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.
Under this management agreement, the Development Fund offers a number of flexible gap financing options for new or expanding primary sector businesses in North Dakota. Funding can be in the form of traditional debt, or a stock equity, The features of either a stock investment or a debt funding will be negotiated on a case by case basis.
The borrower must be a primary sector business located or doing business in the state of North Dakota.
Proceeds of this program 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.
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 deemed as primary sector and must have the potential to return 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.