BDC backs defence-sector, dual-use chip & rocket ventures

The Business Development Bank of Canada (BDC) has made its first two investments under a new defence-focused platform, backing semiconductor startup Irréversible and space venture Canada Rocket Company.

BDC said it participated in Irréversible's pre-seed funding round and co-led a CAD $6.2 million seed round for Canada Rocket Company. The organisation also announced a partnership with the University of Toronto-based Creative Destruction Lab (CDL) across its Defence program.

The investments target Canadian companies developing technologies with both civilian and military applications. BDC described the two businesses as dual-use innovators.

Chip investment

Irréversible is based in Sherbrooke, Quebec. The company develops semiconductor products and is working on AI chips aimed at next-generation computing.

BDC participated in the company's pre-seed round. Quantacet led the round. Frostbite Capital and Tofino Capital also took part, according to the announcement.

Irréversible has also secured a CAD $1 million IDEaS grant from Canada's Department of National Defence.

"Modern defence and security systems increasingly depend on the ability to deploy intelligence in environments where power, size, and reliability are critical constraints. Irréversible's focus on ultra-low-power intelligence directly addresses these challenges and strengthens Canada's domestic capabilities in areas that are increasingly important for national security," said Andrew Fursman, Co-Founder and Chair of the Board of Irréversible.

Rocket funding

Canada Rocket Company is based in Toronto. The company is building rockets that it says will deploy satellites into orbit.

BDC co-led a CAD $6.2 million seed round with Garage Capital. Four other investors joined the round, BDC said, without naming them.

CDL partnership

BDC also said it has joined Creative Destruction Lab's global Defence program as the first partner.

CDL runs programs for early-stage companies. Its Defence program focuses on dual-use technologies that it says address operational needs in defence, national security, and critical infrastructure protection.

The Defence program connects early-stage ventures with mentors, investors, and procurement experts. CDL runs it in partnership with six CDL sites across Canada and Europe. CDL said additional partners will follow.

The inaugural program year will conclude in May 2026. CDL said applications for the next cohort will open in April of this year.

CDL framed the partnership as part of its work with founders and researchers developing dual-use technologies.

"By working with BDC, the CDL Defence program is strengthening the environment in which entrepreneurs can build and scale technologies that matter. Our focus is on mobilizing a growing community of mentors, scientists, and alumni to support founders advancing dual-use technologies as they navigate the path from research to deployment," said Sonia Sennik, CEO of Creative Destruction Lab..

BDC launched its Defence Platform in December and described the Irréversible and Canada Rocket Company deals as the first investments made through that initiative.