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.

Refer to the Development Fund website or contact the ND Development Fund staff directly.