North Vector Dynamics raises $29 million to expand counterdrone missile production

CALGARY · Calgary-based missile manufacturer North Vector Dynamics has raised $29 million in a Series A funding round to ramp up production of its counterdrone technology and expand its global operations. The funding was led by the European venture capital firm Tech Horizons, with participation from Canadian investors including ONE9, Garage Capital and Ripple Ventures. Chief executive Paul Ziadé said the money will be used to expand manufacturing and assembly of its low-cost interceptor missile in Canada and to open new offices in the United States and Europe. Ziadé said he experienced more investor headwinds last year than this year, indicating a shift in how the defence sector is viewed. "The time to build these technologies is now. There is a real sense of urgency right now," Ziadé said. "Europe can't wait. The Gulf can't wait. Arguably, Canada shouldn't wait. And so, we said 'let's do it and let's just pour more fuel on the fire.'" He had originally planned to raise the Series A financing this fall, but moved the process forward after investors approached him in the spring.

The company's flagship product is the CM-70, a precision-guided missile designed to intercept and destroy drones. It is less than a metre long, weighs about three kilograms and can travel at 900 kilometres per hour. The missile can be launched from the air, from another drone, or from the ground. Ziadé said the CM-70 is a "fraction of the cost" of competitor systems, citing the U.S.-made Advanced Precision Kill Weapon System as an example.

Interest in such low-cost counterdrone technology has grown as Canada and its allies have observed its effectiveness in recent conflicts, including in Ukraine and during the war on Iran launched by the U.S. and Israel in February. In those conflicts, expensive advanced systems proved vulnerable to cheaper, easily reproduced drones. North Vector has already secured Canadian defence contracts, including a four-year, $4.2-million contract with Defence Research and Development Canada in August 2025 to work on propulsion and hypersonic technologies. Matej Luhovy, a partner at lead investor Tech Horizons, said the funding round reinforces his "belief that technologies like these will play a decisive role in strengthening the defence capabilities of democratic nations." Ziadé said he is currently fielding further interest from Canada and its allies for more contracts. The Czech group CSG, which recently acquired a 9.5 percent stake in Canadian company MDA Space Ltd, also participated in the funding round.

To meet anticipated demand, Ziadé said the company's goal is to open a 25,000-square-foot facility and ramp up missile production to be in the thousands per year by 2027. North Vector also aims to control more of its supply chain, such as by producing its own fuzes, which are components used to activate the missile's warhead. "Canada does not have the most developed defence industrial base right now, especially for certain key capabilities and components that are incredibly important in the missile supply chain," Ziadé said. "If we can bring some of these things in-house, that would allow us to have a lot more flexibility and resiliency."

With files from The Globe and Mail