Business Development Bank of Canada to invest $1 billion in defence tech

The Business Development Bank of Canada (BDC) has announced plans to deploy $1 billion from its broader $6 billion Defence Platform into defence and dual-use technology sectors.

As part of the allocation, $500 million is earmarked for a Defence Fund to invest in venture capital, growth equity, and private equity funds within Canada and allied nations. Additionally, BDC is increasing the capacity of its StrongNorth Fund from $300 million to $500 million to support direct investments in early-stage deep tech companies. The fund targets sectors including artificial intelligence, cybersecurity, space, quantum technology, and autonomous systems.

One of the initial investments involves a $525 million fund managed by Intrepid Growth Partners, which focuses on high-growth AI companies in Canada, the UK, the US, and Europe. This initiative aligns with Canada’s Defence Industrial Strategy to bolster sovereign capabilities in areas such as aerospace, digital systems, and specialized manufacturing.