly for hardware and frontier technologies.
National development banks and sovereign funds in the Balkans provide early-stage and growth financing for strategic industries.
Private venture funds with deep-tech theses are showing increasing interest in dual-use startups, driven by global security and tech trends.
Takeaway
Never has the terrain for dual-use innovation funding in Europe been morefertile. Startups today profit from a layered environment including regional alternatives, NATO-backed accelerators, EIF-supported venture funds, and grants. For founders in the Adriatic and Balkans, this represents a rare moment when policy, capital, and technology converge to create unprecedented opportunities. The question is no longer whether funding is available, but whether startups in the region are ready to seize it.