N.L. marine technology company gets $1.1 million

By Steve Bartlett

FOR THE SOU’WESTER

Transcontinental Media/The Telegram

Capt. Anthony Patterson described Thursday, Sept. 18 as a "very good day" for Virtual Marine Technology.

The St. John, N.L.'s-based company received a $1.1 million investment from the GrowthWorks Atlantic Venture Fund and, as its president and CEO, Patterson was banking on the money to help the firm expand and go global.

"What this investment does for us is it really let's us get out in the international marketplace and really put the technology we've developed into the hands of those that can use it," he said.

"Our goal is that some day somebody is going to be in an evacuation scenario and, because they've been on our simulators, they will know what to do and they will save themselves."

Started four years ago, Virtual Marine Technology specializes in simulation-based safety training for small marine craft. The technology employed by the company was developed in St. John's, and grew from decades of research at Memorial University and the National Research Council's Institute for Ocean Technology.

Sensing global market potential, Patterson said the startup began looking for capital and made sure it kept itself in the view of investors.

The effort is paying off.

Virtual Marine Technology received backing from the province and an angel investor a year ago, and with this announcement, it has the support of GrowthWorks Atlantic, which backs Atlantic Canadian companies and provides tax-advantaged investments to investors.

Thomas Hayes, president and CEO of the fund, said the tech firm was attractive for a number of reasons, including its strong management team, market potential and innovative use of technology.

That the company had an angel investor didn't hurt either.

"He's put some of his money on the table and that gives confidence to put our money on the table," Hayes said.

The backing of Virtual Marine Technology is significant for another reason. It marks GrowthWorks Atlantic's first investment in a Newfoundland and Labrador company. Hayes hoped it demonstrated to stakeholders - government, investment advisors and investors themselves - that the fund is serious about making good investments.

"And that's key," he said. "We looked at a lot of companies before we made our first investment and the reason for that is we want to make sure this is an appropriate investment for the fund that will return shares and profits to our shareholders."

GrowthWorks Atlantic, Hayes said, looked at about 50 businesses in the province before supporting Virtual Marine Technologies. He expects more investments to follow and estimates there will be a couple of deals a year.

"We're going to see more and more good opportunities here," he said.

Reg Anstey hopes Hayes is right. The president of the Newfoundland and Labrador Federation of Labour is also chairman of GrowthWorks Atlantic.

As a labour leader, he helped initiate the fund a few years ago. He wanted people to avail of tax breaks that accompany such a fund and also to keep investment money in the province to help start-ups such as Virtual Marine Technology.

"I have a really strong feeling about taking money from Newfoundland workers and others, and investing it in Newfoundland and Labrador," he said.

"That's really what this is all about."