Ottawa-based defence technology startup Dominion Dynamics has raised $21M CAD in seed funding as it positions itself to become a new generation Canadian prime defence contractor. The round comes amid rising defence spending and renewed focus on domestic defence capabilities in Canada.
The funding was led by Georgian Partners, with participation from British Columbia Investment Management Corporation and Bessemer Venture Partners. Founded in June, the company has now raised a total of $26M CAD. The valuation was not disclosed.
Targeting a new model for Canadian defence contracting
Dominion Dynamics was founded by Eliot Pence, formerly responsible for international go-to-market strategy at US defence company Anduril Industries. Pence describes Dominion’s ambition as building a distinctly Canadian alternative to large global defence primes, combining software, hardware, and systems integration under one organisation.
The company is focused on aligning closely with government and allied end-user needs, recognising that success in defence markets depends not only on technology but also on long-term procurement, ecosystem management, and political alignment.
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Riding a shift in Canadian defence policy
The fundraise coincides with a significant increase in Canadian defence investment. In its most recent federal budget, the government committed $82B CAD toward defence-related initiatives, including industrial strategy programmes and new financing mechanisms intended to support domestic suppliers.
While access to capital for defence startups has historically been constrained by investor restrictions, recent signals from public institutions suggest growing openness to supporting defence technologies, including areas previously considered off-limits.
Initial focus on Arctic monitoring infrastructure
Dominion’s first product, Auranet, is a software platform designed to connect distributed hardware sensors into a unified data layer for monitoring remote regions, particularly in the Arctic. The system aggregates sensor data into a shared fabric that supports situational awareness, historical analysis, and predictive modelling.
Auranet has already been deployed in two field implementations and is scheduled for use during Canada’s Northern military exercise Operation NANOOK. The platform is intended to support long-term monitoring and decision-making in regions where data collection and analysis infrastructure is currently limited.
Prioritising R&D over near-term revenue
Dominion Dynamics currently employs close to 20 people and plans to focus primarily on research and development over the coming year rather than immediate revenue generation. The company’s longer-term vision involves expanding into multiple defence domains, combining software and hardware capabilities as it works toward prime contractor status within Canada’s defence ecosystem.
