Tech firms in Newfoundland and Labrador highlight the province’s collaborative business environment as a cornerstone of their growth, with expectations of even greater achievements ahead.
CoLab Software’s Rapid Expansion
CoLab Software, launched in 2017 by Memorial University engineering alumni Adam Keating and Jeremy Andrews, draws talent back from Silicon Valley. The firm now employs 180 people and aims to reach 300 by year’s end.
CEO and co-founder Adam Keating explains, “We started to realize that it’s possible to build anywhere. And the second part is, we actually just felt we had a much better competitive advantage building at home because people wanted to join.”
Keating notes their standout position in the province sets them apart from the crowded California market. “We’re incredibly proud now that we made that choice. Even if the flights are a little difficult getting in and out of the province, it is a really special part of what we do,” he adds.
Described as “ambitiously Canadian,” CoLab matches Silicon Valley’s drive while fostering global competitiveness among local peers. Last year, Deloitte’s Technology Fast 500 ranked it 57th fastest-growing in North America.
Keating envisions bold growth: “My goal is actually for Newfoundland and Labrador to raise more money than all of Atlantic Canada, maybe eastern Canada. Keep going. Why not? It’s totally possible to keep doing that and playing our size.”
He predicts two to four companies rivaling Verafin’s scale within five years, followed by more. Verafin, a homegrown online security firm, sold to Nasdaq for $2.75 billion US in 2020, sparking excitement for the next big success.
Investment Success Fuels Momentum
Chris Moyer, founding partner and president of Pelorus Venture Capital, credits a mix of factors—including investors like Killick Capital’s Mark Dobbin, Memorial University’s Genesis Centre, mentorship, and company collaboration—for the vibrant sector.
“We’ve seen it over and over again that the entrepreneurs, along with the right amount of capital, along with the right amount of mentorship and guidance can build world-class companies in St. John’s and the rest of Newfoundland and Labrador,” Moyer states.
The fund enters its third round, delivering strong returns: “For every dollar our investors gave us … in that first fund, we’ve now given a dollar and a half back. That’s a tremendous success.”
Initial doubts about scaling another Verafin given the population have faded. “Now all of a sudden, there’s two more that are clearly on their way to be that type of company,” Moyer says, with investors eyeing several more prospects.
Talent Drives Growth Amid Challenges
Brent Pretty, founder and CEO of AI financial advisor Verlo and a former Verafin employee, bases his startup in St. John’s for family and abundant talent. The company onboards initial customers ahead of a March launch.
“Ultimately, it’s an easy decision not to move because Newfoundland is an incredible place with a lot of talent,” Pretty affirms.
Yet, high “talent density” creates hurdles for smaller firms. “There’s only so much talent to go around. There are only so many people you can hire, and CoLab and Spellbook and Verafin are doing a fantastic job of hiring that talent,” he notes. “So for smaller startups like ourselves, it’s a little harder these days to find … those diamonds in the rough, because everyone is kind of wise to it and everyone’s looking for the same talent pool.”
