Brampton-based MDA Space wants to help other Canadian space and defence technology companies scale their solutions with a new venture funding program.
The news: The new strategic program is focused on identifying and making equity investments in domestic small and medium-sized businesses (SMBs) that are developing promising space and defence technologies.. Through MDA Space LaunchPad Ventures, the Canadarm maker and Canadian space industry veteran hopes to help startups build capabilities that meet the needs of the Canadian Armed Forces (CAF) and allied militaries. MDA has outlined 25 focus areas aligned to Canada’s sovereign priorities, ranging from satellite and autonomous systems to air navigation and orbital signal-jamming technology.
From the source: “The biggest barrier for most Canadian defence SMBs isn’t talent or technology, it’s access to customers, to networks, and revenue opportunities,” MDA senior director of corporate development Shawn Roy, who is leading this program, told BetaKit over email. “MDA Space has spent 55 years building those relationships. MDA Space LaunchPad Ventures is how we open them up to Canadian SMBs that we can work with to deliver the capabilities our customers and the market need.”
The context: MDA initially spun up LaunchPad in 2018 as an entry point for innovative Canadian SMBs and academic research groups looking to collaborate with the company. With LaunchPad Ventures, which marks an extension of that continuing program, MDA plans to put its own capital into portfolio companies and give them access to its engineering expertise, its recently launched defence subsidiary 49North, and a government contract pipeline. For MDA, which has already backed companies like Halifax-based Maritime Launch Services, Roy called LaunchPad Ventures “a natural evolution and expansion” of its business that gives it early access to emerging tech. Roy, who declined to disclose the program value, said MDA aims to collaborate with other investors as part of the initiative.
Final thought: LaunchPad Ventures arrives as the Government of Canada prepares to pour billions of dollars into reducing the country’s dependence on the US and build a “robust” Canadian defence industry after decades of underinvestment. SMBs are expected to play a key role in this push, but many are still struggling to break into the sector. Established players like MDA and Ottawa defence contractor Calian could bridge the gap.
Calian has already launched Calian Ventures, a $100-million CAD platform to help firms with existing defence solutions test, validate, and sell to the CAF using some of its own cash. Given where the Canadian defence winds are blowing, these programs are unlikely to be the last of their kind.
UPDATE (08/28/26): This story has been updated to include commentary and additional information shared by MDA Space senior director of corporate development Shawn Roy.
Feature image courtesy MDA Space.