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Rural Venture Fund

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Rural Venture Fund Purpose To provide needed capital to an existing un-served market of small, growing, profitable North Carolina businesses with future job ... – PowerPoint PPT presentation

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Title: Rural Venture Fund


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Rural Venture Fund
Purpose To provide needed capital to an existing
un-served market of small, growing, profitable
North Carolina businesses with future job
creation potential. The Fund will fill a gap
that is not met by other organizations in the
commercial banks, intermediary lending, venture
capital or angel fund field.
3
Rural Venture Fund
  • Funding
  • N.C. Rural Center 2,500,000
  • GoldenLEAF 500,000
  • N.C. General Assembly 3,800,000
  • Total Capital 6,800,000
  • UNC System 75,000
  • (Technical Assistance)

4
Rural Venture Fund
  • Elements
  • New source of equity-like capital for existing
  • businesses
  • Priority given to businesses in Tier 1,
  • economically distressed counties
  • Options range from subordinated debt to
  • equity deals
  • Terms of ROI less demanding 5-10 yr plans
  • Range from 50,000 to 350,000

5
Rural Venture Fund
  • Elements, contd
  • Existing businesses only no start-ups
  • Job growth potential required
  • Fund will collaborate with SBTDC and UNC
  • School System for intake and due diligence
  • Businesses agree to tailor-made package of
  • technical assistance as recommended by
  • SBTDC staff.
  • Packaging tranches from different funding
  • sources

6
Rural Venture Fund
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Rural Venture Fund
  • University Partners
  • Western Carolina University
  • Appalachian State University
  • N.C. A T University
  • N.C. Central University
  • N.C. State University
  • UNC Pembroke
  • East Carolina University

8
Rural Venture Fund
  • Fund Structure
  • Two Advisory Groups
  • RVF Advisory Board
  • - consists of 7 individuals
  • - meets as needed to discuss Fund
  • progress
  • RVF Investment Committee
  • - consists of 7 individuals
  • - meets quarterly, or as needed, to review due
  • diligence and make deal
    recommendations
  • Investment decisions made by Rural Center
  • President and VP of Rural Development
  • Programs

9
Rural Venture Fund
  • Deal Structure Scenario
  • Convertible Subordinated Mortgage Bonds
  • 5 year interest only payments
  • Junior collateralization position
  • Ability to convert debt to equity after
  • specified time period

10
Rural Venture Fund
  • Outreach Marketing
  • Statewide regional sessions in operation
  • Sessions strategically located within
  • Tier 1 clusters
  • Collaboration with NCIF of The Conservation
  • Fund
  • Collaboration with SBTDCs

11
Rural Venture Fund
  • Contacts
  • Don Stewart, Director
  • Cell 919-605-5210
  • dstewart_at_ncruralcenter.org
  • Ashley Crane, Coordinator
  • Office 919-250-4314
  • acrane_at_ncruralcenter.org

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