Game of Drones
Military modernization is creating an opening for Canadian founders
Editor’s note: You are cordially invited to Arctic Edge: Canadian Defence Tech & Investment, hosted with our partners CSMC, RBCx, and Torys LLP, on May 26 during Toronto Tech Week. Space is limited.
🎯 Three-Shot Burst
Canada’s defence-tech scene is having a “why not us?” moment. As Ottawa prepares to pour billions into military modernization, a wave of Canadian drone companies is racing to prove the country can build its own next-gen systems across air, land, and sea.
“Everybody knows drones are the new warfare. Rifles used to be the first line of resistance. They’re now the last line.” — Glen Lynch, Volatus Aerospace Corp.
What’s Next: The bet is simple: drones are cheaper, faster to build, and far more expendable than legacy military hardware — which makes them increasingly central to modern warfare. Companies like Volatus, Sentinel, Kraken, Open Ocean, and INKAS see a rare opening to turn Canada’s engineering talent into sovereign capability.
“Drones are the splashy cousin… and the ground robot is the workhorse.” — Philip Reece, InDro Robotics
Bottom Line: RBC says Canadian defence spending could generate $100 billion for Canadian companies and transform Canada from a defence equipment importer into a contributor to allied military capabilities.
It all hinges on whether government procurement can finally move at startup speed. If Ottawa follows through, this could be the start of a real domestic defence-industrial base. If not, Canadian innovators may keep doing what they’ve always done — selling abroad first.
Related:
How Iran’s Cheap, Low-Tech Drones Have Cost the U.S.
Drone wars: The strategic convergence between Ukraine and Iran
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‘Robots don’t bleed’: Ukraine sends machines into the battlefield in place of human soldiers
DND seeking to advance methods to assess, calibrate, and maintain trust in real-time when humans work with autonomous systems
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Dominion Dynamics is expanding our team and we’re looking for ambitious Canadians who want to build sovereign technology for the future of national defence.
🤝 Deal Corner
Canadian Strategic Missions Corporation takes one small step to support life on the Moon
The Canadian Strategic Missions Corporation (CSMC) has won grant funding for two projects that could one day help humans live and operate on the Moon.
The Kitchener-Waterloo-based space and defence tech company has been awarded $1.2 million in federal funding to build manufacturing capacity for its nuclear microreactor, which is intended to power facilities both in the Arctic and on the Moon. The award follows CSMC winning the $400,000 top prize of the Canadian Space Agency’s Aqualunar Challenge last week for its lunar water purification technology.
Related:
Converting Canada’s quantum leadership into operational advantage
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U.S. defence company looking to raise up to $100-million to build Ontario arms factory
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Norwegian Startup Stendr Secures $5.4M to Combat Drone Threats
Kepler to lead testing of European Space Agency’s high-speed data network
Canada formalizes subscriptions to four new European Space Agency programs
ESA’s €18.6 Million Bet on Kepler Communications Reveals How Europe Plans to Build the Backbone of Space-Based Internet
Tungsten Collaborative receives National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) funding for drone development
Lockheed Martin bumps up VC investment fund to $1bn
Lockheed Martin’s Skunk Works launches UK Technology Roadmaps initiative alongside MTC partnership expansion
Ulysses Raises $46M Seed + Series A
Finland’s Kelluu Raises €15M NIF-led Series A
Aevex CEO Drops Bombshell on $320M IPO Surge: Why Defence Drones Are the Next Trillion-Dollar Bet
The European Defence Fund (EDF) 2025 results are in
EU pumps over $1 billion into defence R&D, centered around Ukraine war lessons
Wars Impose Lasting Economic Costs, While More Defence Spending Means Hard Choices
US NatSec Innovation Report Card
Space Race: The Canadarm launched 25 years ago this week
NATO Defence Giant Licenced To Serve Satellites for China’s Military
Telesat’s Rebuild Gets Boost From Canada’s Defence War Chest… Amazon to Buy Satellite Company Globalstar for $11.6 Billion
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Barrack Hill: Navigating Canada’s defence and procurement landscape with precision.
⚔️ Combat Readiness
Dominion Dynamics awaits military procurement reform after successful Arctic deployment of sensor tech
After meeting with the Prime Minister and embedding in the Arctic with the Canadian Rangers, defence tech company Dominion Dynamics is reconsidering its next steps as it waits for federal procurement processes to catch up.
Meet the neo-primes: Anduril, Palantir and SpaceX are changing how America wages war
Federal report: Evaluation of Capability Acquisition Modernization
Audit warns military procurement faces ‘persistent’ hurdles
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Iran roundup: How did the US run out of missiles in Iran?
BAE Systems trials low-cost counter drone solution for Eurofighter Typhoon
Canadian bacon: A new Ontario defence association… New Canadian trade association seeks to represent domestic defence industry… Canadian military beats recruitment target after 1,400 permanent residents sign up… BBE and Det’on Cho Logistics Launch Arctic Defence Logistics Platform to Strengthen Canada’s Northern Readiness… Built in Canada, Armed for the World: Roshel’s Bet on Sovereign Defence… Civil defence and Canada’s critical infrastructure
One app to check all UAS geographic zones across Europe
Sweden is allocating SEK 30 billion of its expanded defence borrowing to transport infrastructure
Boeing commits $36 Million CAD to Aerospace Manufacturing R&D in Winnipeg
Anthropic’s AI model sparks rush from industry, government to batten down defence hatches
Thought leadership: The Pentagon Has The Fast Lanes Now. Defense Catalyst Is Training the Drivers… How Emerging Technologies Are Redefining Modern Defence… Canadian Dynamism: From Survival to Triumph… NAV CANADA Study Projects Drones Will Reshape Canada’s Low-Level Airspace, Economy and Daily Life (Status check on drone licenses across Canada)… How Hyperspectral Data Is Changing Maritime Domain Awareness… Crafting a Canada-Made Critical Minerals Strategy
Drone wars: Are water drones in for an investment bonanza as defence budgets spike?… Building “Swarming” Software for Drones… Rheinmetall wins €300mn drone order from German armed forces… Estonia to halt $587M Infantry Fighting Vehicle buy in favor of drones, air defence… The West is preparing for cheap drone attacks, but many businesses and civilians can only watch, not stop them… Germany Orders “Thousands” of Auterion-Airlogix UAVs… Gambit Awarded OTA by U.S. Army GVSC to Advance Integrated C-UAS Simulation and Coordinated Autonomy… The Gulf’s counter-drone problem is that operators have been forced to burn $4M to $7M PAC-3 interceptors on $30K Shaheds because nothing cheaper existed at volume:
Arctic shelf: We deployed AuraNet in the High Arctic. Here’s what we learned working with Rangers for eight weeks… Canada, Nordic countries can work together to defend the Arctic, Finnish President says… How the US military is preparing for the future of arctic warfare… We’re spending $35B on Arctic defence. Why are we doing that?… Canadian Coast Guard tests Arctic surveillance drone as air force delivery stalls… Ottawa wants LNG to be shipped from Port of Churchill by 2030… I Went to Greenland and Saw a Warning for Canada
From the Ukrainian front: Ukraine unveils universal ground control station for fiber-optic drones to eliminate the “zoo” of systems… Visiting a drone factory in Ukraine… The Ukrainians are claiming to have intercepted a Shahed with an interceptor drone from a surface platform… Ukraine’s Future Vision and Current Capabilities for Waging AI-Enabled Autonomous Warfare
🔫 Hot Shots
Grey war: Here’s how cyber heavyweights in the US and UK are dealing with Claude Mythos… Canada urgently needs a civilian defence strategy — before the next crisis forces one… The Finns have suggestions for Canada… Push to secure Canadian IP in defence procurement needs a ‘clear plan’ of execution… UK to help Belgium build electronic warfare centre… Why Did China Buy Up the World’s Ports?
Canadian Program for Cyber Security Certification (CPCSC) has released its level 1 self-assessment tool and scoping guide. CPCSC will eventually become the cyber security standards for Canada’s defence supply chain and will start to be required as part of certain defence contracts
Odds & ends: Comprehensive list of European defence funds… How to get your robot on an airplane… The Alaska Highway was constructed in just eight months after the attack on Pearl Harbour. Soldiers, not civilians, built it. Today it continues to serve as a transformative piece of linear infrastructure that supports significant elements of the economies of BC, Yukon, and Alaska… NorthStar Earth & Space Announces Plans to Become Publicly Traded via Merger with Viking Acquisition Corp… UVic to get more than $5M for aerospace, AI projects… 10 defence tech startups on a hiring spree… What Ukraine Has Taught Us: The Critical Role of Textiles and Equipment in Modern War… The Largest SME Opportunity in Canadian Defence History — And Why Most Founders Will Miss It
The Pentagon: America’s Fourth Coast Could Help Close the Shipbuilding Gap With China… A Private Equity Billionaire Mounts His Biggest Takeover Yet: the Pentagon… The three valleys: why American defence tech cannot scale at the speed of strategic competition… $7.2B to the Missile Defense Agency — 41% of the $17.5B Golden Dome for America Fund in the FY27 request
If you’ve got battlefield intel, classified tips, or just want to call in an airstrike on our typos, hit “reply” and sound off. Whether it’s a new tech sighting, a rumour from the mess hall, or feedback on our comms, we want your SITREP.