A New Era for Canadian Defence Technology
A defence technology company that has played a key role in safeguarding Canada’s northern regions announced on Tuesday that it has secured a significant financial boost: $139 million. This funding marks the largest Series A round ever recorded for a Canadian defence company, signaling a major milestone for the Ottawa-based firm.
Dominion Dynamics, founded in June 2025, is known for its innovative AuraNet system—a network of sensors and a map-based platform capable of collecting, tracing, and transmitting data from remote areas with limited or no cell service. The Canadian Rangers, part of the military stationed in isolated and coastal regions, recently used this technology in the High Arctic, one of the most challenging environments in the country.
The newly raised capital will support the expansion of AuraNet and the development of Scout, an uncrewed, AI-powered drone designed to operate independently or alongside fighter jets. This technology is intended for deployment in environments too dangerous or remote to risk sending pilots into.
“Canada desperately needs more autonomy in its armed forces, and we are going to contribute one piece of that with Dominion Scout,” said Eliot Pence, founder and CEO of Dominion Dynamics. “We have a 30,000 sq. ft. factory in Kanata, Ont. We're probably going to go find a 300,000 sq. ft. factory in either Montreal, Toronto or Ottawa, or even the West Coast, where we can hire not just hundreds but thousands of people.”
Why the Technology Matters
According to Pence, the technology being developed by Dominion Dynamics is important for three main reasons:
- Human safety: “Whenever you can take a human out of the loop, where you're risking their life, is a good thing.”
- Geographic challenges: Canada is a vast country with over 200,000 kilometers of coastline. Protecting the nation requires constant monitoring, which is made easier with technological assistance.
- Military underinvestment: “Canada has underinvested dramatically in its military for the better part of half a century,” he said, referring to outdated equipment and legacy vessels and aircraft.
Pence argues that the country should aim higher, especially after meeting NATO's two per cent of GDP defence-spending benchmark and committing to reaching five per cent by 2035.
Investor Confidence and Strategic Growth
Investors are increasingly recognizing the importance of such advancements. Although some still have ethical concerns about investing in defence companies, Pence found it relatively easy to attract funding amid global events like Russia's invasion of Ukraine, the Iran conflict, and the U.S. encouraging nations to rethink sovereignty and security.
“It feels like an inflection point, not just in the country, obviously for the business,” he said. “It's critically important that we have investors that are willing to take a swing for the fences.”
The Series A round was led by Georgian, a Toronto-based venture capital firm. Additional investors include OMERS, the Business Development Bank of Canada, Royal Bank of Canada, and existing backers Bessemer Venture Partners and the British Columbia Investment Management Corp.
Industry Context and Financial Milestones
According to data from the Canadian Venture Capital and Private Equity Association, only four other Canadian companies have managed to raise more in their Series A rounds. These include:
- 1Password, a Toronto-based login management firm that raised US$200 million in 2019.
- Borealis Biosciences, a Vancouver-based company focused on kidney disease treatment, which raised US$150 million in 2024.
- LayerZero Labs, a Vancouver-based blockchain company that secured US$135 million in 2022.
- Element AI, a Montreal-headquartered artificial intelligence firm that raised US$102 million in 2017 and was later acquired by ServiceNow.
With its C$139 million Series A, Dominion Dynamics has now raised a total of C$169 million since its launch in June 2025. This marks a significant step forward for the company as it continues to expand its operations and develop cutting-edge technologies to support national security.
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