BDC boosts Defence Platform up to $6B after providing $92M in financing since late December, names StrongNorth Fund leader

Press Release

(MONTREAL) – March 12, 2026 – The Business Development Bank of Canada (BDC) today announced a major expansion of its Defence Platform up to $6 billion, building on strong early demand to support Canadian small- and medium-sized enterprises (SMEs) seizing opportunities in the defence sector.

“Canada’s economic and national sovereignty interests are converging at an incredible pace. BDC wants to strengthen the defence ecosystem with a clear, two-layer approach—direct financial solutions for businesses, as announced in December, and indirect solutions that offer more targeted support for the broader ecosystem that enables those entrepreneurs. That’s the focus of BDC’s second layer that we will be developing in the coming months,” said Peter Dawe, Vice-President, Defence Strategy, who leads BDC’s Defence Platform. 

This second layer of support aims to connect Canadian SMEs and startups with priority defence and sovereignty needs in Canada and allied countries, focusing on targeted initiatives and partnerships. This includes working with incubators, accelerators, universities, and other organizations that support defence-focused businesses, connecting them with mission owners, buyers and key ecosystem stakeholders, and helping companies test and scale their technologies.

Early results and new partnerships

As part of an update on the rollout of its Defence Platform, BDC reported that, since its launch in December, $91.7 million in financing has already been provided to 16 businesses. BDC also reported 16 businesses have engaged its advisory services for defence-related opportunities.

“We’re seeing a strong, high-quality pipeline of innovative businesses. Even as we build out the team, we’re delivering quickly and getting strong feedback from key players in the sector. It’s a good start, but there’s so much more work to be done as the real peak demand lies ahead in 2027 and 2028, and we’re building now to be ready,” said Dawe.

BDC is also exploring new partnerships to reach more entrepreneurs and recently announced it is co-developing a strategic forum with the Chamber of Commerce of Metropolitan Montreal on April 2 focused on strengthening Canada’s defence and security ecosystem.

A new lead for the StrongNorth Fund

BDC also announced a key hire within its Defence Platform. Announced in December, BDC’s StrongNorth Fund will be a new $300-million venture capital fund dedicated to supporting Canadian early-stage startups developing deep technologies with defence-focused or dual-use applications or strategies.

Peter Suma will lead the fund as Managing Partner. Mr. Suma brings more than 25 years of experience in deep tech investing, company building, and senior leadership across defence relevant technologies, including artificial intelligence (AI), robotics, semiconductors, and advanced systems.

“Our focus is deliberately practical: investing in and scaling homegrown defence and dual-use technologies that will shape the country’s future,” said Peter Suma, Managing Partner of the StrongNorth Fund at BDC Capital. “The fund will be flexible and mission driven, enabling us to support a strong, high-quality pipeline and ensure our capital delivers tangible, long-term value and impact.”

The challenge for Canadian entrepreneurs

Canadian entrepreneurs are central to Canada’s defence and security ecosystem—but face distinct challenges at different stages of growth. Early‑stage startups developing defence‑focussed and dual‑use technologies often stall in the “valley of death” between R&D and commercialization, where risk is high and investment is scarce. As companies scale, many SMEs then face difficulties navigating defence requirements, integrating into supply chains, and managing long procurement cycles that can stretch five to eight years or more, creating cash‑flow pressure and uncertainty.

Why BDC’s Defence Platform can help

BDC’s Defence Platform is designed specifically for these realities. It provides patient, risk tolerant capital and specialized expertise—combining financing, advisory services, and investment—to help businesses bridge critical gaps and more effectively navigate long procurement timelines and complex processes. By establishing a strong baseline for the sector, the Platform also aims to help shift market perceptions and “crowd-in” private investment. The expected result is more Canadian firms able to scale, integrate into global defence supply chains, and contribute to Canada’s economic resilience and sovereignty. 

---

About BDC, Canada’s bank for small- and medium-sized business owners

BDC focuses on small- and medium-sized business owners, providing them financing, investment, and advice. As Canada’s development bank, we also support entrepreneurs who don’t fit the traditional mold working with a network of partners and help develop underserved markets to unlock economic potential. Our mission is to build strong, resilient businesses that drive Canada’s economic growth. BDC is a perennial Canada’s Top 100 Employer and B Corp certified.

Learn more at bdc.ca