The revitalization of the Newfoundland and Labrador Angel Network is gaining traction, as can be seen in the numbers. Membership last year tripled from 10 to 30, and the group that had no financing deals in 2011 is now preparing to close its third for 2012.

NLAN is not a large organization, but after a few years of uneven perfornance it is heading in the right direction and channeling its members' money into promising enterprises. Under its stewardship, angels have backed three different tech companies with global ambitions, and it is hoping for a fourth funding before the year is out.

"The key to the whole process is we took the opportunity to assess where we were going and asking whether it was desirable to have an angel network," said NLAN Chair Gary Follett in an interview last week. "The answer was a resounding `Yes’, so we set out to renergize the effort."

The rebirth of NLAN was not an easy process. Early in 2011, the organization was down to about 10 core members. But the St. John's business community is renowned for the unity of purpose between the private sector, academia and government. So NLAN partnered with several organizations to help with the turn-around.

NLAN already worked closely with the St. John's Board of Trade, whose Chief Executive Officer Nancy Healey provides administration for the group. And Grant Thornton's Leanne Kelly had developed a role in analysing the startups that applied for funding and determining who might be ready for investment.

Last year, the board struck new partnerships with such organizations as the Genesis Centre, the commercialization arm of Memorial University, and the provincial government's Department of Innovation, Business and Rural Development.

The board concurrently went on a membership drive, increasing its numbers to 30 by late 2012 with plans to increase the number to 50 within two years. It is even hoping to attract expat Newfoundlanders who are interested in investing in their former home.

And it also developed a structure for funding startups, so 10 to 12 companies would be in a preparatory phase, a sort of pipeline. NLAN works with these companies, helping them to improve their pitches, and often letting them pitch a single angel in order to get feedback. “Our job is to get them to the level that they can make a pitch and we will be confident they will be listened to,” said Kelly. Follett added the network stresses that each successful company must have a sales-oriented outlook, and not just be the creator of some interesting technology. The executive selects the best to pitch to the full membership and seek funding.

The hard work paid off this year as NLAN chose three companies to back. Follett said the network's members have already backed two companies -- a software company targeting the healthcare system, and another software maker in the financial services realm. He added NLAN is close to closing its third software deal of the year. Citing confidentiality clauses, NLAN declined to name any of the companies.

Follett added the network aims to fund about four more startups next year.

NLAN launched in 2008 with 193,000 in seed financing from the Atlantic Canada Opportunities Agency. In its first four years, its members invested $1 million in young companies, and helped to attract a further $2.7 million from other sources. In February of this year, the company received an additional $160,000 of funding from ACOA.

The rejuvenation of NLAN provides another source of seed funding for Atlantic Canadian startups. The Halifax-based First Angel Network has provided funding to 19 companies, including at least one in each Atlantic Province, and a few smaller angel groups operate in New Brunswick.