With anxiety over Arctic sovereignty at an all-time high, a Canadian startup is pitching itself as Ottawa’s solution.
What happened: Canadian defence tech startup Dominion Dynamics has raised $21 million in a funding round led by Georgian Partners, Canada’s largest venture capital firm. Founder Eliot Pence (who formerly worked at the U.S. defence company Anduril) told The Peak the capital will go toward its flagship Arctic sensor network, AuraNet, as well as the development of its first autonomous drone, Dominion Scout.
Catch-up: Dominion’s sensors — which can monitor and detect threats in the Arctic — are already being trialled with the Canadian Armed Forces, but the company is still waiting for the feds to sign on as a paying customer.
Pence says they are targeting the start of next year to have a prototype of the drone ready to go, but stressed that the key is getting Ottawa’s cash onboard.
“Our company doesn't work, and frankly, our national sovereignty doesn't work unless the country buys in a time frame that is relevant for the threat,” Pence said. “We need to get on contract quickly.”
Why it matters: With the Trump administration alleging that Canada’s north is vulnerable to Russia and China, pressure is mounting on Ottawa to prove it can defend the Arctic — without abandoning its commitment to prioritize Canadian companies.
A handful of new companies have sprung up around the mission of asserting Canadian sovereignty in the Arctic, but this fundraising round makes Dominion among the most well-funded.
Zoom out: A recent TD report suggests that Ottawa’s $82 billion defence spending commitment could have a trickle-down effect on secondary industries and lift other parts of the economy, as well.—LA