FUND MANAGER ELIGIBILITY

 

STEP ONE: ARE YOU A "VENTURE CAPITAL FIRM"?

A “venture capital” firm makes equity financings that are provided for starting up, expanding, or relocating a company, or related purposes such as financing for seed capital, research and development, introduction of a product or process into the marketplace, or similar needs requiring risk capital.  This includes, but is not limited to, financing classified as venture capital, mezzanine, private equity, private credit, venture debt, buyout or growth equity. 

If you answered YES to Step One, move on to Step Two below.  If you answered NO, your firm is not eligible for an investment by NLF at this time.

 

STEP TWO: DOES YOUR VENTURE CAPITAL FIRM INVEST IN "TECHNOLOGY BUSINESSES"?

“Technology businesses” means a company that has as its principal function the providing of services, including computer, information transfer, communication, distribution, processing, administrative, laboratory, experimental, developmental, technical, or testing services, manufacture of goods or materials, the processing of goods or materials by physical or chemical change, agriculture technology, computer related activities, robotics, biological or pharmaceutical industrial activity, or technology oriented or emerging industrial activity.

If you answered YES to Step Two, move on to Step Three.  If you answered NO to Step Two, your firm is not eligible for an investment by NLF at this time.  

 

STEP THREE: IS YOUR TECHNOLOGY-FOCUSED VENTURE CAPITAL FIRM AN "INDIANA VENTURE CAPITAL FIRM"?  

A. Does your technology-focused venture capital firm have a majority (50%+) of its employees physically located in Indiana?

If you answered YES to (A) above, you are an Indiana venture capital firm and are eligible for an investment by NLF.

If you answered NO to (A) above, please refer to question (B) immediately below.

B. Does your technology-focused venture capital firm have at least one (1) member of its general partnership (or equivalent entity) physically located in the State? 

If you answered YES to (B) above, you are an Indiana venture capital firm and are eligible for an investment by NLF.

If you answered NO to (B) above, please refer to question (C) immediately below.

C. Has your venture capital firm invested in at least one "Indiana company" (i.e., a company that is headquartered in or has at least one physical office and one full-time employee physically located in Indiana) in each of its prior funds (on average), or if your venture capital firm has only one prior fund, has it invested in at least two Indiana-based companies?

If you answered YES to (C) above, you are an Indiana venture capital firm and are eligible for an investment by NLF.

If you answered NO to (C) above, you are not eligible for an investment by NLF at this time.

REPORTING REQUIREMENTS

  1. NLF managers shall invest a minimum of one-times the aggregate amount of committed capital received from NLF in "Indiana companies" during the life of such manager's fund(s) where NLF is a limited partner. For instance, if NLF invests $5 million in an NLF recipient fund, the recipient fund shall endeavor invest at least $5 million in Indiana companies over the life of the fund.
  2. NLF managers will provide unaudited quarterly financial statements and capital account statements to 50 South Capital within 60 days of quarter end and audited annual financial statements within 90 days of year end.
  3. NLF managers will provide quarterly reports on the diversification of recipient portfolio companies.
  4. NLF managers will provide annual reports on the economic impact of recipient fund investments on the Indiana economy, including the growth of the employee headcount at portfolio companies, the growth of their physical real estate presence in Indiana and other associated economic data.
  5. For additional details on reporting requirements for all NLF managers, please see the attached Excel file as well as NLF's investment policy statement. This is the standardized reporting mechanism for all NLF managers to report to 50 South Capital on a quarterly/annual basis.