Fredericton's Lastwall raises $16 million to protect critical infrastructure logins
Lastwall, a Fredericton identity security company, has raised $16 million in a Series A extension led by BDC Capital's StrongNorth Fund, the company announced May 27. The New Brunswick Innovation Foundation and Frostbite Capital joined the round alongside existing investors Blue Bear Capital, 18West and BlueWing Ventures.
The round is one of the larger 2026 financings for an Atlantic Canadian security firm and an early sign of how the Business Development Bank of Canada's defence-oriented fund intends to invest.
What Lastwall sells
Lastwall's main product, IDCommand, checks each login attempt against more than 200 characteristics, including typing rhythm, mouse movement and hardware setup, according to BetaKit. When an attempt looks out of place, it asks for further authentication and alerts the security team. The company also markets zero-trust access controls and post-quantum cryptography, and says its products work in low-connectivity environments.
Lastwall built its technology first for the U.S. Department of Defense and holds FedRAMP Moderate authorization, which allows use across U.S. federal agencies. Its customers are government agencies and critical infrastructure operators in Canada and the United States.
Plans for the money
The company said it will use the funds to extend its security architecture across North American municipal utilities, defence infrastructure and public-sector cloud portals, and to pursue procurement opportunities in Canadian defence, The SaaS News reported. Peter Dawe, BDC's vice-president of defence strategy and a recently retired major-general with 35 years in the Canadian Armed Forces, is joining Lastwall's board.
Founder and chief executive Karl Holmqvist, who is based in Vancouver, told BetaKit that Canada and the U.S. cannot be defended separately. He suggested the company may raise more money, possibly including venture debt.
Why it matters
Stolen and misused credentials remain one of the most common ways into utility and government networks, and continuous identity checks are one way operators are trying to catch an attacker who already holds a valid password. The financing also reflects a broader shift in Canadian venture funding toward dual-use technology with defence applications.
