The Business Development Bank of Canada (BDC) is putting major new capital behind Canadian companies developing next-generation defence and dual-use technologies.

BDC announced that it is deploying $1 billion through defence-focused funds and its StrongNorth initiative, targeting companies working in areas including artificial intelligence, cybersecurity, quantum technology, space and energy.

The investment platform is designed to help Canadian technology companies move from early-stage development toward larger-scale commercialization. The initiative also reflects growing demand for domestic capabilities in strategically important technologies.

For Canadian businesses, access to specialized investment can be particularly important for companies developing technologies that require significant research, testing and infrastructure before reaching large markets.

The focus on dual-use technology also creates opportunities for companies whose products can serve both civilian and defence applications.

BDC's investment push comes as Canada places greater emphasis on strengthening its domestic industrial and technology capabilities. The targeted sectors — including AI, cyber and quantum technologies — are among the areas attracting increased attention from investors and governments.

The $1 billion commitment could provide Canadian technology businesses with additional capital to scale products, develop intellectual property and pursue international opportunities.

The initiative also positions BDC as an important source of growth capital for Canada's emerging defence-technology ecosystem.