Angels, Incubators and Atlantic Canada's $2.75 Billion Success Story
Last week, the Canadian tech ecosystem celebrated a big win with the news that Nasdaq had acquired Newfoundland and Labrador-based, online security and anti-fraud company Verafin for $2.75 billion USD. This deal will see the Verafin executive leadership team remain in place, headquartered in St. John’s and Nasdaq will invest additional funds in Memorial University to support the province’s future tech leaders.
The Verafin story demonstrates the power of a nationally connected ecosystem – with funding from local angel investors, various levels of government, an early customer with a Western Canada credit union, venture capital in Southern Ontario, and broader institutional investment. NACO member Genesis Centre provided incubation, mentorship and a strong talent pipeline leveraging its Memorial University network, along with colleges and universities across Atlantic Canada.
Nasdaq to buy Verafin $2.75 Billion Cash Deal
Although Canada’s innovation ecosystem has grown by leaps and bounds in recent years, there are significant gaps, particularly where it comes to access to early-stage capital. In Atlantic Canada for example, there is no formal angel network and Entrevestor has reported an approximate 25% decrease in angel investment last year. By addressing these gaps, we can facilitate more homegrown success stories and ensure that the next generation of scale-ups is able to access the capital, customers and talent they need to succeed.