The new Venture Newfoundland and Labrador fund has announced its first investment is in St. John’s-based Sequence Bioinformatics, which analyzes genetic data to help prevent diseases.

Venture NL said Tuesday it has invested $300,000 in Sequence as part of a seed round worth $500,000 in equity funding. The other $200,000 came from an angel investor based in Ontario.

The announcement marks the beginning of the portfolio for Venture NL, which has received funding from the Newfoundland and Labrador government, BDC Capital and private investors. It is being managed by Pelorus Venture Capital, a subsidiary of Halifax-based GrowthWorks Atlantic.

Founded in 2013, Sequence works with partners to analyze vast sets of data from gene pools to get a deeper understanding of which people are at the greatest risk of contracting a disease. It recently signed an agreement with Memorial University to use the university’s genetic databank to study colon cancer.

“I like data plays,” said Pelorus director Chris Moyer when asked why the fund chose Sequence as its first investment. “Though some see it as a bio startup, I see it as a data play. They are creating a data library on top of which you can build a precision medicine (application.)”

Sequence Bio was founded by entrepreneurs Tyler Wish and Chris Gardner in 2013 to capitalize on Newfoundland’s genetic gold mine. The island has a rare — possibly unique — genetic grouping of families that have lived on the island for generations and who have distinct genetic markers.

Memorial has a genetic databank with more than one billion points of data. Sequence Bio has access to the members of the databank who have had colon cancer and consented to be part of the study.

“We use a combination of available technology to analyze genetic data,” Gardner said in an interview. “The people we partner with have an expertise that is the best in the world. It’s not just about the technology; it’s also about the people and their expertise.”

Sequence plans to work on the colon cancer project with a California company whose technology can analyze genetic data. The study is just the beginning of what Sequence and Venture NL are planning in the coming years.

Moyer said Venture NL, which is expected to have $15 million to $20 million, is working on other investments and expects its next announcement in September. The fund also has the capacity to do follow-on funding in portfolio companies like Sequence, assuming they meet their milestones. The follow-on funding could amount to five times the original investment, said Moyer.

Sequence is now taking part in the Canadian Technology Accelerator in Boston, a program organized by the Canadian Consulate in the Massachusetts capital that capitalizes on the city’s biotech ecosystem.

“We wouldn’t be able to pursue this without this funding,” said Gardner, adding that the launch of Venture NL has greatly improved funding opportunities in his area.

“There’s been a limited ability to raise capital within Newfoundland, especially in the biosciences,” he said.

“To get investment here at home, it’s great.”