North East Venture Fund (NEVF) (APSC Assam Economy Notes)
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North East Venture Fund (NEVF)
North Eastern Development Finance Corporation Limited (NEDFi) in association with Ministry of Development of North Eastern Region (M-DoNER) has launched North East Venture Fund (NEVF), the first dedicated venture capital fund for the North Eastern Region.
The capital commitment to the fund is Rs. 100 crore with an initial contribution of Rs.75 crore consisting of Rs. 45 crore from Ministry of DoNER and Rs. 30 crore from NEDFi. The balance fund of Rs. 25 crore has been committed by Small Industries Development Bank of India (SIDBI) in-principle.
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.
The primary objective of North East Venture Fund (NEVF) would be investment in enterprises focused on Food Processing, Healthcare, Tourism, Aggregation of Services and IT located in the NER and to provide resources for entrepreneurs from the region to expand throughout the country.
It would also 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.
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 investments and implementation of the projects undertaken under NEVF are monitored on continuous basis, through submission of quarterly reports to Securities and Exchange Board of India (SEBI), customized Management Information System (MIS) and Independent Investment Committee meant for the purpose.