University Student Entrepreneur Seed Fund Dakota Fund

The UND Center for Innovation Foundation has received $75,000 from the Dakota foundation to establish a loan fund to seed student ventures in North Dakota. The loan fund, the University Entrepreneur Seed Fund Initiative, will provide college-aged youth or recent graduates with low-interest loans or short-term equity investments to cover start-up costs for their ventures. Participating students will be paired with entrepreneur mentors and will receive entrepreneur assistance from the Center for Innovation.

The program will assist young entrepreneurs by providing seed capital they would not otherwise have access to. This venture program will also contribute to economic development through creation of new startups launched by creative students. Bart Holaday, and his wife Lynn Villella Holaday “We wanted to help enterprising college students start viable companies while in college, which will help them become self-reliant as we stimulate the economy of North Dakota.”’

The University Student Entrepreneur Seed Fund will provide undergraduate and graduate students and recent graduates with opportunities to launch their own ventures. The Fund benefits university entrepreneurs by providing seed capital to individuals who would not otherwise qualify for conventional financing because of lack of collateral or equity. Entrepreneurs will be paired with an entrepreneur mentor with careful attention to matching interests and talents.

Continued creation, cultivation, and growth of entrepreneurs and entrepreneurial ventures are imperative for the economic health of North Dakota and other rural areas. The creation of the academic entrepreneurship programs at undergraduate and graduates levels at UND and the services provided by the Center for Innovation are a positive step toward that end. Establishing a University Student Entrepreneur Seed Fund to finance the start-up of university students’ and recent graduates’ ventures is a logical next-step toward fostering entrepreneurship in North Dakota.

Start up costs that will be incurred by university student and young alumni entrepreneurs will vary, therefore the loan amounts will be proportional for the University Student Entrepreneur Seed Fund. Most loans will fall into the $5,000 to $15,000 ranges. It is expected the funding would not exceed 50 – 75 % of the total funding required to launch the venture.

All requests for start-up funds will be evaluated on a case-by-case basis, due to the varied needs of start-up ventures. Participants will receive a flexible-interest loan with an individualized payment plan. A 6% interest rate on the loan per annum will be initiated upon acceptance by the Center for Innovation.

University Student Entrepreneur Seed Fund Program Activities Checklist:

• The University Seed Entrepreneur Seed Fund program will primarily target University of North Dakota students but the program will also be available to recent alumni and other qualifying North Dakota or NW Minnesota students between the ages of 18 to 30
• Participants must successfully complete entrepreneur training from a source approved by the Center for Innovation. Sources of training may include: the Tech Savvy Entrepreneur Course(a joint venture of the North Dakota University System), NxLevel (administered by the Small Business Development Centers), Entrepreneurship courses from the UND College of Business and Public Administration, individualized instruction provided by the Center for Innovation, or other programs that may be available and appropriate for the individual
• Prospective participants submit their business plan for consideration as the first step in program participation, following the Center for Innovation guidelines set forth for proper business plans (Business Plan Step-by-Step Workbook, and Ultimate Business Planner Software and the Sample Business Plan Format Checklist)
• After reviewing business plan, prospective entrepreneurs will be interviewed on venture plans, commitment, market strategies, etc.
• The Center for Innovation staff may research typical start-up costs of similar ventures, to ensure students receive adequate capital and to verify that their start-up costs are reasonable
• Entrepreneur participants must sign a Promissory Note before receiving funding

Entrepreneurs must meet with Center for Innovation staff on a monthly basis for up to date reports of venture success. See a list of student entrepreneurs who have applied for and received a short term loan through the seed fund.

For more information contact Bruce Gjovig at the Center for Innovation
701-777-3132.