NCFP offers a special project finance service to startup companies. Companies that require completion of initial high-risk projects in order to become fundable by traditional sources of capital can apply to NCFP for direct financing of the project. This service provides seed-level financing to companies when they are least fundable in spite of having a promising business.
A company may apply to NCFP for project finance services if the company requires financing of an initial critical project in order to make the business viable and/or fundable. NCFP does not provide direct cash investment in companies. Instead, NCFP will finance the completion of a key project. Typical projects that NCFP will finance include: prototype design and development, device trials, proof-of-concept studies, and other similar high-risk projects.
NCFP offers this service to suitable companies only. To be eligible for the NCFP project finance service, a company must:
- Present a solid business proposal outlining how completion of the proprosed project will make the company fundable.
- Pay a refundable upfront fee that demonstrates the commitment of the company and its founders. NCFP will refund the fee (excluding administrative costs) if either NCFP or the client company choose to cancel the service.
- Provide NCFP with a fully specified project that can be funded at a fixed price.
- Pay NCFP a nondilutable percentage of the company equity. The equity will be returned to the company by NCFP should either NCFP or the client choose to cancel the service.
The Project Finance Program
Once NCFP has agreed to finance the project, NCFP will raise the moneys necessary to pay for the project and will directly dispurse all funds necessary to complete the project. As an operating foundation NCFP is not permitted to donate funds directly to a company. However, NCFP is authorized to provide any and all services necessary to complete a project.