Description/Purpose:
Northeast Ventures 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 (start-ups or expansions) 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.

Loan Amounts:
Northeast Ventures has no absolute maximum or minimum participation amounts. Three points require clarification in this regard:

The actual structure of an investment by Northeast Ventures (i.e. loan, purchase of stock, blended instrument, etc.) will be tailored to the needs of the business, but will, in all cases, include some present or future ownership participation by Northeast Ventures.

While Northeast Ventures has no absolute minimum, an assessment will be made of the total projected involvement by Northeast Ventures in a particular company, and at some point (e.g. less than $100,000), Northeast Ventures may not wish to pursue an investment.

Though Northeast Ventures may have an upper limit on investments based on its own capital, that level will increase over time and there is no upper limit on the size project that Northeast Ventures can structure using co-investors.

Eligible Applicants:
Growth oriented companies seeking to start-up within, relocate to, or expand within the seven counties of Northeastern Minnesota, excluding locally or regionally focused retail businesses.

Other Funding Required:
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.

Other Special Requirements:
Identified and addressed on a case by case basis.

Allowable Use of Proceeds:
Any legitimate business purpose.

Term of Loan:
For Northeast Ventures to realize its financial return objectives, it must be able to exit its investments profitably within a reasonable time frame. Although there are no absolutes in virtually every aspect of a Northeast Ventures investment, Northeast Ventures anticipates that it will exit its investment within five to eight years.

Interest Rate:
The rate of return sought by Northeast Ventures is negotiable, based on the inherent risk and potential return associated with a specific investment opportunity.

Application Process:
All inquiries pertaining to Northeast Ventures should be directed to:

Name: Northeast Ventures Corporation
Address: 202 W Superior St., Suite 747

Duluth, MN 55802
Phone: (218) 722-9915
Fax: (218) 722-9871
Email: ventures@neventures.com