Two Canadian startups — Reaction Dynamics and Tactiql — have secured nearly $1M CAD in funding after being selected for Phase 2 of NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA).
Each company will receive €300K ($482K CAD) and gain access to NATO’s test centres, investor networks, and procurement partners.
DIANA focuses on dual-use technologies with both military and civilian applications, narrowing its second-phase cohort to just 15 companies worldwide from an initial pool of 2,600 applicants.
Reaction Dynamics: Sustainable rocket propulsion
Based in Longueuil, Quebec, Reaction Dynamics develops rocket engines and launch vehicles with a focus on environmentally friendly hybrid propulsion systems. The company was recently featured in BetaKit’s Most Ambitious issue and has signed an agreement with Maritime Launch Services to send a rocket into orbit from Nova Scotia in 2028. It advanced under DIANA’s critical infrastructure category.
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Tactiql: Defence-grade data and intelligence
Founded in 2023 by Canadian Armed Forces veteran Michael Nelson, Ottawa-based Tactiql builds software that consolidates and analyzes data from intelligence, surveillance, and reconnaissance (ISR) sensors used in military operations. The startup has already secured nearly $4M in Canadian government research contracts and joins DIANA under the data and information security category.
Rising Canadian focus on defence tech
The recognition comes as Canadian investors ramp up their interest in defence technology. The Business Development Bank of Canada (BDC) recently signaled a more aggressive investment strategy in dual-use deep tech, aligning with Prime Minister Mark Carney’s pledge to raise defence spending to 5% of GDP by 2035.
Globally, the sector is also heating up: VC investment in defence tech surpassed $7B in 2025, more than quadruple the 2022 total, according to Pitchbook.
