1What type of organization is Truvalu?
Truvalu is a Dutch impact investment company that provides growth capital and co-entrepreneurship support to the companies that are working to develop agricultural value chains in emerging countries with a positive social impact.
2Where does Truvalu operate?
Truvalu has operations in 4 countries including Kenya, Uganda, Bangladesh, and Colombia. It started its operations in Bangladesh in 2016.
3How does Truvalu work?
Truvalu follows the “co-entrepreneurship” approach. It finances investments that are likely to boost the company's efficiency, production capacity, and assist it in reaching untapped markets.
Truvalu makes capital investment in machines, equipment, new technology, processing plants etc. and also provides partial working capital financing, if required. In return, Truvalu takes an equity stake in the company.
4What else does Truvalu offer?
Truvalu also offers a standard package for Business Development Services. These services include Legal and Financial Due Diligence, Management Consultancy, Market Research, Business Planning and Market Access.
According to the needs of the SME, Truvalu can offer additional BDS services.
5Does Truvalu offer loan/debt financing/grants?
In Bangladesh, it only offers equity investment for an expected period of 6-8 years.
6How much does Truvalu invest in a company?
Truvalu’s current ticket size is EUR 250,000. However, the investment size varies on a case to case basis. For larger investment needs, Truvalu can arrange co-investor(s) depending on the merit of the business.
7What are the basic criteria Truvalu looks for investment in a company?
Truvalu is interested in high growth businesses that are working to develop agricultural value chains. Truvalu prefers companies that have been operating for 2-3 years, profitable, generating BDT 10 million+ in revenues, and have a viable business model with scaling opportunities. Truvalu invests in companies that have at least 10 full-time employees and 100 smallholder farmers integrated in the value chain.
8Does Truvalu take a controlling position in the company?
No. Truvalu does not take a controlling position in the company. It takes equity ownership of up to 49% with a representation on the board of directors and expectation of exit within 6-8 years.
9What happens after 6-8 years of investment?
Truvalu’s objective is to increase the value of the company substantially during the holding period after which Truvalu exits from its investment by either selling its equity back to the existing shareholders/Company or to third party investors. However, Truvalu prefers companies with committed founders who are willing to buy back the shares during the exit. Depending on the performance and need of the companies, Truvalu also considers reinvesting.
10Does Truvalu invest in agro-based start-ups with no experience?
Truvalu does not invest in idea stage businesses. Truvalu has a preference for operational, profitable (or likely to be profitable) SMEs with considerable social impact. However, Truvalu considers innovative agri-focused startups with MVP (Minimum Viable Product), traction, and strong growth potential.
11Does Truvalu invest in NGOs?
No. Truvalu only works with profitable companies that are operational, have high growth potential, and are connected with smallholder farmers through the value chain. However, Truvalu partners with NGOs/DFIs/Accelerators/Incubators/FIs to develop the ecosystem in Bangladesh.
12What type of legal entity is eligible for receiving investment from Truvalu?
Truvalu can only invest in Private Limited Companies in Bangladesh. That means any other legal entity (sole proprietorship, partnership, NGO) must be converted to Limited Company prior to investment and share issuance to Truvalu. After the investment, the Company would have to follow the regulations according to the Companies Act, 1994 and/or any other applicable regulations.
13What are the compliance requirements from Truvalu after receiving investment?
Truvalu requires the investees to maintain globally accepted corporate governance practices. Investees have to prepare financial statements in accordance with the International Financial Reporting Standards (IFRS) and appoint well-reputed audit firms approved by Bangladesh Securities Exchange Commission (BSEC) and Bangladesh Bank. Additionally, investees have to strictly comply with the requirements of Bangladesh Investment Development Authority (BIDA), National Board of Revenue (NBR), Bangladesh Bank, Registrar of Joint Stock Companies (RJSC) and other relevant government bodies of Bangladesh. Truvalu supports the investees through guidance and advisory to become globally compliant.
14How does Truvalu measure social impact?
Truvalu’s primary impact goal is to sustainably improve the living standards of smallholder farmers. There’s a list of key metrics developed according to IRIS+ System to measure and monitor impact performance of the investees. Investees have to comply with additional reporting requirements for impact measurement.
15How to apply for investment?
Please email your pitch deck to the following address including your contact details and someone from Truvalu will reach out to you if all the requirements are met.
Email: info.bd@truvalu-group.com