National Security, Now Powered by Startups
Autonomy, AI, and capital are converging—Canada is (finally) leaning in
Editor’s note: Eminent defence reporter Murray Brewster with a special appeal for his fixer and translator in Afghanistan. Please consider helping out.
🎯 Three-Shot Burst
Bessemer Venture Partners has a new report detailing how defence tech has advanced more in the past twenty-four months than in the previous three decades, with startups leading the charge on key pillars of innovation.
Reality check: Transformational catalysts are converging in defence technology today, with five critical forces shaping the future:
Autonomy moves from concept to combat
AI permeates US DoW workflows— both mission-critical and enterprise back-end
New performance and innovation vectors for advanced manufacturing
Edge and network resilience
Energy and materials independence
Bottom Line: Bessemer believes that national security now runs on startup innovation. “Macro shifts, technological innovation, and structural reform are converging to create the most dynamic period in modern defence history, and the way we build, buy, and deploy defence solutions is being rewritten in real time. Unlike previous transformations, startups now play a defining role—and we believe many generational defence tech companies will emerge from this wave.”
Related:
Defence tech startups had their best funding year ever in 2025
2026 defence industry outlook – from printing parts on the battlefield to AI‘s strategic move from the frontline to the flightline
The European defence techs working with governments in 2026
Thanks to our pals at BCI — the first Canadian public pension in on a sovereign defence deal — for public comps showing defence durability: Lockheed Martin (+31%), Saab (+36%), Kratos (+33%), Redwire (+64%) surged as European NATO commitments accelerated. Electronics expanded from 6.4x to 8.7x in six months. Multi-year procurement reflect revenue visibility that defined early enterprise SaaS adoption:
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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
Canada officially endorses leadership role in new defence bank
Pippa Norman reports Canada is officially taking on a leadership role in the effort to establish a new multinational bank dedicated to financing defence projects.
“In the months ahead, Isabelle Hudon, CEO of BDC will be working closely with international partners to lead Canada’s contribution to advancing the DSRB.” — Finance Minister François-Philippe Champagne
Scotiabank, CIBC and National Bank plan to support the international defence bank.
Signs of Life: Six months ago, Canadian defence startups routinely complained about being denied basic chequing accounts at major banks. Now Canada is leading global talks to launch a new NATO defence bank.
Bottom Line: Access to credit is critical given the need to re-arm rapidly. Pace will allow private companies to compete against major primes, fulfill urgent capability requirements and help transform the ecosystem. Any VC can tell you how expensive and difficult it is with just equity.
Editor’s note: Bravo Zulu to Kevin Reed, the Canadian leading the charge globally to cajole countries in creating the defence bank.
Related:
BDC targets rockets, semiconductors as first investments under new defence strategy… Q&A: BDC Capital’s head on why Canadian defence tech investments are heating up
Canadian companies can win the trade wars by being essential to the U.S. government in defence
Dominion Dynamics launches AURION, a tool for defence builders in Canada. AURION uses real public data to reveal how procurement, suppliers, and contracts actually work
Congrats to our partners at Vimy Forge on launching its first cohort. Vimy Forge, anchored in Fredericton, is Canada’s national defence incubator
Register here to hear from Vimy’s managing director Duncan McSporran on Canada’s Radar Moment (Feb 10)
Trump Threatens to Ground Canadian Aircraft and Apply Tariffs to Imports… Trump’s latest tariff threat has targeted Canada’s aviation industry. Here’s how reaction unfolded… The US Army wants 11 business jets for ISR missions
Photon-IV awarded R&D funding through a $250,000 contract under the Innovation for Defence Excellence and Security (IDEaS) program
Silicon Valley Goes To War
ICYMI: Pentagon CTO Taps CTA Heads
Soldiers and Startups: Inside the Room Where Freedom’s Future is Built
Legacy Large Defence Primes Are Cracking Up In The New Order
European defence is so hot right now
Frankenburg has raised up to $50M at a $400M valuation
Grid Aero Raises $20 Million To Advance Autonomous Long-Range Aircraft
Anduril and Davidson Work with D-Wave on Quantum-Assisted Defence Planning
Brit pop: UK Looks to Private Money to Help Fill Defence Spending Gap… The UK has launched a £20m fund to fast-track government contracts for domestic military technology start-ups, targeting AI, robotics and precision weapons as part of a shift away from reliance on prime contractors… UK Ministry of Defence has awarded Palantir a £240.6m, three-year follow-on contract… Small defence companies get easier access to MoD contracts… New space labs will help small tech firms grow
Helsing and Stark Set to Win German Drone Order as Rheinmetall Lags… Germany is betting big on killer drones. In Ukraine, they couldn’t hit their targets
EIF eyeing ‘more ambitious’ defence investing programme as it doubles down on military tech
Record CSG IPO Sets Europe For Defence-Led Listings Rebound
Antares Nuclear Moves Closer to Reaching Criticality
Reveal Snaps Up Anomaly Six
Commission approves eight more SAFE defence investment plans worth €74bn
TKMS, Seaspan Shipyards sign teaming for Canadian Patrol Submarine Project… German, South Korean firms scramble to outbid each other on benefits of submarine deal… Ottawa, Seoul agree to work on bringing South Korean auto sector manufacturing to Canada… TKMS launches the Canadian Defence & Dual-Use Innovation Ecosystem (CDDE)
Industrial benefits policy needs a ‘relook,’ says ex-senior public servant
Space corner: Five Investor Rules Space Force Must Obey To Secure US Space Industry… Northwood Space secures a $100M Series B and a $50M Space Force contract… The Space Economy: Act Now or Lose Out, UK Engagement with Space Committee 2025
Ukraine is working with SpaceX and Elon Musk to prevent Russia from using Starlink connectivity to guide its drones… SpaceX files plans for million-satellite orbital data centre constellation
48 GW of proposed data centers in the US - roughly 33% of all planned capacity - now plan to skip the grid by building “behind-the-meter”
Germany signals joint fighter project with France may not deliver jets
Ukrainian troops were ‘stunned’ to learn their British trainers weren’t using anti-drone nets, UK officer says
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John Ruffolo: What is all the YC fuss really about?
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⚔️ Combat Readiness
Ukraine Unveils Mission Control
According to Tectonic, the Ukrainian Ministry of Defence announced that all of its drone operations will soon be unified under a single operating system called Mission Control, which will basically act as a giant, data-driven eye-in-the-sky for how drones in Ukraine are being used.
The drone management platform will plug into Ukraine’s bespoke DELTA combat ecosystem, and operators will be able to input all sorts of data about drone missions (from weather conditions to hit rate, speed, launch type, and failures) using an easy-to-use interface, in real time. Mission Control will then analyze these piles of data to help optimize drone use.
Also last week, Ukraine’s Minister of Defence announced that 820,000 enemy targets have been neutralized by the Army of Drones program. Ukraine plans to produce over 7 million drones in 2026.
Related:
Should the Canadian Coast Guard be armed? The jury is still out, but the navy says no
Canada’s race to build warships: Here’s what they’ll do, and the yards vying to cut their steel
CIBC economist Benjamin Tal here provides an analysis of the performance gap between Canada’s struggling manufacturing sector, and its U.S. counterpart
Defence tech startups want to change the way Canada equips its military
James Yurichuk on The Evolution of the Canadian Military Uniform
Canada should keep options open on acquiring nuclear weapons, former top soldier says
How Does Canada’s Military Fare Without the United States?
Canada Is Building a Surveillance Network in Space: A reborn Cold War telescope is part of a broader effort to stop relying on US intelligence
Canada is moving ahead with a $2.4B HIMARS purchase despite trade tensions, delayed delivery, and viable non-U.S. alternatives
U.S. defence procurement expert says routine cooperation with Canada ‘not going to change’
U.S.-Canada Defence Relationship Evolving
The Core Mechanism: Interoperability as US Market Power
Rusty Dagger Low-Cost Cruise Missile Hits Its Target
The ‘Growler’ Signal-Jamming Jet That Helped Capture Nicolás Maduro
Digital sovereignty: Canada doesn’t need to outspend superpowers to lead on digital sovereignty — it needs to out-think them… Europe Prepares for a Nightmare Scenario: The U.S. Blocking Access to Tech… France to ban officials from US video tools including Zoom, Teams
Artemis update: We’ve already been to the moon, so why are we going again?… Cold snap narrows launch window for Artemis II mission
Euro trip: To protect itself, Europe needs the systems that make warfare work… Germany plans satellite missile detection system to cut reliance on US
Arctic corner: C2 Considerations in the Arctic… Canada’s icebreaker pact looked great until Trump started threatening the Arctic… Coast Guard patrol vessel headed to Greenland for opening of new consulate… The Golden Dome is where Canada’s F-35 debate and Trump’s Greenland threat meet… ‘The ground is shifting’: Inuit leader issues stark warning about Arctic sovereignty
Opting out of F-35 purchase would be ‘three ways from Sunday stupid,’ says retired major general
Sources say Ottawa considering Swedish jets over F-35s for half of fleet
Trump and Ottawa’s take on TACO will determine Canada’s fighter-jet strategy
From Innovation Challenge to Combat Power: The Future of Armed Drone Proliferation
Canada and the National Technology and Industrial Base
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🔫 Hot Shots
Grey war: ‘We’re losing massively’: EU cyber chief warns Europe’s defences lag… US Conducts Rare Inspection of Chinese Research Base in Antarctica… How computer warfare is becoming part of the Pentagon’s arsenal… “We sped research that should have taken 20 years”: Inside Q.ai’s Apple exit… Pentagon’s new ‘non-kinetic effects cell’ bolsters Gen. Caine’s goal to better integrate cyber into U.S. military operations… A National Strategy to Ensure Greater Use of Trusted Commercial Electronics… Pentagon urged to wage decision-based AI warfare… Pentagon leaders expect Cybercom 2.0 to help thwart Chinese actors ‘living off the land’… Senior DOD officials back Cybercom 2.0, as Cyber Force debate continues to churn
Risky business: A former Chinese inmate on the risks of ‘middle powers’ turning to Beijing… Mark Carney just ushered in a transformative moment for Canada. It’s also a risky one
Contested logistics: Wargames Keep Warning Us About Congested Logistics—It’s Time to Take Action
Managed up: US to Seek Rare Earth Price Mechanism During Meetings With Allies, Official Says… Pentagon Strikes Deal With Canada’s 5N Plus… Is the United States Department of War investment in MP Materials a taxpayer benefit or market distortion?… Canada Nears $3 Billion Uranium Deal With India, May Be Inked In March… Trump to Launch $12 Billion Critical Mineral Stockpile to Blunt Reliance on China
C4ISR is a warfighting system, not IT: Derek Dobson with reflections from the C4ISR conference in Ottawa
Uh oh: Ottawa is subsidizing a tech firm that provides wiretapping tools to ICE… Canada is Funding its Own Economic Decline… This Gen Z pair built a $34M startup in Canada, only to move to US… Xi Jinping’s purge should worry the world… Japan waiting 5 years for $7.2bn in US military equipment purchases… Class-action lawsuit targets MDA Space over scrapped, $1.8-billion EchoStar deal… Recalibrating Canadian universities to meet the defence mark
Job alert: Invest Ottawa is seeking a Business Development Manager with experience in the defence industry… Are you interested in building a meaningful and impactful career in safety, security, or intelligence? Attend the Federal Safety, Security and Intelligence Career Fair on Feb 5
Vroom zoom: Anduril announces the AI Grand Prix, a fully autonomous drone racing competition
Physical AI: The era of Physical AI is here. Montreal’s Vention announce their $110M USD funding round. Toronto’s Waabi raises up to $1 billion and partners with Uber to deploy 25,000 robotaxis as the race to dominate self-driving heats up
Reading list: The Bureaucracy of Intervention: Deploying the Canadian Armed Forces by Mike G. Fejes
Enlist: In an uncertain climate, Canada needs a civil defence corps
PSA: Hot Docs Talk + Film Screening: Ibogaine, PTSD & Healing - In Waves and War
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.
Fantastic post