Central Idea

The North East Venture Fund (NEVF) has emerged as a catalyst for startups in the region.
Since its inception, NEVF has invested in 37 startups, injecting a total of Rs 56.84 crores into the entrepreneurial ecosystem.

What is North East Venture Fund (NEVF)?

Establishment: The NEVF, launched by the government in 2017, has emerged as a catalyst for startups in the region.
SEBI Approval: NEVF is categorized as a Category I Venture Capital Fund under SEBI’s Alternative Investment Funds (AIF) Regulations, 2012.
Investment Committee: An independent Investment Committee, comprising experienced professionals from venture funding, private equity, and developmental banking, makes investment decisions.
Regulatory Reporting: Periodic reporting on operational and compliance aspects is presented to NEVF contributors and relevant bodies as mandated. This ensures transparency and adherence to regulations.
Regulatory Oversight: The fund’s operations are subject to monitoring by the Reserve Bank of India (RBI) and Comptroller and Auditor General of India (CAG) through regular audits.

Fund Corpus: NEVF was established as a closed-end fund with a target corpus of Rs. 100 crore.
Contributors: NEVF has achieved its target corpus through contributions: Rs. 30 crore from North Eastern Development Finance Corporation Ltd. (NEDFi), Rs. 25 crore from Small Industries Development Bank of India (SIDBI), and Rs. 45 crore from the Ministry of Development of North Eastern Region (MDoNER).
MDoNER Contribution: MDoNER’s contribution was provided as an interest-free loan to NEDFi, repayable in a lump sum after 15 years.

Geographical Distribution: The startups benefiting from NEVF are spread across various North Eastern states, with 24 in Assam, six in Manipur, three in Meghalaya, two in Arunachal Pradesh, and one each in Tripura and Sikkim.
Job Creation: The startups supported by NEVF have collectively generated 4,812 employment opportunities since FY18. Among these, 3,906 were male and 906 were female employees. Additionally, 4,076 employees were unskilled, while 736 were skilled workers.
Assam’s Dominance: The state of Assam witnessed the most significant job creation through NEVF-supported startups, contributing to over 4,000 job opportunities.
Focus Areas: The new guidelines prioritize projects that create common facilities for manufacturing, testing, packaging, research and development, and training related to natural resources found in the NER and Sikkim. This includes areas like agriculture, forestry, sericulture, and bamboo cultivation.