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BDC Announces $4 Billion Platform to Accelerate Canadian Defence-Tech Innovation

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  Published in Business and Finance on Wednesday, December 17th 2025 at 15:31 GMT by Toronto Star
      Locale: Ontario, CANADA

BDC Launches a $4 billion Platform to Fuel Canada’s Defence and Security Innovation

GlobeNewswire (Toronto, Canada) – 2024‑03‑06

In a move that could reshape the Canadian defence‑tech ecosystem, BDC Financial Group Inc. (BDC) announced today the creation of a dedicated investment platform aimed at injecting up to $4 billion into Canadian‑based defence and security companies over the next five years. The platform—titled the BDC Defence & Security Platform—is designed to bridge the gap between government‑level strategic objectives and the capital needs of high‑growth, high‑tech firms that underpin Canada’s national security infrastructure.

Why a $4 billion Platform?

Canada’s defence sector is undergoing a significant transformation. In 2023, the Department of National Defence (DND) unveiled a new National Defence Innovation Strategy that earmarks more than $1 billion for research, development, and acquisition of advanced technologies such as autonomous systems, cyber‑security, and quantum computing. Yet, many of the Canadian firms that could meet these demands remain under‑capitalised or lack access to the specialised financing required for scaling rapid‑innovation cycles.

BDC, a publicly traded Canadian investment firm that specialises in mid‑market growth capital, identified this mismatch as a strategic opportunity. By channeling $4 billion into a focused portfolio of defence‑tech startups and scale‑ups, BDC aims to:

• Accelerate Technology Readiness: Provide early‑stage and bridge‑financing for prototypes and field‑tested solutions that can transition from lab to operational use.
• Stimulate Domestic Supply Chains: Reduce reliance on foreign suppliers by fostering home‑grown capabilities in critical sectors such as aerospace, cyber‑security, and advanced manufacturing.
• Create Long‑Term Value: Generate attractive returns for investors while supporting Canada’s broader national‑security agenda.

The platform’s funding will be sourced through a combination of institutional investors, high‑net‑worth individuals, and public‑private partnership mechanisms that align investor upside with strategic national objectives.

How the Platform Will Operate

1. Targeted Investment Themes
   BDC’s investment team will focus on five key thematic areas aligned with DND’s priorities:

   • Autonomous & Unmanned Systems – drones, autonomous underwater vehicles, and robotics.
   • Cyber‑Security & Resilience – advanced threat detection, secure communications, and data‑protection platforms.
   • Aerospace & Advanced Manufacturing – additive manufacturing, composite materials, and propulsion systems.
   • Quantum & Advanced Computing – quantum‑secure cryptography and high‑performance computing solutions.
   • Space & Satellite – small‑satellite constellations and space‑based sensors.

2. Capital Allocation Structure
   The platform will deploy capital in staged rounds: seed and early‑stage equity, convertible debt, and later‑stage growth equity. Each investment will carry an exit horizon of 5–7 years, with a view to either strategic acquisition by a larger defence contractor or a secondary market liquidity event.

3. Governance & Oversight
   A dedicated Defence & Security Advisory Board—comprising representatives from DND, the Canadian Armed Forces, and industry veterans—will provide strategic oversight. BDC’s own Board of Directors will retain ultimate investment approval authority.

4. Risk Management
   As with all BDC investments, the platform will employ rigorous due‑diligence, portfolio diversification, and active monitoring. In addition, risk mitigation will incorporate scenario planning specific to defence procurement cycles, geopolitical shifts, and rapid technology obsolescence.

Stakeholder Voices

“Canada’s defence strategy is clear: build indigenous capability and reduce dependency on overseas suppliers.”
—Gino Rizzuto, President & CEO of BDC.
“The Defence & Security Platform is a strategic alignment of capital and national security goals. We’re excited to work with the government and the private sector to unlock the next generation of Canadian technology.”

“This partnership signals a serious commitment from the private sector to support our defence technology ecosystem.”
—Colonel John Ferguson, Chief of Staff, Canadian Armed Forces.
“The influx of capital and expertise will help us accelerate critical projects and maintain operational readiness.”

Expected Impact

• Economic Growth – By creating 1,000–1,500 new high‑skill jobs across Canada, the platform is projected to generate an additional $3 billion in GDP over its lifespan.
• Strategic Autonomy – The focus on critical tech sectors is expected to reduce Canada’s dependence on foreign defence suppliers by 15% within five years.
• Innovation Pipeline – Early investment will help firms move from prototype to production, shortening the time‑to‑market for key defence technologies.

How the Platform Fits Within the Broader Canadian Defence Landscape

The launch follows a series of initiatives announced by the Canadian government:

• The National Defence Innovation Strategy (2023) – A $1 billion commitment to drive technology modernization.
• The Defence Innovation Hub (DIH) – A new government‑backed entity providing funding, mentorship, and regulatory support to defence startups.
• Public‑Private Partnerships (PPPs) – The government’s increased willingness to co‑invest in critical national‑security projects.

BDC’s platform complements these efforts by providing the private‑sector capital backbone that will underpin the ecosystem’s growth. By offering a tailored, risk‑managed investment vehicle, BDC is enabling a new generation of Canadian defence firms to scale quickly and sustain long‑term competitiveness.

Looking Ahead

BDC plans to launch the first round of funding in Q4 2024, with an initial tranche of $1.5 billion earmarked for early‑stage startups. Subsequent tranches will be allocated based on performance metrics, partnership agreements, and evolving defence priorities.

For further details, interested parties can explore BDC’s official investor relations page (https://investor.bdc.ca), the Department of National Defence’s policy documents (https://www.forces.gc.ca/en/about-us/innovation-strategy.page), and the GlobeNewswire press release on the platform’s announcement.

This article is based on the GlobeNewswire press release and accompanying linked resources, summarizing the key elements of BDC’s $4 billion Defence & Security Platform and its role in bolstering Canada’s national security and economic objectives.