Canada's 'Palantir' creates new funding record; CEO says ambition is to change the country

Canadian defence technology startup Dominion Dynamics has raised C$139 million (about $98 million). The company claims that it is the largest Series A funding round for a Canadian defence startup. Following the investment, Dominion CEO Eliot Pence said the company's long-term goal extends beyond business growth.In an interview with Bloomberg, Pence said, “The ambition is to change the country. So it’s bigger than a company. That said, I think that the best and most material way of changing the country is by building a large Canadian defense prime.”The Series A financing was led by Georgian Partners, with participation from Bessemer Venture Partners, the Royal Bank of Canada, the Ontario Municipal Employees Retirement System (OMERS), and other investors, including British Columbia's public sector pension manager. The latest investment brings Dominion Dynamics' total funding to C$169 million since its launch last year.How will this funding support defence technology development in CanadaDominion Dynamics said it plans to use the new capital to accelerate development of AuraNet, its surveillance and data-sharing software, and Scout, an autonomous platform designed to extend the operational reach of crewed fighter aircraft.According to the company, AuraNet has already been deployed with the Canadian Armed Forces during a two-month exercise, in which Canadian Rangers used its Arctic-hardened sensors for mission tracking, planning, and real-time communications.The company has also expanded its operations by opening a 25,000-square-foot factory in Ottawa and a development office in Toronto. It has recruited engineers from companies including Anduril Industries, Tesla and Alphabet, and plans to grow its workforce to more than 100 employees by the end of the year.The funding comes as the Canadian government advances a defence industrial strategy to support domestic companies ahead of increased military spending by Canada and its NATO allies.Pence said the company is working to revive Canada's defence technology capabilities, citing projects such as the Avro Arrow from the 1950s. “We still have a lot of know-how, the technical talent. What we don’t have is a procurement system able to invest at the pace of the threat,” he said.The report noted that the Canadian government has introduced a new Defence Investment Agency to accelerate military procurement. However, Pence said the agency currently focuses on contracts exceeding C$100 million, leaving many domestic defence projects outside its scope.He also said that while the latest funding round reflects growing investor interest in the defence sector, some structural restrictions continue to limit investments in companies developing technologies linked to offensive military capabilities.Get the latest technology news and updates. Download the TOI App.