Canadian missile manufacturer North Vector Dynamics has secured $29 million in Series A funding to accelerate production of its low-cost counterdrone missile technology and expand its international presence. The Calgary-based company plans to increase manufacturing capacity in Canada and establish new offices in the United States and Europe to collaborate more closely with regional partners and localize production.
The funding round was led by European venture capital firm Tech Horizons, with participation from Canadian investors including ONE9, Garage Capital, Ripple Ventures, Feld Ventures, and Conconi Growth Partners. American and European backers formed the majority of the investors, while Czech group CSG, known for its recent acquisition of a stake in Canadian firm MDA Space Ltd., also contributed.
North Vector’s CEO Paul Ziadé described a shift in investor sentiment toward defense-focused companies compared to last year, noting increased urgency as global tensions rise. Originally planning to raise the round later in the year, Ziadé said early interest from investors in the spring prompted the company to move forward sooner. “The time to build these technologies is now,” he stated, emphasizing the demand from Canada, Europe, and the Gulf region.
The company’s signature product, the CM-70, is a precision-guided missile designed to intercept and neutralize drones. It weighs approximately three kilograms, measures under one meter in length, and travels at speeds up to 900 kilometers per hour. It can be launched from ground platforms, airborne systems, or drones themselves, offering flexible deployment options. The CM-70 is positioned as a cost-effective alternative to more expensive systems such as the Advanced Precision Kill Weapon System (APKWS) produced by U.S. defense contractor BAE Systems. In August, BAE received a U.S. Navy contract potentially worth $1.74 billion for up to 55,000 APKWS units.
Demonstrations of the effectiveness of low-cost counterdrone measures in recent conflicts have heightened interest in these technologies. In February, during U.S. and Israeli military operations involving Iran, the loss of advanced and costly equipment to inexpensive drones underscored the need for affordable and efficient drone interception solutions.
In addition to private investment, North Vector has secured government contracts and grants. In August 2025, the company was awarded a $4.2-million, four-year contract from Canada’s Defence Research and Development Canada to develop propulsion and hypersonic technologies. It also previously received $2.5 million through the Innovation for Defence Excellence and Security program from the Canadian Department of National Defence. Ziadé indicated that the company is actively engaging with Canadian and allied governments for additional contracts.
Looking ahead, North Vector aims to expand manufacturing into a 25,000-square-foot facility and increase production to thousands of missiles annually by 2027. The company is also pursuing greater control over its supply chain, including developing in-house fuze components, which are critical for safely activating missile warheads. Ziadé noted that Canada’s current defense industrial base lacks maturity in several key areas and that internalizing production would enhance flexibility and resilience.
Tech Horizons partner Matej Luhovy highlighted the strategic importance of such technologies, stating the firm’s conviction that systems like North Vector’s will be crucial for bolstering the defense capabilities of democratic nations.