The North East Venture Fund (NEVF): An Essential Platform for Boosting Startups in North Eastern India

Introduction

In an age where startups are emerging as engines of economic growth and social innovation, the North East Venture Fund (NEVF) serves as an indispensable lifeline for budding entrepreneurs in North Eastern India. NEVF is a pioneering initiative in the region aimed at nurturing and promoting entrepreneurship, fostering economic growth, and creating jobs. Registered as a Category I Venture Capital Fund under the Securities and Exchange Board of India (SEBI) Alternative Investment Funds (AIF) Regulations, 2012, the NEVF has been instrumental in driving startup growth and development in the region.

The Purpose of NEVF

The primary goal of the NEVF is to identify unique business opportunities in the region, offering financial support to startups that harness these opportunities to provide value-added solutions to consumers. Besides, the NEVF encourages entrepreneurship among marginalized sections through the branch network of North Eastern Development Finance Corporation Ltd. (NEDFi) which spans all states of the North Eastern Region (NER).

Mechanism of Operation and Funding

An independent committee, comprising seasoned professionals from venture funding, private equity, and developmental banking fields, makes the investment decisions. The NEVF was established as a closed-ended fund with a target corpus of Rs. 100 crore. It has already received its targeted corpus from contributions from NEDFi, the Small Industries Development Bank of India (SIDBI), and the Ministry of Development of North Eastern Region (MDoNER).

As a regulatory measure, periodic reporting on operations and compliance with regulations is presented before the contributors of NEVF and other concerned bodies in a structured format. Additionally, fund operations are monitored by the Reserve Bank of India (RBI) and the Comptroller and Auditor General of India (CAG) through periodic audits.

Boosting Entrepreneurship and Employment

The startups supported by NEVF have generated a significant number of jobs, including skilled and unskilled labor, and have also encouraged female participation. State-wise and year-wise data on employment generated through these startups is presented in Annexure II.

Successes and Outreach Efforts

To further its reach, the NEVF has undertaken a series of initiatives to tap into the entrepreneurial potential in the remote areas of NER. One such effort was the Startup Investment Fest conducted in March 2022. This online application process for investment has been a game-changer, garnering significant interest from the far-flung regions of NER.

Five Benefits of NEVF Explained

1. Catalyzing Economic Growth: By investing in startups, NEVF spurs economic activity and growth in the North Eastern Region.
2. Job Creation: Startups supported by NEVF have been successful in generating significant employment opportunities in the region.
3. Promoting Innovation: NEVF stimulates innovative thinking by providing necessary financial support to the startups which bring unique, value-added solutions to the market.
4. Reaching Marginalized Sections: Through NEDFi’s branch network, NEVF reaches out to and supports startups from marginalized sections, thereby promoting inclusive growth.
5. Women Empowerment: NEVF has played a pivotal role in promoting women-led startups, thereby empowering women in the region.

Annexure-I

Investment in startups by the North East Venture Fund (NEVF) since inception:

Annexure-II

Employment generated through NEVF supported start-ups:

This information was given by Union Minister for Ministry of Development of North Eastern Region G. Kishan Reddy in a written reply in Lok Sabha.

Address: NEDFi Venture Capital Limited, NEDFi House, Dispur, G.S. Road, Guwahati, Assam, PIN – 781006