Invest in True Value..!

True Value through joint entrepreneurship…!

Truvalu works with entrepreneurs and invests capital in local companies in the agrifood sector. This enables them to increase their sales and profits and create value in their value chains. It also contributes to the economic, social and environmental sustainability of local communities.

Through a self-developed ‘co-entrepreneurship’ approach, Truvalu now participates as a strategic partner and minority shareholder in over 40 companies in various emerging markets. Truvalu provides capital, business advice, access to networks and markets, support in trade, (technical) knowledge and access to technology, internationally, regionally and locally.

Reference company
Ecodudu is an innovative company that uses the so-called ‘black soldier fly’ to convert biological waste, such as avocado and mango pulp, into organic fertilizer. In addition, the larvae of this fly are a rich source of protein, making them an important ingredient for producing animal feed.

‘We are pleased to have Truvalu on board as a strategic partner to help us scale faster and create more value for our customers. Leading up to the investment process, Truvalu did things that other investors don’t typically do. She has built a financial model for us and facilitated a process where two technical experts worked with us to develop a strategic plan. Right now, we know what strategic steps to take. And that’s possible thanks to the investment Truvalu made. It’s great that Truvalu is running with us.’ – Adan Mohammed, founder of Ecodudu

Growth ambition
Truvalu operates in Colombia, Kenya, Uganda and Bangladesh. Truvalu has created an interesting investment portfolio of 15 companies representing an economic value of over €3.0 million. The ambition is to continue to grow with these companies and add at least 10 nice companies to the portfolio in the focus countries Kenya, Uganda, Colombia and Bangladesh. Building on the previous success, a new capital round of € 5.0 million has now been opened.

Impact
Local SMEs drive many economies, and they are uniquely positioned. They are rooted in local communities and, in many cases, they are also owned by members of that same community. They purchase their raw materials from local farmers and often employ workers from the community. The sales and profits generated benefit the local economy.

On average, each company Truvalu invests in, works with 1,000 local farmers and 100 jobs are created or maintained. Each euro invested converts into about €5.0 of locally created value. So by investing in 10 new businesses, the intended impact of this new round of capital is expected to mean the following: improved income for approximately 10,000 farmers, 1,000 jobs added and €25.0 million of locally created value.

Funding
During the previous capital round in the period 2021-2022, long-term investors were attracted to fulfill Truvalu’s growth ambition. In that round, a total of €2.4 million was raised: 50% by Truvalu itself and 50% by MissionInvest.

As there are still many opportunities in further expanding Truvalu’s portfolio, a new capital round of €5.0 million has been opened as of early 2023. MissionInvest is again eager to commit to Truvalu’s successful mission and aims to realize 50% of the required capital through its network. Thus, a total of €2.5 million. In terms of impact, MissionInvest will achieve the following with this amount: better income for 5,000 farmers, 500 more jobs and €12.5 million of locally created value!

Because quick exits are not possible in the type of projects Truvalu implements, these are long-term investments with a term of 7-9 years, also called patient capital. In addition to an impressive social impact, Truvalu Enterprises I pays a cumulative preferential dividend of 4% on an investment of €250,000 and of 4.5% cumulative preferential dividend on an investment of €500,000. Two types of tickets are available for this round:

• € 250,000 – 4% interest on an annual basis, as a cumpref dividend
• € 500,000 – 4.5% interest on an annual basis, as a cumpref dividend

We would like to get in touch with investors who wish promising fellow SME entrepreneurs in Kenya, Uganda, Colombia and Bangladesh a bright future! Not purely for themselves, but especially because of the enormous impact each invested euro has on the local economy. What could be better than making your money work where ‘social impact and a nice financial return’ go hand in hand? This project is therefore a wonderful example of mission-oriented investing!