Defence Innovation Fund

Defence Innovation Fund

Supports United Kingdom defence startups with rapid MoD contract opportunities in autonomy, robotics, and control systems.

The Defence Innovation Fund is a £20 million procurement programme run by the UK Ministry of Defence, announced in January 2026, designed to accelerate contracts with small British startups that have little or no prior MoD business. It sits within the broader MoD commitment to spend £7.5 billion with SMEs and is administered through UK Defence Innovation (UKDI) — the successor body to DASA, which reached Full Operating Capability in July 2026. Software, artificial intelligence, robotics, and autonomy companies are the programme's stated priority cohorts, with new 'Lite' Enterprise Agreements introduced specifically to lower the procurement barrier for software firms.

Access to the fund is not via a standalone application portal. Startups enter through UKDI competition cycles — primarily Themed Competitions (typically £100,000–£700,000 per award, with pools of £100,000–£3 million per cycle) and, once reopened, the Open Call for Innovation. The Open Call was paused from January 2026 pending UKDI full operating capability and is expected to resume after July 2026. The Office of Small Business Growth, operating within UKDI, also provides a route for startups seeking to navigate the MoD supplier landscape for the first time.

Companies aiming to compete successfully should register on the UKDI mailing list and monitor the UKDI competitions page, as each Themed Competition carries its own closing date, scope statement, and eligibility conditions. UK registration at Companies House is required; international entities need a UK-based legal presence and UK-based project activity. Per-award size under the Defence Innovation Fund specifically has not been published at the programme level — the £20 million figure represents the total committed pool, not a per-award cap.