BDC earmarks $1B from Defence Platform for funds and dual-use startups

MONTREAL — At the Canada Investment Summit on Tuesday, the Business Development Bank of Canada detailed how it will put $1 billion of its $6 billion Defence Platform to work: a new $500 million Defence Fund for venture, growth and private-equity vehicles focused on defence and dual-use tech, plus a $200 million top-up that lifts its StrongNorth direct-investment fund from $300 million to $500 million.

The Defence Fund will back Canadian and allied-nation funds with strong Canadian exposure, aiming to crowd private capital into strategically important technologies. Its first commitment is into Intrepid Growth Partners’ inaugural US$525 million fund for high-growth AI companies across Canada, the UK, the US and Europe. StrongNorth, led for early-stage deep tech with defence or dual-use applications, will keep backing Canadian firms in AI, autonomy, cyber, secure communications, space, ISR, advanced materials and energy.

“With its Defence Platform, BDC is using its capital and expertise to help these companies innovate, scale and reach new markets, while helping build a stronger investment ecosystem for Canada’s defence and dual-use sector,” President and CEO Isabelle Hudon said. Industry Minister Mélanie Joly and Defence Minister David McGuinty framed the move as attracting private capital, scaling Canadian firms and reinforcing economic sovereignty. The platform launched at $4 billion after Budget 2025’s defence spending push and was expanded to $6 billion in March.

Public development-bank equity that only arrives after cheques clear is an inflation story about industrial capacity: dual-use factories and software that never get funded leave Canada importing capability at wartime prices.