A Calgary-based defence tech startup has secured a four-year, $4.2-million contract from Canada’s defence department, coinciding with increased federal military spending.
North Vector Dynamics, founded by University of Calgary engineering professors, specializes in high-speed aircraft propulsion, drone attack training systems, and AI-guided missile systems.
Defence Research and Development Canada awarded this contract for “expert engineering support” in “high-speed and hypersonic aeropropulsion technologies,” focusing on aircraft exceeding Mach 5 speed.
The research at the military station in Saint-Gabriel-de-Valcartier, Qué., covers hypersonic cruise missiles, glide vehicles, and defense systems, alongside small satellite launcher concepts for space access.
In an interview, co-founders Craig Johansen and Paul Ziadé stated this technology is intended to enhance expertise in high-speed weaponry and Canadian defence, rather than vehicle development.
Previously Think Solutions Engineering, North Vector emerged in May after focusing on counter-uncrewed aerial systems (CUAS). The startup has received $2.5 million in government grants through the IDEaS program and participated in the Aerospace Accelerator Program at Innovate Calgary.
Ziadé mentioned that CUAS products are nearing commercialization, attracting interest from major defence companies in the US, UAE, and the Philippines. The startup is backed by Ottawa-based One9, acquired by Kensington Capital Partners.
With 10 employees, North Vector is in the process of raising its first VC funding round. Ziadé noted increasing Canadian investment in military and defence tech, traditionally receiving low private sector interest.
Globally, defence tech investment is rising, with US VC investments in 2025 reaching over $7 billion, quadrupling 2022 levels, according to Pitchbook.
The Business Development Bank of Canada plans to boost support for the defence sector, aligned with Prime Minister Mark Carney’s pledge to increase defence spending to 5 percent of GDP by 2035, focusing on modern technology and equipment.
In a Globe & Mail opinion piece, Ziadé and North Vector’s Omar Saleh supported Carney’s spending targets, advocating a change in perception towards defence work.
Carney also announced a new Defence Procurement Agency and BOREALIS, a defence research initiative similar to DARPA. Tech industry groups praised these moves, urging the government to prioritize Canadian-made technologies.
Ziadé highlighted procurement’s long timelines as a challenge in delivering up-to-date technology.
Amid global AI weapon deployment, North Vector’s systems keep humans involved in decision-making, primarily for guidance, navigation, and computer vision in CUAS systems.