St. John’s-based Focus FS, a Software-as-a-Service company whose products encourage safety in industrial worksites, has closed a $1.4 million funding round, dominated by a “quasi-equity” contribution from  BDC Capital.

The capital markets arm of the federal government’s Business Development Bank of Canada said in a press release that it is providing $800,000 in quasi-equity financing. The statement did not define what it means by “quasi-equity”, though it is likely a form of convertible debt. It added that private investors also invested in the company.

Focus FS produces software that helps mining and oil and gas companies operate in remote, often harsh environments. Its Digital Worksite software is being used at oil and gas sites, metal mines, shipping ports, industrial warehouses, and construction worksites across North America. The company’s eMustering and Mine Rescue software is being used to locate injured workers and assist emergency responders during emergencies.

“We have proven that industrial worksite digitalization is saving our customers millions of dollars,” said Focus FS Co-Founder and CEO Jeff Brown in the statement. “More importantly, it helps save lives and reduce worksite injuries. We have been a part of the digital oil and mine reform and have built our products to create those data driven insights in the new digital connected ecosystem.”

The new funding will enable Focus FS to further invest in sales and marketing in key North American and international markets.

The Focus FS funding is the latest indication of a healthier environment for funding tech companies and innovators in Newfoundland and Labrador. In the last few years, funding has increased drastically, largely because of increased investment by Pelorus Venture Capital and Killick Capital. (Pelorus and Killick said they were not among the private investors in Focus FS.)

The funding deals that have been announced recently in Newfoundland and Labrador include a $600,000 equity raise by CoLab Software and GoldCorp's US$1 million (C$1.3 million) investment in Acoustic Zoom.

BDC Capital said it made its investment based on Focus FS’s strategy and future value, rather than on specific assets. This type of investment product is especially well suited to technology-based businesses operating on a recurring revenue model, like Focus FS, the statement said.

“Focus FS’s success to date is attributable in large part to their client-centric approach,” said Brian Whiteway, Director of Growth and Transition Capital in Newfoundland and Labrador at BDC Capital. “They have collaborated with industry experts and operators to understand their pain points and have built their products to address their needs. The company now feels it has reached a strong product-market fit and that it is ready to accelerate its growth.”