Native American Venture Fund | Smart Tribal Economics | Native American Venture Fund
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Smart Tribal Economics

 

NAVF proposes to provide Native American Tribes with 1) proper leadership, 2) a focused portfolio to leverage tribal sovereignty as a distinct competitive advantage, and 3) capital. Based on these factors   the “Funds” projected return would be far above that of a competitive fund having a similar portfolio matrix but not the tax advantages and other special benefits accruing to the Native American Tribes. The tribe holds the corporate assets but NAVF is privatizing the operational management of the tribal-NAVF enterprise portfolio.

Safeguards will be put into place to insure that the investments within the portfolio companies have a stable operating environment. In addition, the operational management would be allowed to make decisions within the portfolio’s companies. The creation of a tribal business development corporation or other business entity separated from tribal government can provide a number of advantages, as long as operational safeguards are addressed which would allow the NAVF’s holdings to:

 

  • Free the tribal council from micro-managing NAVF-tribal businesses and allow the council to focus on long-term development strategies and goals for their tribal government
  • Assign responsibility to operate and manage tribal businesses to those who have business skill and knowledge to do so
  • Provide a STRONG buffer between NAVF-tribal ventures and tribal politics
  • Provide a structure for the tribe to align government policies that are less subject to change by electoral politics
  • Provide a tribal exit strategy to acquire 100% of portfolio ventures (if desired by tribe as a control incentive) based upon a multiple return to NAVF
  • Leverage Native American “Core Competitive Advantages for the tribal-NAVF portfolio.”