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.
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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)

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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

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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

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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

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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

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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

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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

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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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