We made the decision to invest in Agroforte based on the compelling value it brings to small and medium-sized protein rural producers through its 100% digital, user-friendly agfintech platform. Agroforte revolutionizes access to customized and streamlined credit lines for farmers, eliminating unnecessary bureaucracy. It is important to note that the product is tailored to address the needs of an underserved market consisting of livestock and milk production farmers.

One of the key factors that influenced our investment is the exceptional team behind Agroforte. Felipe D'Avila, Co-founder and CEO, former CEO of Juiceology, a California-based functional juice brand with national distribution in the USA and over 10 countries, brings valuable experience in strategic consulting and has worked on projects across Brazil and various countries in Latin America. Gustavo Andrade, the CTO and CPO, possesses 18 years of experience in the financial sector, specializing in loans, fundraising, pricing, product development, market intelligence, and technology solutions. Carlos Mascarenhas, the CFO and Co-founder, brings 27 years of experience in the financial market, with expertise in credit, guarantees, agrifinance products and sales, having worked at prominent banks such as Unibanco, Safra, and Itaú BBA. This exceptional team ensures that Agroforte is well-positioned to deliver impactful solutions to the agricultural sector.

The agricultural market in Brazil presents a significant opportunity for Agroforte. With a GDP contribution of 27.4%, totaling a staggering R$2.4 trillion, the agro sector is the fastest-growing industry in the country. However, more than 70% of small Brazilian producers seeking credit often face significant challenges in obtaining suitable financial solutions. Moreover, 81% of the credit is concentrated in the hands of the five largest banks, leaving a gap in accessible financing options for small and medium-sized farmers. Also, the team is tapping in an unserved market when it comes to protein, as most solutions are catered to seed farmers.

Agroforte's product offerings provide specifically to the needs of protein farmers. They provide credit lines for equipment purchases, investment in infrastructure, expansion of livestock and milk production, procurement of seeds, fertilizers, and pesticides, as well as the acquisition of agricultural inputs. The repayment terms are flexible, ranging from 6 to 24 months, and the funds are disbursed directly to the suppliers or deposited into the producers' accounts, ensuring a seamless and efficient process. Moreover, with a substantial number of farmers integrated into the platform, Agroforte will have the capability to establish a marketplace that connects suppliers and enables them to provide complementary services and products.

Agroforte's origination flow is facilitated through partnerships with agro-industries. These collaborations involve convening agreements where Agroforte offers financial products to rural producers integrated with the agro-industry. In return, the agro-industry refers producers to Agroforte for enhanced access to credit. As part of the agreement, the agro-industry retains loan installments during the production cycles of the farmers and transfers them to the designated payment account indicated by Agroforte.

In summary, our investment in Agroforte is driven by its ability to provide much-needed financial support to small and medium-sized farmers through its innovative digital platform. With an exceptional team, a sizable market opportunity, and a comprehensive product portfolio tailored to the specific needs of farmers, Agroforte is poised to drive positive transformation within the Brazilian agricultural sector.