Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInnovationOMERS, BDC back defence startup's record-breaking $139-million fundraiseStill waiting for the procurement reform Ottawa promised via the newly established Defence Investment AgencyLast updated 49 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.This is an artist's rendering of a defence drone. Dominion Dynamics is deveoping an autonomous collaborative platform for drones that fly alongside crewed fighter jets. Photo by Handout /Dominion DynamicsDominion Dynamics Inc. has shattered records for the largest Series A fundraise in Canadian defence history after getting $139 million from major institutional investors.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe Ottawa-based startup on Tuesday said OMERS Administration Corp., Business Development Bank of Canada (BDC) and Deloitte Ventures Canada were among those buying in, and the financing was led by Toronto’s Georgian Capital Partners Corp.The participation from Canadian investors shows they now understand the “criticality of defence” and the crucial role that technology plays, Eliot Pence, founder and chief executive of Dominion Dynamics, said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.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 again“It’s a recognition that capital is ready and willing to participate,” he said.But Canadian defence tech startups and small and mid-sized businesses (SMBs) are still operating in what Pence calls a “liminal state” as they await the procurement reform that the federal government has promised via the newly established Defence Investment Agency (DIA).“We have yet to emerge on the other side of that,” he said. “We need to move at the pace of the threat and we’re not there yet. Other countries have definitely moved faster.”Dominion’s highest priority is securing a contract with the Canadian Armed Forces (CAF), he said, but it has faced challenges in getting access to and testing its tech with the armed forces.“Every good defence technology is co-developed by industry. What we’re looking for next is increasing the feedback and iteration cycles directly with the Canadian military,” he said. “And for a venture-backed company, you think about your life in terms of weeks, (not) months or years.”Homegrown SMBs and startups trying to break into defence are confronting high barriers to entry, from complex procurement and regulatory requirements to security clearances and fundraising, according to a BDC report in June, putting them in a tougher spot than larger and more established defence firms known as primes.Dominion will use its fresh funds to continue developing its flagship products designed for the Canadian Arctic: AuraNet, a software communications and monitoring platform, and Scout, an autonomous collaborative platform for drones that fly alongside crewed fighter jets.The Canadian Rangers, a unit of the Canadian Army Reserve that supports the CAF, recently tested Dominion’s software platform in the Arctic and the company received feedback during the trial and made fixes on the go.“The core capability that we bring to the table is velocity,” Pence said. “We are able to build, deploy, test and harden a product in the course of hours and days.”The new fundraise will also support Dominion’s expansion. It is hiring additional technical talent and will likely increase its headcount to 100 or 200 by year-end depending on how fast it can secure government contracts, Pence said.“We’ve had tremendous success in recruiting Canadians” and top technical talent from the likes of Google LLC, Space Exploration Technologies Corp. and Anduril Industries Inc.Dominion is on track to launch an office in the United States later this year and recently made its first hire in Australia.“If we can’t fund a customer in Canada, we’ll have to look elsewhere, which has unfortunately been the challenge in Canada for decades now.”Dominion has raised $169 million since its June 2025 launch. Other investors include British Columbia Investment Management Corp., Waterloo, Ont.-based Garage Capital Inc. and Silicon Valley’s Deer Management Co. LLC. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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