Community Development Venture Capital Alliance

Northeast Ventures
202 West Superior Street, Suite 747, Duluth, MN 55802
Telephone: (218) 722-9915
Fax: (218) 722-9871
Website: www.neventures.com
Email: ventures@neventures.com

Key Personnel:
Nick Smith, Chairman
Greg Sandbulte, President, CEO
Mark Phillips, Vice President
Tom Van Hale, Vice President

Established: 1989

Total Committed Capital: $15.7 million, goal of $25 million by 2005

Amount Invested: $7.7 million (portfolio as of 6/30/02) or $15.0 million (since inception)

Geographic Focus: Minnesota (see Investment Criteria for details)

Background
Northeast Ventures (NVC) is a venture capital firm focusing its investment activity in Aitkin, Carlton, Cook, Itasca, Koochiching, Lake and St. Louis counties. Northeast Ventures seeks growth-oriented businesses in which it can invest, assist with and participate in the company's growth, and eventually realize financial returns based on appreciation in value of the investee company. NVC was established in 1989 in Duluth, Minnesota as a permanent source of venture capital that could be used to support the region's recovery and growth following the collapse of the mining industry.

Social Mission
NVC's mission is to promote regional economic development in northeastern Minnesota through investments in growing businesses.

Investment Information
The Fund has previously successfully exited six investments and is currently invested in 15 businesses. Within Minnesota, NVC focuses specifically in Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St. Louis counties, but can invest up to 15% of its assets in other parts of the state. The Fund makes investments in all industries, excluding locally or regionally focused retail businesses. NVC generally invests between $250,000 and $500,000. The Fund has co-invested with other CDVC funds, traditional VC funds, and angel investors, and would like to increase its co-investments in the future. Though Northeast Ventures may seek to leverage its investment by securing additional sources of appropriate financing, and while personal equity will be viewed positively, neither additional outside financing nor personal financial involvement are mandatory prerequisites to Northeast Ventures involvement. NVC makes investments in growth-oriented businesses at all stages of development.