The Business Development Bank of Canada is putting money behind specific Canadian companies rather than simply promising to do so. At CANSEC on May 27, BDC announced new investments through its StrongNorth Fund in two Canadian dual-use technology firms, alongside a new partnership designed to help high-potential companies scale into defence markets.
The investments
The two companies receiving StrongNorth investment are Photonic Inc. of Vancouver and Lastwall of Fredericton. BDC did not disclose the value of either investment.
Photonic is a quantum technology company developing scalable quantum computers and networks. Quantum computing is increasingly relevant to defence applications including cryptography, secure communications, and complex simulation. Lastwall works with defence and government clients on secure identity management, protecting against cyberattacks, credential theft, and emerging quantum threats to operational integrity and mission readiness.
Both sit at the intersection of cybersecurity and emerging technology, which BDC says is where it is seeing the strongest concentration of defence investment activity. The bank notes that capital is concentrating around capabilities already validated in operational or commercial environments. Companies with proven technologies already deployed in real-world settings are best positioned to move quickly into defence markets.
Scaling pipeline
Alongside the investments, BDC announced a partnership with the UBC Sauder School of Business Scale Up Program to help high-potential Canadian companies build procurement readiness, enterprise adoption, and export capability into allied defence supply chains. The partnership reflects a recognition that financing alone is not the bottleneck. Getting Canadian companies into defence procurement pipelines requires navigation support and commercial preparation that most SMEs do not have in-house.
BDC Vice President of Defence Strategy Peter Dawe said sovereignty depends on the ability to build and scale real capabilities: companies that can deliver, secure critical systems, and operate in complex environments.
What BDC is seeing
Beyond cybersecurity and software-driven systems, BDC is observing growing investment activity in space, training and simulation, and specialised manufacturing, signalling a broader build-out of Canada’s defence industrial base. The bank is also seeing primes increasingly ask existing Tier 1 and Tier 2 suppliers to retool and deliver new capabilities, with established suppliers preferred because they are trusted, qualified, and able to deliver at speed. The near-term opportunity, in BDC’s assessment, is to strengthen existing suppliers while connecting new entrants into established defence supply chains.
Where BDC stands
BDC launched its Defence Platform in December 2025 and expanded it to $6 billion in March 2026 after strong early uptake. The StrongNorth Fund is its venture capital arm focused on dual-use technology. The May 27 announcement is the first time BDC has named specific portfolio companies from the fund, giving the market a concrete signal of where it sees defence technology opportunity in Canada.
