Venture Capital Fund
BND’s New Venture Capital Fund is managed by the North Dakota Development Fund, a division of the North Dakota Department of Commerce.
The goal of the New Venture Capital Fund is to stimulate private sector investment and promote diversification of the economy by supporting a variety of pre-revenue; mid-stage and late stage startup companies. This fund offers a variety of financing options in the form of traditional or convertible debt and equity investment. The structure of the investment is negotiated on a case-by-case basis.
The company must be a business located or doing business in the state of North Dakota.
Proceeds may be used to fund the working capital, equipment or real property needs of a North Dakota business.
The funding limit is generally no greater than $300,000 per business. In certain instances, higher investment levels or follow-on investment will be considered.
The rate is negotiated on a case-by-case basis, but is generally less than the typical market rate for a project having similar business risk.
The business must be innovative, have a unique market aspect or customer base, be scalable and have the potential to return a significant benefit to the state of North Dakota.
The fund’s investment will generally seek to take a security interest in the assets of the business. This will be negotiated on a case-by-case basis and will be a function of the type of investment made by the fund.
Interested applicants should contact the North Dakota Development Fund directly.