Lastwall lands USD $11.5 million to expand cybersecurity

Lastwall has raised USD $11.5 million in a funding round led by BDC Capital's StrongNorth Fund, with participation from NBIF, Frostbite Capital and existing investors.

The funding will support the Fredericton-based company's expansion across North America as it sells cybersecurity products to government, defence and critical infrastructure customers in the US and Canada.

Lastwall has built its business around identity and authentication systems for sensitive networks, including air-gapped and low-bandwidth environments. Its customers include the US Department of War and the Government of Canada, and it says it has spent close to a decade working in government settings.

The investment comes as public sector bodies and operators of essential services face growing concern over attacks on energy, telecommunications, transport and defence networks. It also coincides with a broader push by governments to prepare for security risks associated with quantum computing, which could weaken current encryption methods over time.

BDC Capital made the investment through its StrongNorth Fund, which was launched to back Canadian technologies linked to national security, defence modernisation and economic resilience. Lastwall is among the fund's first investments and its first in cybersecurity.

NBIF said its participation in the round was the largest single investment in its history. Blue Bear Capital, BlueWing Ventures and 18West also returned as investors.

The company recently received FedRAMP Moderate Authorisation, a US federal certification that allows suppliers to operate in government cloud environments with strict security requirements. Lastwall said the approval gave it access to the US federal market and strengthened its position as it expands in both the US and Canada.

Karl Holmqvist, Founder and Chief Executive Officer of Lastwall, linked the fundraise to the company's work with US government agencies and its push into Canada.

"We proved our model in the world's most demanding federal market," said Karl Holmqvist, Founder and Chief Executive Officer of Lastwall. "We earned FedRAMP Moderate Authorization, secured U.S. government systems, and built a platform for the realities of modern cyber warfare. Now, we're bringing those trusted capabilities home to help strengthen Canada's cyber resilience at a defining moment for national security."

Holmqvist said the company sees North American infrastructure protection as a cross-border issue.

"Lastwall intends to be at the center of the mission to protect our continent, which means helping defend critical systems on both sides of the border," said Holmqvist.

Investor backing

For BDC Capital, the deal reflects broader policy interest in supporting domestic suppliers in sectors tied to national security. Canadian officials have placed greater emphasis on sovereign technology assets in areas such as defence, semiconductors and cybersecurity as geopolitical tensions have risen.

Peter Suma, Managing Partner of BDC Capital, said Lastwall matched the investment mandate of the StrongNorth Fund.

"BDC Capital's StrongNorth Fund invests in Canadian companies developing defence‐relevant and dual‐use technologies," said Peter Suma, Managing Partner of BDC Capital. "Lastwall fits that focus: its identity platform addresses a critical vulnerability across defence, government, and infrastructure systems operating in increasingly complex and contested environments. This investment helps scale a Canadian capability that secures access to the critical systems our economy depends on, supporting a key focus of BDC: reinforcing Canada's economic sovereignty."

The deal also highlights the role of regional investors in Canada's cyber sector. New Brunswick has sought to develop a cluster of cybersecurity companies and research activity, with public and private investors backing local firms that can sell into international markets.

Jeff White, Chief Executive Officer of the New Brunswick Innovation Foundation, said the province had built momentum in the sector.

"New Brunswick has built a strong advantage in cybersecurity, and NBIF is proud to back companies like Lastwall that are turning that strength into global opportunity," said Jeff White, Chief Executive Officer of the New Brunswick Innovation Foundation. "This financing reflects our strong conviction in the team, the technology, and the market opportunity ahead as the company scales its trusted solutions in some of the world's most security-sensitive markets."

Board change

Alongside the financing, Peter Dawe has joined Lastwall's board of directors. He was recently appointed Vice President of Defence Strategy at BDC and has worked across defence strategy, technology investment and sovereign industrial development.

Lastwall's products are designed to control access across cloud, hybrid and disconnected systems, including operational technology used in sectors such as energy and utilities. The company argues that these environments require security tools that continue to function when networks are degraded, intermittent or isolated - conditions that can apply in both military and civilian infrastructure.

The latest financing gives Lastwall fresh backing as North American governments look for suppliers able to meet strict domestic and allied security requirements, following its FedRAMP Moderate Authorisation and its work inside US and Canadian government systems.