Cashing in on Canada’s defence spending spree might require a helping hand.
What happened: Fredericton-based defence startup incubator Vimy Forge has a new partner in Toronto's MaRS Discovery District. The longstanding Canadian innovation hub will help Vimy Forge with its goal of showing startups how to get a foothold in the defence world.
Vimy Forge has 10 startups in its first cohort that are receiving mentoring and training, and it plans to open up its second cohort in January.
Zoom out: It’s well known that Canada is boosting its defence spending and wants to put much of that cash into domestic companies. However, there’s a dearth of big firms ready and able to use all that funding — a void that startups and dual-use companies are trying to fill.
A report from the Council of Canadian Innovators and Icebreaker last year found 428 domestic companies with the potential for both defence and commercial applications that Canada could invest in to meet its defence spending target.
Why it matters: A report from the Business Development Bank of Canada and Icebreaker found that companies in fields like IT and construction trying to get into defence are facing sizable barriers to entry — that’s where programs like Vimy Forge can come in and potentially work some magic.—QH
