FAQ

What exactly is this investment opportunity?

At AgUnity, we are currently undertaking a SAFE note investment discount round so we have the capital to scale our platform and grow quickly. It is a Simple Agreement for Future Equity (SAFE) that was developed as an alternative to convertible notes. A key aspect of a SAFE is that it does not create or reflect any debt between the parties. In practice, a SAFE is an agreement that can be used between a company and an investor. The investor invests money in the company using a SAFE. In exchange for the money, the investor receives the right to purchase stock in a future equity round (when one occurs) subject to certain parameters set out in the SAFE. The key features include:

• no maturity date
• no interest rates
• automatic conversion on any priced share issue
• a valuation cap.

What is AgUnity?

Today in developing nations, 500 million smallholder farmers do not have access to the simple services that would help them to improve their lives such as having access to digital identity, opening a bank account and securely transacting theirs produces in a trustworthy environment. AgUnity is a digital platform that creates a secure and auditable transaction framework for the 500 million farmers (the AgUnity demand-side) in developing countries and the organisations that interact with them (the AgUnity supply-side). It’s a dedicated smartphone device and operating system, which offers farmers access to the services they need and a platform for organisations to supply those services. For example, in a partnership with a bank or insurance company, AgUnity integrates or creates the partner app into the AgUnity App, and with the partner, deploys AgUnity smartphones to targeted farmers at scale.
AgUnity is banking the unbanked. Using the AgUnity smartphone, farmers benefit from functionalities that are specifically relevant to them and their rural communities including:
An integrated User Experience (UX) that is intuitive and easy for them to use. Features such as the share equipment feature allowing them to optimize the use of equipment in their cooperatives with fellow farmers and dramatically improve their farming process and yield. Access to financial inclusion through a digital wallet, allowing them to plan their finances and invest in what matters the most to them. A secure and transparent transaction records system using distributed ledger technology (DLT), allowing for the secure and transparent recording of all transactions, and enabling trust. Organisations use AgUnity to leverage: A new cost-effective distribution channel, with the potential to unlock up to 2-billion new users in remote and rural communities. A solution that is designed to tackle both the technical and educational challenges of remote and rural users, including an ability to transact without connectivity (i.e. ‘offline’), remote user support, and low-literacy UX. Gain insightful market data allowing them to adjust their product and program rollout for better success.

Why does AgUnity need capital?

AgUnity has had fantastic traction to date (see below) as well as a revenue stream over $1 Million AUD in 2019. We’re raising capital because there are so many opportunities on our doorstep which, if seized, will result in great growth for the company. The capital raised will be used to:

• Continue to develop our v3 Application, Axsari OS, management dashboard and third-party integrations; which will enable the fast onboarding of many more partners into our platform.
• Support business development activities to secure new partners in target markets.
• Support increased operational activity due to expansion of current partner base and farmers.
• Pursue further IP protection for current assets.
• Undertake Research & Development activities including Internet of Things (IoT) testing and tracking in pilot locations.

How many partners do you have and how will you grow your farmer users over time?

With each new partner we integrate into AgUnity’s ecosystem, we have access to more farmers and an ability to rapidly scale our user base. We currently have six fee-paying partners (supply-side) such as Agriterra, Expo Live 2020, CTA and the World Food Program, who have an estimated total user base of over three million farmers (demand-side). The majority of initial partner projects include several hundred users during the piloting phase, however some opportunities include the immediate goal of reaching up to 400,000 farmers and beneficiaries per project.

Who is your current competition, how do you differentiate from them?

We have no known direct competitors. However, there are a number of companies using technology and mobile application to create solutions in developing nations, including CommCare, SimPrints and Agri-Wallet. Our Unique Selling Point (USP) is that not only does AgUnity provide immediately relevant features for smallholder farmers, our technology is designed exclusively to operate effectively in remote and rural areas, and for first-time por inexperienced technology users.

What stage/phase is the company at and what has it achieved so far?

We have run several supply-side client projects in the past and are currently running important partner projects:

• Partnered with Expo Live 2020 and a local organisation (non-disclosed) in Papua New Guinea, we are supplying the AgUnity smartphone device to 100 farmers and 20 program officers before rollout, with potential impact on approx. 60,000 smallholder farmers.
• Partner with CTA, Bioversity International and CDCTTL (The Cocoa Development Company of Trinidad & Tobago Limited) in Trinidad and Tobago working with 100 supply chain actors including farmers, processors, logistics companies and buyers before rollout, with potential impact on approx. 2,000 smallholder farmers.
• Partner with CTA and Bioversity International and the produce monitoring board (Directorate Of Science, Technology, and Innovation) in Sierra Leone working with 100 supply chain actors including farmers, processors, logistics companies and buyers before rollout, with potential impact on approx. 65,000 smallholder farmers.
• Partnered with Agriterra and CTA a Cooperative Union in Ethiopia with a potential impact on approx. 170,000 smallholder farmers in the Tsehay union.
• Partnered with the World Food Program (WFP) country office of Ethiopia and a local organisation (non-disclosed) in the Jimma region of Ethiopia where 420,000 smallholder coffee farmers work.

Do you have any team members with a long track record in the mobile technology industry?

Yes, the AgUnity leadership team has a long history both in Financial technology, Mobile and IoT industry, and Impact program operations.

• David Davies, the founder, has exited previous mobile software companies, and along with other AgUnity managers, has spent decades working in technology.
• Petra Schneider has twenty plus years of experience in sustainable development program leadership and producing high-impact behavioral change solutions.
• Keith Nielson has twenty plus years in business-critical technology (mostly in Tier-1 Investment Banking IT infrastructure) with a more recent focus on startup-/scaleup companies to innovatively solve perennial life-affecting problems.

In which regions are you working now?

We have significant supply-side demand all around the world. Based on our current and projected partner integration roadmap for the next 5 years, we have estimated our direct demand-side Total Addressable Market (TAM) at 28.5 Million farmers, But we know that our real demand-side market is the worldwide 500 million smallholder farmers that to date, do not have the ability to transact and trade in a safe and traceable environment. For now, we have decided to focus on high potential regions such as Ethiopia, Papua New Guinea, and Indonesia and once we have built a strong presence we will expand to new horizons.

What factors contribute to AgUnity’s potential success?

AgUnity is revolutionising the way farmers trade their commodities in developing nations. With a unique and scalable platform that connects the farmers with the services suppliers around them. Here are the reasons why we are confident that we will be successful: (1) Large and powerful demand-side target market

• 500 million farmers and fisherfolk around the world lack safe and auditable transaction tools due to poor access to Digital identity and Financial inclusion.
• Digital identity is an identification that is verified and authenticated to a high degree of assurance over digital channels.
• Financial inclusion means having access to and using one or more formal financial services (Credit, Savings, Insurance, Payments)
• It is one of the major reasons why so many farmers are still living in poverty today. AgUnity will be used by millions of farmers and their communities across the globe.
• Our supply-side is engaged and ready to act. Studies show that the developing nation’s economic inclusion actors struggle to reach the poor and remote communities due to systemic problems and expensive rollout cost. AgUnity provides a new cost-effective distribution channel as well as a powerful communication and supports medium into the remote communities.
• As a scalable platform and super-app, AgUnity is extremely sticky, and the more people use AgUnity, the stickier it becomes. The more features we add to AgUnity the more relevant it is for farmers and remote communities to use it. This new super-app model has already been proven with many hyper-growth companies such as Wechat, or Grab.

What is your business plan?

Put simply, our business goes through several stages of evolution over time. First, we develop and create supply-side client partnerships with service providers, banks, insurance, commodity buyers and NGOs and deploy the AgUnity smartphone to a small number of farmers or fisherfolk (demand-side) in various, high-potential locations. • Scoping: We study implementation feasibility and initiate a partnership. We identify the partner’s needs and major pain points. • Development: We translate requirements into application design. Both partner and AgUnity test and ensure successful integration of the partner’s solution in the AgUnity platform. • Roll out: The AgUnity smartphone and developed solutions are rolled out to the target farmers. • Scale: The client solution scales as the network takes on new services and new farmer users. Finally, we open the e-commerce marketplace inside AgUnity and allow farmers to purchase goods and services. Our business plan follows the standard platform/portal business plan. Please see our IM for further information on our business plan.

How do you maintain a positive cash flow?

AgUnity providers technology consulting services that help fund our current activities while we grow our supply-side and demand-side. This includes, for example, an engineering project working with a $50B+ Australian retail chain. We have assets on our balance sheet for over half a million dollars, as well as estimated revenue for 2019 for $1.15 million AUD.

Who are your customers?

AgUnity immediate customers or partners representing our supply-side is made of NGOs, service providers, mobile banking, micro-finance institutions, and insurance company and economic inclusion actors in developing nations.
For the NGOs, numerous and successful actions are being taken, but obstacles persist as SDG focus programs and NGOs experience difficulties using technology in implementing projects and assessing the impact of their programs in rural areas. They often struggle with communication between their program leaders and the farmers or remote poor communities and oftentimes face systemic corruption and money loss on their projects. For the commodity buyer and Like many organizations in developing countries, challenges exist. Commodity buyers oftentimes lack data management to process products, origins, pricing, payments, and delivery schedules. They also very often witness unstable communication and lack of digital identity of their farmer’s members and suppliers. Traders, while offering price-risk management solutions for both buyers and sellers, often face an unstable and untrusted record-keeping system. For the services providers, Despite the effervescence around mobile technology and FinTech breakthrough, banking, and insurance company, as well as micro-finance institution, struggle to maintain their economic growth rate in developing countries, especially in rural areas. “Growth among emerging market and developing economies is projected to fall to a four-year low of 4%”-world bank; 2019. Many obstacles have been identified but even with significant effort and progress, much work remains to be done. Financial literacy and capability are the main barrier to financial inclusion. Financial services institutions oftentimes don’t provide learning and training programs in order to raise awareness around their financial solutions and current money solutions are often not adapted and not relevant enough for those rural community real needs. Valid identification documents are essential to access financial services. In remote communities, data and digital identity are generally lacking and currently no streamline process exists to ease the heaviness of the procedure for obtaining valid identification documents in developing countries. As much as bank and insurance understand the economic potential of those untouched market, accessing farmers, fisherfolks and remote communities is difficult and expensive. Poor and remote areas are difficult to reach and involved substantial travel cost and time, on top of that, the nature of this new market involved important support and follow up cost. By offering remote communities with relevant smartphone technology as part of their strategy, bank, insurance and microfinance, NGOs and Commodity buyers will leverage a new cost-effective distribution channel, learn insightful market data allowing them to adjust their product and program rollout campaign for better success. Also, they get access to a powerful communication and support medium into the remote communities.

What does it take to have AgUnity setup for a new partner? What is the process?

We operate alongside our 4 core phases, by understanding the partner-specific requirement and needs.

• Scoping: Based on the AgUnity road map, our program leaders study implementation feasibility and initiate partnerships with local institutions. They identity project needs & major pain points.
• Development: The AgUnity technology & development teams translate requirements into application design. Communication and testing by both partners and AgUnity ensure successful integration of the partner’s solutions in the AgUnity ecosystem.
• Roll out: The AgUnity smartphones and developed solution are rolled out to the farmers. Together with the partner, the AgUnity program implementation team start monitoring and measuring the impact and benefits of the new platform following defined KPIs.
• Scale: Project scales as network takes on new services and new farmers.

Isn’t it risky to give handsets to farmers?

Farmers take good care of their AgUnity smartphones, as these devices are their wallet and connection to their farming co-operative and other service providers, identity and financial services.

Why do you need to give phones to farmers?

It is cheaper and more efficient to provide plug-and-play smartphones than supporting first-time users to set up and maintain an app on their smartphones. NGOs, banks and other institutions that have worked to provide digital services to the last mile generally encounter this barrier. Phones are either paid for in full or subsidised by a service provider, or co-operatives sell to the farmers on a payment plan.

How long does a typical relationship with a farmer individual last?

AgUnity demand-side are composed of farmers, fisherfolk and their communities, however, our client, the supply-side is made of the organizations looking to expand their reach and connect and engage with those very farmers.

How do I keep up with the progress of the company?

As an investor, we will proactively keep you up to date as our projects progress, you can opt in our newsletter to receive information ahead of everyone.

What do I do now that I’ve made an investment?

Congratulations on your ethical investment. Our Investor Relations team are available to assist and update you on the key movements of AgUnity. Engage with us on social media and feel free to spread the word, we are excited to have you with us.

Who can invest?

Available to investors worldwide. To discuss your particular requirements, contact our Investor Relations team on: investment@agunity.com

What sort of return can be expected in the investment?

Receiving a return can occur in a number of ways.

You will receive a return on your investment if AgUnity pays a dividend in the future. Shareholders will also receive a return if they sell their shares at a higher price than their purchase price. There are a number of ways shareholders may be able to sell their shares:

1. Firstly, as shares in an unlisted company, you can sell your shares if you find a buyer, however there is no official secondary market.
2. Secondly, if the company conducts an IPO, you will be able to sell your shares on a secondary market, such as the ASX.
3. Thirdly, if AgUnity is acquired, there may be an option to sell your shares.

How do I invest?

The first step is to contact us via investment@agunity.com to receive a copy of the SAFE note Investor Memorandum. Our Investor Relations team will then address any questions you have and process the SAFE note investment as per the terms and conditions of the memorandum.

What are the risks involved in investing?

Buying shares in any company puts you at risk of potentially losing your investment if the company fails or underperforms. However, if a company performs well its shares might increase in value and investors may be able to sell their shares for a profit, or receive dividends. Investing in unlisted companies can generate higher returns to compensate investors for the additional risk associated with being an early investor.
Therefore, please only invest what you can afford to lose.