North East Venture Fund (NEVF)
Source: PIB
GS III: Indian Economy
Overview
- News in Brief
- About North East Venture Fund (NEVF)
- Key objectives of the North East Venture Fund
Why in News?
Information related to North East Venture Fund (NEVF) startup funding was given by Union Minister for Ministry of Development of North Eastern Region.
News in Brief
- The startups, supported by NEVF, have identified the unique business opportunities available in the region.
- The details of the employment generated through these start-ups include the details of skilled and unskilled labors and female participation.
- To augment entrepreneurship opportunities among marginalized sections, NEDF has established its branch network across all the states of NER.
- Employment generated through NEVF supported start-ups are seen a drastic increase.
About North East Venture Fund (NEVF)
- North East Venture Fund (NEVF) is a government-backed initiative in India.
- It aimed at fostering entrepreneurship and supporting startups in the northeastern region of the country.
- The fund was established to encourage innovation, economic growth, and job creation in the states of the Northeastern region, which include Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim.
- NEVF was established as a close ended fund with a target corpus of Rs. 100 crore.
- The NEVF is managed and operated by the North Eastern Development Finance Corporation Ltd. (NEDFi).
- It is a is a public financial institution established to promote economic development in the Northeastern states.
- The fund is typically available to startups, micro, small, and medium enterprises (MSMEs) operating in various sectors and industries in the region.
- NEVF is registered as a Category I Venture Capital Fund under Securities and Exchange Board of India (SEBI) Alternative Investment Funds (AIF) Regulations, 2012.
Key objectives of the North East Venture Fund
- Financial Support: Providing financial assistance, including equity, to startups and MSMEs in the Northeastern region to help them scale up their businesses and bring innovative products and services to the market.
- Job Creation: Supporting ventures that have the potential to create employment opportunities in the region, thereby contributing to local economic development.
- Encouraging Entrepreneurship: Promoting a culture of entrepreneurship in the Northeastern states by providing financial backing to promising startups and entrepreneurs.
- Regional Development: Facilitating the growth of industries and sectors in the region that can leverage its unique resources and strengths.
- Inclusive Growth: Focusing on inclusive development by supporting businesses from diverse sectors and communities.
Investments
- The North East Venture Fund typically invests in companies with innovative ideas, growth potential, and a positive impact on the region’s economic and social development.
- The fund may take equity stakes in these companies, providing them with financial backing and business support.
Summary as Infographics
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