BDC’s StrongNorth Fund invests in Photonic and Lastwall, and partners with initiatives like UBC Sauder School of Business’ Scale Up Program.
The Business Development Bank of Canada (BDC) announced new investments in Canadian dual-use innovators through its StrongNorth Fund, alongside a partnership with UBC Sauder School of Business’ Scale Up Program, as it continues deploying its Defence Platform launched in December 2025.
“We’re at a moment where Canada’s defence and economic sovereignty are increasingly shaped by technology,” said Peter Dawe, Vice President, Defence Strategy, BDC. “But ultimately, sovereignty depends on our ability to build and scale real capabilities companies that can deliver, secure critical systems, and operate in complex environments. Through StrongNorth, we’re backing Canadian firms that are turning quantum and identity security into real‑world defence capability focused on technologies that are ready to deploy, while building the next wave of capability behind them.”
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As countries face rising cyber threats, these investments highlight how Canada is building defence capability across critical technologies. They also show how that capability is beginning to translate into real‑world applications, with companies advancing strengths across multiple critical technology domains and forming a broader national base of solutions ready for deployment.
- Photonic (Vancouver, BC) – Photonic Inc. is a leading quantum technology company developing scalable quantum computers and networks.
- Lastwall (Fredericton, NB) – Lastwall works with defence and government teams to maintain operational integrity and mission readiness through secure identity management, protecting against cyberattacks, credential theft, and emerging quantum risks.
Alongside these investments, BDC is partnering with UBC Sauder School of Business’ Scale Up Program to help high-potential Canadian companies scale into defence and dual-use markets, strengthening procurement readiness, enterprise adoption, export growth, and integration into allied supply chains.
Insights from the front lines of defence investing
BDC is seeing a strong concentration of investment in digital domains particularly cybersecurity and software‑driven systems reflecting where defence demand is most immediately actionable. At the same time, a smaller but growing share of investment is emerging in areas like space, training and simulation, and specialized manufacturing, signalling a broader build‑out of Canada’s defence and security capabilities.
BDC is observing that capital is concentrating around capabilities that are already validated in operational or commercial environments. Companies with proven technologies particularly those already deployed in real-world settings are best positioned to move quickly into defence markets.
BDC is also observing that primes are increasingly asking existing suppliers particularly Tier 1 and Tier 2 firms integrated into their supply chains to retool and deliver new capabilities. These companies are often preferred because they are trusted, qualified, and able to deliver at speed.
The near-term opportunity is clear: strengthen existing suppliers and connect new entrants into established defence supply chains.
Quotes
“We proved our model in the world’s most demanding federal market. We earned FedRAMP Moderate Authorization, secured U.S. government systems, and built a platform for the realities of modern cyber warfare. Now, we’re bringing those trusted capabilities home to help strengthen Canada’s cyber resilience at a defining moment for national security.”
- Karl Holmqvist, Founder and CEO, Lastwall
“This financing reflects strong global conviction in Photonic’s approach to commercial‑scale quantum computing and its potential to deliver transformative impact across industries. As we scale our platform and deepen partnerships globally, we are also strengthening Canada’s position in a technology that will shape the future of computing.”
- Don Mattrick, CEO, Photonic Inc.
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