CVCA and COVE Launch Canada's First Defence Capital Markets Program

Canada's defence budget is expected to exceed $150 billion by 2035 under its NATO spending commitment — and the country's private capital industry now wants a structured piece of it. The Canadian Venture Capital & Private Equity Association (CVCA) has partnered with COVE to convene Canada's first dedicated Defence & Security Capital Markets Program, a national initiative aimed at scaling Canadian private investment in defence and security companies.

COVE, which describes itself as a global technology partner advancing solutions "from seabed to space," will co-run the program with CVCA. The initiative will bring together investors across the entire capital stack: angel investors, venture funds, private equity investors and pensions.

What makes this program different?

The organizers position the program against traditional defence conferences and investor events. Its design centers on the intersection of three things: capital, capability and procurement.

Participants will hear directly from:

• global defence investors
• founders
• military leaders
• procurement experts
• industry leaders

The curriculum-style agenda targets the mechanics of defence markets. Organizers say participants will learn where demand is emerging, how customers evaluate and adopt new technologies, how companies navigate procurement and scale, and what experienced investors look for when assessing opportunities in the sector.

Melanie Nadeau, CEO of COVE, framed the gap the program addresses. "In defence, technology alone doesn't determine success. Investors need to understand whether a company is solving a real capability need, has access to end users and can navigate the path from validation to adoption," she said. "Investors keep telling us they can see the opportunity, but not the path in. This is the path in."

Why now?

The launch lands as Canada makes what the partners call historic investments in national security and sovereignty. The projected $150 billion-plus defence budget by 2035 creates demand for homegrown technology in several sectors:

• autonomy
• artificial intelligence
• robotics
• cyber resilience
• quantum
• advanced sensing
• space

The program's core thesis is that Canadian companies should supply the defence and security capability that Canada and its allies will buy. That requires domestic capital at every stage, not just at exit.

Benjamin Bergen, CEO of CVCA, argued the sector has finally gained the predictability it long lacked. "Recapitalizing Canada is critical to our prosperity and our sovereignty, and defence and security is one of the most urgent priorities," he said. "Procurement reform and allied demand have given this sector the predictability it lacked for decades. What Canadian defence companies need now is Canadian capital from the first cheque through to the buyout, so they can grow here and sell to Canada and its allies from here."

Who should pay attention?

The program targets two audiences at once. For investors, it offers direct access to founders, procurement officials and experienced defence investors already active in the market. For defence companies, it promises a deeper pool of domestic capital that previously looked elsewhere.

The initiative also signals a shift in how Canada's private capital industry views defence. Pension funds and private equity firms have historically treated the sector as niche or politically complicated. A national program backed by CVCA — the industry's main association — gives the category institutional legitimacy it has not had before.

Details on timing and format are still to come. Individuals and organizations interested in participating can join the program's mailing list through the CVCA and COVE registration page to receive updates first.

The bet behind the program is straightforward: if allied procurement reform has made defence demand predictable, Canadian capital has no structural excuse left to stay on the sidelines. Whether pensions and buyout firms answer that call will shape the scale of Canada's homegrown defence industry over the next decade.