The Business Development Bank of Canada has joined the investor network tied to NATO’s Defence Innovation Accelerator for the North Atlantic, becoming the first Canadian investor to gain entry into the group.
The Crown corporation said membership in the capital network, which supports the alliance’s innovation accelerator known as DIANA, will help it spot investment and market opportunities across NATO member countries for the small and medium-sized Canadian businesses it works with. DIANA itself was established in 2021 at a NATO summit in Brussels to encourage cooperation and innovation among allied countries, their technologies and armed forces. The affiliated capital network that BDC has now joined was launched earlier this year to connect entrepreneurs in the accelerator with potential investors.
Halifax Ties Behind the Connection
BDC’s link to DIANA runs through Halifax, home to both the innovation accelerator’s North American regional office and COVE, a NATO DIANA-certified accelerator. It was through COVE, along with support from the federal government, that BDC was connected to DIANA and ultimately invited to join the new investor network, based on its role as Canada’s development bank and its familiarity with the country’s innovation ecosystem.
Peter Dawe, senior vice-president of defence strategy at BDC, said the timing made sense for Canada to deepen its involvement. “The conditions are right,” Dawe said. “We have the talent. We have the know-how amongst our entrepreneurs in Canada, and at BDC, we’re very keen to play our role in terms of supporting them as they strive to meet the moment.”
Dawe added that Canada’s relatively small domestic market makes it important for the country’s businesses to pursue diverse markets abroad, calling the DIANA connection “another way to get after them.”
Canada’s Growing Footprint in NATO’s Innovation Network
Canada’s presence within DIANA extends beyond Halifax, with close to 20 affiliated facilities across the country, including some of the accelerator’s 16 designated sites and a share of the more than 200 test centres located across NATO member states. According to the federal government, Canada led the alliance this year in the number of company applications to DIANA’s six-month accelerator program, which is designed to quickly mature technologies addressing challenges faced by allied forces. Of the 150 companies chosen for the 2026 DIANA cohort, 22 are Canadian.
Membership in the capital network is restricted to investors based in NATO countries, mirroring the requirement for participating entrepreneurs. Investors accepted into the network gain access to the pipeline of companies going through the accelerator, along with briefings from various defence ministries and other events held across the alliance meant to inform investment decisions.
Dawe said he expects to have regular exchanges with other investors in the network to compare notes on developments in their respective countries, and sees the arrangement as a chance to highlight Canadian technologies that may need outside investment partners.
Part of a Broader Defence Push
Joining DIANA’s capital network is the latest in a string of moves BDC has made over roughly the past year to back the small and medium-sized firms that make up most of Canada’s defence sector — companies the federal government views as central to building sovereign supply chains for critical capabilities.
Earlier this year, BDC expanded its defence platform to $6-billion from $4-billion to provide financing, venture capital and advisory support to companies aligned with Ottawa’s Defence Industrial Strategy. In a September announcement, the bank said $500-million of that expanded platform would go toward venture capital, growth equity and private equity funds investing in defence and dual-use technologies — those with both military and commercial uses. It also said it would add $200-million to StrongNorth, its existing $300-million venture capital fund focused on early-stage companies with defence applications.
BDC's Defence Sector Financial Commitments
Altogether, BDC said it now has approximately $900-million in exposure to defence and dual-use companies.
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