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 investing 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: “With MDA Space LaunchPad Ventures, we are looking to unlock, accelerate, and strengthen the country’s space and defence industrial base, reinforce sovereign capabilities, and ensure that the next generation of mission-critical and export-ready technology is built here at home,” MDA CEO Mike Greenley said in a news release.
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, 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. The firm has not attached a specific dollar figure to the program.
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.
Feature image courtesy MDA Space.