BDC Allocates $1 Billion to Canadian Defence Sector

The Business Development Bank of Canada (BDC) announced it will deploy $1 billion from its existing $6 billion Defence Platform to strengthen Canada's defence and dual-use technology sector. Of this amount, $500 million will be allocated to funds focused on defence and dual-use technologies, with an additional $200 million increasing the StrongNorth fund.

These allocations are part of BDC's broader $6 billion Defence Platform, which provides Canadian defence and dual-use companies with financing, investment, and advisory services to foster growth and global competitiveness. The new deployments clarify how BDC intends to utilize capital through both direct investments in companies and indirect investments via funds supporting strategically important technologies.

"Canadian entrepreneurs are developing technologies that are increasingly vital to Canada's security, resilience, and economic growth," said BDC President and CEO Isabelle Hudon. "Through its Defence Platform, BDC is leveraging its capital and expertise to help these companies innovate, scale, and reach new markets, while helping to build a stronger investment ecosystem for Canada's defence and dual-use sector."

The Defence Fund will invest $500 million in venture capital, growth equity, and private equity funds focused on defence and dual-use technologies. Key areas of focus include artificial intelligence, cybersecurity, space technology, advanced materials, and quantum technologies. Furthermore, the StrongNorth fund, which supports early-stage deep technology companies with defence-focused or dual-use applications, will be increased by $200 million.