Provincial Investment in Tech Company to Produce New Skilled Jobs
Investing in a Diverse Economy
As part of an ongoing commitment to encourage economic diversity and support the growing technology sector, the Provincial Government today joined with Newfoundland and Labrador-based Verafin, a recognized leader in financial crime detection and prevention software, to announce a major expansion for the company. Approximately 90 highly-skilled jobs will be added to the local market as a result of a joint investment between the Provincial Government and Verafin.
“It is vital that the Government of Newfoundland and Labrador invests in emerging sectors in order to diversify the economy and create an environment which supports entrepreneurs and increased employment opportunities. These are key elements of our government’s Population Growth Strategy, as we work to create new and exciting opportunities in Newfoundland and Labrador. Technology companies like Verafin are generating wealth and growing the local knowledge-based talent pool, to the benefit of our entire province. This investment will provide skilled job opportunities and significant benefit to our economy.
– The Honourable Darin King, Minister of Business, Tourism, Culture and Rural Development.
Verafin has committed to approximately 354 person years of employment from new incremental hires in Newfoundland and Labrador over five consecutive years. In return, the Provincial Government is providing a total of $6 million to assist with wages for new hires. Along with $4.8 million from Verafin, and an investment from Spectrum Equity, a private equity firm based in Boston and Silicon Valley, the expansion project will create well-paying jobs, local economic spin-offs, and support growth in the overall sector. It is anticipated to return more than $3 million to the provincial treasury over a five-year period and based on projected payroll, will contribute a total economic impact of approximately $70 million.
This investment is in the form of a forgivable loan from the Investment Attraction Fund, and will be forgiven as the company reaches employment targets.
“Continuous improvement is key to keeping a step ahead of financial crime, so we strive to find the very best and brightest developers and engineers to further advance our solution. This new investment will fuel further product innovation and help position Verafin as the North American leader in cloud-based cross-institutional fraud detection and anti-money laundering collaboration software.”
– Raymond Pretty, Verafin co-founder and VP of Development
More information on Verafin can be found in the attached backgrounder.
Live Here, Work Here, Belong Here, A Population Growth Strategy for Newfoundland and Labrador, 2015-2025 is the Government of Newfoundland and Labrador’s 10-year plan to support individuals and families. The strategy will ensure investments and programs are aligned to encourage individuals to choose Newfoundland and Labrador to live, work and raise a family. The Population Growth Strategy is supported by four action plans covering the main elements of population growth – workforce, families, communities and immigration. For more information visit www.gov.nl.ca/populationgrowth/
Budget 2015 includes approximately $44.4 million to support start-up businesses, emerging growth sectors, and regional development activities. This includes $13.5 million for initiatives to attract business to Newfoundland and Labrador. The Investment Attraction Fund is designed to attract investment to the province by providing financial assistance toward start-up or business expansion.
Approximately 90 highly-skilled jobs will be added to the local market as a result of a Provincial Government investment in the expansion of Verafin.
Verafin has committed to approximately 354 person years of employment from new incremental hires in Newfoundland and Labrador over five consecutive years. In return, the Provincial Government is providing a total of $6 million to assist with wages for new hires.
The Population Growth Strategy is supported by four action plans covering the main elements of population growth – workforce, families, communities and immigration. For more information visit www.gov.nl.ca/populationgrowth/
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Director of Communications
Department of Business, Tourism, Culture
and Rural Development
Director of Marketing
Verafin a Recognized Leader in Financial Crime Detection and Prevention Software
Founded in 2003 by local entrepreneurs, Verafin is a St. John’s-based company that sells fraud detection and anti-money laundering software to financial institutions, mainly in the U.S. It is a graduate of Memorial University’s Genesis Centre, a facility which provides incubation services for new technology-based start-up companies.
Having grown to more than 200 employees, Verafin has been included in Canada’s Top 100 employers, a list released annually by the Globe and Mail, as well as being named the Best Place to Work in Atlantic Canada.