North Eastern Development Finance Corporation Limited (NEDFi) in association with Ministry of Development of North Eastern Region (M-DoNER) has launched the first dedicated venture capital fund for the North Eastern Region Namely “North East Venture Fund”.
The primary objective of North East Venture Fund (NEVF) would be to invest in enterprises focused on and not limited to Food Processing, Healthcare, Tourism, Aggregation of Services and IT&ITES located in the NER and to provide resources for entrepreneurs from the region to expand throughout the country. The investment focus of the NEVF will be early and growth stage investment mostly in enterprises involved in the fields of, Food processing, Healthcare, Tourism, Aggregation of Services and IT & ITES. NEVF would inter alia invest in areas such as development of new products and services, technological up gradation, expansion or diversification, process improvement and quality improvement with the purpose of creating value for all stakeholders.
Investments will typically be in startups, early stage and growth stage companies with new products and technologies or innovative business models which have the potential to bring superior value proposition to the customers and clients and high growth in earnings and profitability and also in companies undertaking expansions which already have sound financial performance. Investment Manager will select businesses for investments which have high scalability and can reap dividend by quickly and cost effectively reaching to their target customers. The Fund will also cover organizations which are in partnership / proprietorship form with the aim to convert them into company form of organization, so that the Fund is able to invest in them. Each investment will be limited to a minimum of Rs.25 lakh and a maximum of Rs.10 crores.
The objective of the Fund is to contribute to the entrepreneurship development of the NER and achieve attractive risk-adjusted returns through long term capital appreciation by way of investments in privately negotiated equity/ equity related investments.