B.C. pension fund backs biggest early stage defence tech fundraise in Canada
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The future of every air force is pairing manned systems, such as aircraft operated by humans, with unmanned autonomous vehicles like drones, said Dominion Dynamics CEO Eliot Pence. Photo by COLE BURSTON/AFP via Getty Images/Postmedia filesArticle contentOttawa-based defence technology startup Dominion Dynamics Inc. has secured $21 million in funding in the largest early stage fundraise in Canada as investor interest in defence and dual-use technology surges.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentDominion Dynamics is focused on building sensing systems designed for Arctic military and civilian operations. The funds will help the startup further deploy its sensing network, expand its Canadian footprint and develop its drones that fly alongside fifth-generation fighter jets such as F-35s.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThe fundraising round was led by Toronto’s Georgian Partners Growth LP, which invests in high-growth enterprise software companies. Other investors include British Columbia Investment Management Corp., Deer Management Co. LLC (Bessemer Venture Partners) and some smaller angel investors.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“Defence is no longer just about hardware; it is about software, data and speed,” Margo Wu, lead investor at Georgian Partners, said in a release on Monday. “In our view, Dominion Dynamics represents the future of the Canadian ecosystem: deep tech, dual use and mission critical. We are backing a team that is fundamentally reimagining how Canada and its allies protect their interests.”Article contentDominion Dynamics founder and chief executive Eliot Pence said that the future of every air force is looking to pair manned systems, such as aircraft operated by humans, with unmanned autonomous vehicles like drones.Article content“This is critical for our ability to project power across the Arctic,” he said.Article content Eliot Pence, founder and chief executive of Dominion Dynamics, which plans to triple its headcount this year. Photo by Dominion DynamicsArticle contentThe company is currently building a simulated environment to test the concept against different threat scenarios and trying to build a prototype in the next few months. It has already conducted successful field trials of its sensing software in northern Ontario and is now testing it in the Yukon.Article contentArticle contentDominion Dynamics plans to triple its headcount up to 75 staff this year, recently opened a development office in Toronto and already has a lab in Kingston, Ont. Late last year, it signed a lease for a 25,000-square-foot factory in Kanata, Ont., which will open in March 2026, Pence said.Article contentRead More Canadian quantum computing company raises $180 million from investors including RBC, Telus Mark Norman: $80 billion in new defence spending is laudable, but the devil's in the execution Article contentIts team currently includes Canadian Armed Forces veterans, while founder Pence led United States-based defence tech company Anduril Industries Inc.’s global team for four years.Article contentOttawa has promised $6.6 billion over five years for defence spending and is set to release its much-anticipated Defence Industrial Strategy. Earlier this month, Canada announced more than $240 million to support Canadian small and mid-sized businesses developing dual-use technologies.Article contentRising geopolitical tensions and advancements in deep tech such as artificial intelligence and quantum computing have helped spark a recent investment boom in defence tech, a sector long viewed as taboo by Silicon Valley and venture capitalists (VCs). Global funding for VC-backed defence startups hit a record US$7.7 billion in 2025, according to Crunchbase Inc. data.Trending Canadian investors: Is your portfolio up to a new world order? Investor Subscriber only. Hole left by Hudson's Bay's demise will be hard to fill Subscriber only Commercial Real Estate 'Toronto is on fire': Canada's biggest office market seeing surge in demand as workers return Real Estate Posthaste: World 'on a precipice' as 'geoeconomic confrontation' risk soars, warns WEF News Trump links Greenland threats to Nobel Peace Prize snub News Article contentBusiness Development of Canada in December announced it would allow investors to fund companies working on military products as well as a $4-billion platform to support Canadian defence tech firms. Last April, Toronto asset manager Kensington Capital Partners Ltd. acquired a VC business to set up a defence tech VC platform.Article contentDominion Dynamics launched in October 2025 and has raised $25 million to date.Article content• Email: ylau@postmedia.com Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Canadian investors: Is your portfolio up to a new world order? Investor Subscriber only. Hole left by Hudson's Bay's demise will be hard to fill Subscriber only Commercial Real Estate 'Toronto is on fire': Canada's biggest office market seeing surge in demand as workers return Real Estate Posthaste: World 'on a precipice' as 'geoeconomic confrontation' risk soars, warns WEF News Trump links Greenland threats to Nobel Peace Prize snub News