At the Canada Investment Summit 2026 in Montreal, the Business Development Bank of Canada (BDC) announced how it will deploy $1 billion in investments under its existing $6 billion Defence Platform. The plan allocates $500 million to funds focused on defence and dual-use technologies, plus an additional $200 million to the StrongNorth Fund. These allocations are designed to attract private capital and accelerate growth in Canada's defence sector.
Role of the Defence Platform
BDC's $6 billion Defence Platform provides financing, investment, and advisory solutions to Canadian defence and dual-use companies. It aims to help these firms grow and compete globally while strengthening the broader investment ecosystem. The newly announced allocations clarify how BDC will deploy capital through direct investments in companies and indirect investments via funds.
A Dual Approach to Capital Deployment
The $1 billion deployment combines direct and indirect investment tools under BDC's existing $6 billion Defence Platform. It includes $500 million for a new Defence Fund and an additional $200 million for the StrongNorth Fund, which now reaches $500 million. The approach is intended to help mobilize private capital at scale while supporting Canadian defence and dual-use companies.
Defence Fund Targeting Venture, Growth, and Private Equity
The $500 million Defence Fund will invest in venture capital, growth equity, and private equity funds focused on defence and dual-use technologies. It will target Canadian and allied-nation funds with strong Canadian exposure, improving access to investment for companies developing strategically important technologies. Key focus areas include artificial intelligence, cybersecurity, space, advanced materials, quantum technologies, and energy systems.
First Commitment to Intrepid Growth Partners
BDC's first investment under the Defence Fund is in Intrepid Growth Partners' inaugural US$525 million fund. This fund invests in high-growth artificial intelligence companies across Canada, the United Kingdom, the United States, and Europe. The commitment reflects BDC's long-term approach of leveraging its balance sheet to crowd in additional ecosystem investors.
StrongNorth Expansion Supports Early-Stage Innovation
The additional $200 million allocation to StrongNorth brings the fund from $300 million to $500 million under the Defence Platform. StrongNorth is BDC's venture capital fund dedicated to early-stage companies developing deep technologies with defence-focused or dual-use applications. Its focus areas include AI, autonomy, cyber, secure communications, space, intelligence, surveillance and reconnaissance, advanced materials, and energy.
Leadership Views on Security and Economic Growth
BDC President and CEO Isabelle Hudon said the Defence Platform helps Canadian entrepreneurs innovate, scale, and reach new markets while strengthening the investment ecosystem. Minister of Industry Mélanie Joly emphasized that the $1 billion investment helps attract private capital and reinforces Canada's long-term economic sovereignty. Minister of National Defence David J. McGuinty added that building more at home turns Canadian innovation into defence capability and supports the Armed Forces.
Alignment with National Defence Priorities
The announced allocations align with Canada's defence and sovereignty priorities by supporting technologies critical to security and resilience. BDC's focus on dual-use sectors is intended to bridge the gap between private innovation and defence capability. By increasing access to capital, the Defence Platform aims to help Canadian firms compete globally and strengthen sovereign industrial capacity.
The announcement at the Canada Investment Summit 2026 clarifies how BDC will deploy capital across direct investments and fund partnerships under its Defence Platform. With expanded funding for StrongNorth and a new Defence Fund, the initiative is designed to attract private capital and accelerate growth in the defence and dual-use sector. It represents a coordinated effort to reinforce Canada's security, economic resilience, and long-term sovereignty.