“This policy is attempting to position Canada as a serious Arctic nation, but diplomacy and a few consulates won’t do the work of technological investment, persistent intelligence, surveillance and reconnaissance,."

Glenn Cowan notes that while Canada's newly released Arctic Foreign Policy details new regional diplomatic and multilateral security initiatives, Canada must start by meaningfully investing in the dual-use technologies vital to Arctic development, and security.

VC = Special Forces. Private Equity = Conventional Forces. We need both.

"The [US] 2024 National Defense Industrial Strategy states: 'We need to build a modernized industrial ecosystem that includes … finance streams, especially private equity and venture capital.'”

"Beyond venture capital, the defense industrial base also draws upon a vibrant private equity and private credit market. The private market — which invests in more mature firms than venture capital — often supports companies by providing a potential “exit” to founders and venture capitalists who wish to cash out of successful businesses as well as facilitating mergers and acquisitions."

Investing is a special operation.

Welcome to the opening salvos of Mercantilism 2.0.

The West might control certain technologies, for the moment, but the CCP controls the critical rare earth elements that make them all work.

Buckle up.

Canada can become a serious country again, if it so chooses.

"[T]he traditional assumptions about Canada’s security, prosperity and social cohesion no longer apply ... Amid all these existential threats, it’s time for some serious thinking about how we secure our future in a rapidly changing world that does not owe Canadians anything."

Modern warfare demands rapid adaptation; traditional defence acquisition models, characterized by slow, rigid, product-focused processes, are ill-suited to meet this challenge. Success on the battlefield increasingly hinges on flexible, outcome-driven approaches, real-time feedback loops, and decentralized manufacturing capabilities that enable faster innovation and response.

Current conflicts make it clear that those who iterate faster and leverage commercial off-the-shelf technologies effectively generate a decisive advantage.

Everybody wants an omelette, but nobody wants to crack any eggs.

"Raising the corporate tax rate by three percentage points — from 15 per cent to 18 per cent — could generate more than $9 billion in annual revenue for the federal government. Increasing the GST from five per cent to six per cent might add another $10 billion."

Who's going to raise their hand for this? Are the Provinces willing to accept lower transfer payments for education, healthcare, and social services?

"One problem identified in the report was the CAF's infrastructure in the region, which the report said was 'well below' the average condition of its assets across Canada. In the Arctic, the average age of military infrastructure is 45 years, with 81% of its assets older than 30 years and 38% older than 50 years, the report said."

An ounce of prevention is worth a pound of cure. We're paying in pounds.

"Being successful in America means being successful in America ... Europe [and Canada] moves slower. Ministries of Defense (MoDs) are more skeptical of new technology and new players entering the market."

Many of the points here apply equally to Canada.

And while it's not certain that Canada could support a new full scale prime like @Anduril, it IS certain that we would benefit from a mission-oriented tech ecosystem, focused on emerging tech, playing to Canada's recognized strengths, working in lockstep with end-users to solve operational challenges.

"After not being allowed to raise money from Chinese investors, some Canadian critical minerals companies have started fleeing the country in search of deeper pools of capital overseas."

It's good that the government is using sticks for China, but it's long overdue that we find corresponding carrots to ensure that Canada can take advantage of its critical mineral riches. This must be achieved through streamlined regulation, creative financing and tax incentives, and collaboration with allies.

We can only secure our supply chains, and defence industrial base if we can find ways to fund and sustain the projects necessary for extraction and refinement.

It's great to see Goldy Hyder and the Business Council of Canada recognizing the role that venture capital must play in revitalizing Canada's defence industrial base.

Dual-use technologies are very clearly reshaping the modern battlespace and it has been ONE9, and other mission-focused investors, that have been finding, funding, and scaling these disruptive startups.

We couldn't have said it better ourselves. Canada needs to focus on the North and will only succeed by, with, and through our Inuit Nations and communities.

"Canada must defend its own national security and sovereignty issues and should restore its standing as a valuable and respected contributor to our security alliances. With a focus on the Arctic and wise policy decisions we can do so while responsibly working in a true partnership with our own Inuit businesses and communities."

"As the war in Ukraine continues, Russia is refining its approach to sustain its technological edge. From reverse engineering to overcoming export controls, these evolving strategies present new risks that demand proactive countermeasures."

"The reshaping of the geopolitical landscape means that new actors, such as the private sector, have an increased role in countering adversarial nations."