Nicola Sinclair, a veteran of the British air force, has launched Twin Track Ventures, a new solo GP fund targeting dual-use technology. The fund announced an initial close of $6.6 million, backed by the NATO Innovation Fund and Allocator One. With a final target of $13.3 million, the firm will invest in early-stage startups across NATO member countries.
A Strategic Focus on Dual-Use Innovation
Twin Track Ventures focuses on startups with strong commercial viability, avoiding over-reliance on military contracts. Sinclair, drawing on two decades of experience, is cautious about announced defence spending, which often fails to materialize as projected. This strategy ensures portfolio companies can thrive in the open market, de-risking the investment from unpredictable procurement cycles.
The fund's scope extends beyond conventional defence hardware to foundational technologies with broad applications. Key areas of interest include compute, communications, sensors, and supply chain innovations in manufacturing, materials, and energy. This approach allows the firm to tap into diverse deeptech opportunities that can serve both civilian and security needs.
Investment Structure and Portfolio
The firm plans to build a concentrated portfolio of approximately 25 pre-seed and seed-stage companies. Twin Track Ventures will deploy capital through initial cheques of up to $666,000, providing crucial early-stage funding. This structure is designed to offer meaningful support to founders navigating the initial phases of product development.
Since beginning fundraising 18 months ago, the fund has already demonstrated momentum by making five investments. One notable portfolio company is Uplift 360, a UK-based startup developing energy-efficient methods for breaking down materials. This early activity signals a proactive approach to deploying capital into promising ventures within its target sectors.
Navigating the Defence and Deeptech Landscape
Sinclair believes the timing is opportune for a fund dedicated to this sector, despite a competitive market. She points to major structural changes in how defence organizations contract with suppliers, making the industry more accessible to innovative startups. These shifts are creating new pathways for agile companies to engage with a traditionally slow-moving customer base.
The fund's strategy directly addresses the challenges inherent in its focus areas. Sinclair acknowledges that defence procurement is difficult, while deeptech startups often struggle to gain early customer traction. By investing in companies with both commercial and defence potential, Twin Track aims to offset these hurdles across a company's lifecycle.
A Unique Position in European Venture Capital
As a solo General Partner, Nicola Sinclair brings 18 years of direct experience from the British air force to venture capital. This deep domain expertise provides her with a unique perspective on the operational needs and procurement intricacies of the defence sector. Her background offers a distinct advantage in identifying and mentoring startups capable of navigating this complex environment.
Sinclair's entry is also notable as she joins a small number of female venture capitalists in the defence technology space. Her presence marks a significant step toward greater diversity in a traditionally male-dominated field. This move aligns with a broader trend of new, specialized solo GPs emerging within the European venture ecosystem.
Twin Track Ventures enters the European market as a specialized and strategically positioned firm ready to capitalize on the dual-use technology sector. With an initial $6.6 million secured and a clear investment thesis, the fund is poised to support a new generation of innovators. Under Nicola Sinclair's guidance, the firm aims to bridge the gap between commercial deeptech and critical defence requirements.