BISMARCK — The North Dakota Department of Commerce will soon make $13.6 million available to "early-stage" businesses in the state.
The soon-to-be-available equity and venture funds are part of the Angel Match Program administered by the North Dakota Development Fund. The program was announced via news release Tuesday, Dec. 6. Applications for the Angel Match Program open Friday, Dec. 9.
According to the news release, the program "was created to expand access to capital for underserved communities by focusing outreach, technical assistance, and capital investment in rural communities, tribal communities, and communities undergoing economic transitions such as coal communities."
Through the program, investments made by private entities into eligible businesses are eligible to be matched, up to a maximum of $250,000. Those private entities can be either individuals, LLCs, businesses, trusts or investment funds, the news release explained. Investors and businesses receiving investment must be and remain in compliance with state and federal securities regulations.
Businesses can apply only if the total financing round is $2 million or less, the news release added.
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In order to be eligible, businesses must:
- Be registered with the North Dakota Secretary of State.
- Be a primary sector business, as outlined by the Department of Commerce .
- Be headquartered in North Dakota and remain headquartered in the state for the duration of the program.
- Have fewer than 250 employees.
- Not have a principal that has been convicted of a sex offense against a minor.
State commerce commissioner Josh Teigen remarked the program would prove valuable in developing new businesses. “The Angel Match Program will serve as a vital tool in encouraging entrepreneurship and empowering early-stage North Dakota businesses by providing access to the capital needed to set a solid foundation for business endeavors,” Teigen stated via news release. ”We are excited to begin this new opportunity and are confident that we will see many positive economic outcomes from this program in the coming years.”
Funding for the program was provided by the U.S. Department of Treasury's State Small Business Credit Initiative. In total, North Dakota received $58.6 million in funds, which will be used for the Angel Match Program and a Direct Investment Program. The latter program is currently undergoing a final review.
For more information on the North Dakota Development Fund and the Angel Match Program, visit commerce.nd.gov/economic-development-finance/development-fund .
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