![]() For 2015, the only listed amount is a $50,000 venture capital investment.īatcheller sees the tax credit programs for angel fund investments and seed capital investments as restricting, and a major reason why investors may not want to invest higher amounts. According to MoneyTree’s state-by-state analysis, venture capitalists in North Dakota invested a total of $7.5 million in 2014. In Minnesota, venture capitalists invested almost $203 million in 2014, in companies 5 years old or younger, according to research firm PitchBook.īut in North Dakota, Batcheller said, the numbers are sorely lacking. In Austin, TX, he said, total funding from investors reached $993M in 2014. He pointed to other parts of the country as an example of what healthy investments look like. Low incentives = low investmentsĭavid Batcheller, President and COO of electronics manufacturer Appareo Systems, voiced his concerns about investment in North Dakota at the Mayor’s Summit in September. However, there are aspects to these existing programs that some see as a barrier to both investors and entrepreneurs. There are also a variety of finance programs, such as the Growth Initiative Fund which is run by the Greater Fargo-Moorhead Economic Development Center and aims to support “projects targeted at the emerging sectors.” They exist to finance primary sector businesses through the state, funded by tax payers dollars and allocated by the legislature. The North Dakota Development Fund and the Regional Rural Revolving Loan Fund are another access point. Seed capital investors, who are often company founders’ or friends and family raising initial funds, receive tax credits for up to $3.5 million. Angel funds, or groups of private investors who pool money together to make large investments, receive tax credits on up to 45 percent of each investment. Critics point to restricting tax credit policy and risk-adverse leadership as a hindrance to entrepreneurial growth throughout the state.Ĭurrently, North Dakota offers a variety of ways for entrepreneurs to access both public and private capital. In 2014, venture capital investments reached $48 billion - the highest level in over a decade.īut while the investment industry is alive and well in the U.S., some question if the same can be said for North Dakota. As the “startup fever” sweeps the country, investing in startups has hit an all-time high. ![]()
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