Contents

A. Understand Causes of Rural Poverty

•4 Halves of Have-Nots•Farmers lack access to finance and markets•Value chains are weak•Needed solutions are businesses

B. Solve Poverty by Creating Livelihoods

•Mission: Turn crops into cash•Strategy 1: Solve finance for higher crop yields•Strategy 2: Invest in value chains to create markets•Strategy 3: Achieve scale

C. Shift Charity to Impact Investment

•Not enough aid money to end poverty•Underlying nonprofit foundation•Africa Farmers Collateral Fund•Africa Agriculture Equity Fund

SECTION A: Understand Causes of Rural Poverty

• Rural poverty is profound.

• Subsistence farmers are majority of poor on earth.

• While aid has helped with healthcare and education, rural poverty is often getting worse.

• There is not enough money in aid to end poverty.

Subsistence Farming & Food, Rough

Statistics for Most African Nations

Half of people are chronically malnourished

Half of year famine:

wet/dry cycle becomes

feast/famine

Half of food imported, esp. by value: local

markets are huge

Half of farmer’s

production never

consumed

4 Halves of the Have-Nots

4

Most of a farmer’s production from the wet season is lost: the lack of processing, preservation, and logistics businesses causes hunger and poverty. There is no model to invest in them. Aid competes with them.

UnderlyingProblems

Farmers Lack Access to Crop Input Finance

UnderlyingProblems

• With careful manual application, it costs $200-$1000 per acre for seeds, fertilizer and treatments

• There is not enough money in aid to lift farmers out of poverty. BIG LOANS are needed; (more than microfinance offers farmers.)

• Microfinance limits people to subsistence.

• What is a market? -List of buyers to negotiate terms (a business function)

• Distribution systems lacking so need market building (rather than ‘market linkages’)

• Access paradox: market is BIG but farmer is SMALL (too small to connect)

Farmers Lack Access to Markets

UnderlyingProblems

Farmers produce little for sale• So no commercial loans• So no reliable market causing much

waste

Food businesses lack crop inputs• So limited growth and investment• So they import needed volume

competing with nearby farmers

UnderlyingProblemsDysfunction in the

Food Value Chain

Cheetah must work on both halves because the problems are linked in a

vicious cycle

UnderlyingProblems

Markets Solutions are Needed Too

that damage investments

Aid organizationsCompanies

Subsistence farmers

Doing Big Business(big scale)

with the Dirt PoorSolution

Summary

Business is the Bridge

STRATEGY – Farmer Partnership:New ways to finance farmersNew businesses for small farmersMake farmers investable

STRATEGY – Solve Industry Gaps: New businesses in value chain closely serving farmersSolution

Summary

Building Bridges

SolutionSummary

Is a last mile problem/opportunity: connecting backbone industry to small suppliers/users at the end of the line.

SECTION B: Solve Poverty by Creating Livelihoods

• Mission Summary• Strategy 1: Increase crop

yields with new kind of finance to commercialize farmers.

• Strategy 2: Make investments in value-chain to create markets and serve farmer needs.

• Strategy 3: Achieve scale.

Mission Summary

CropsInvestments

(Markets and Finance)Cash

Agriculture & Food

Markets

Finance

Focus on markets and finance

because they are lacking in

traditional development

approaches

Strategy 1: Commercialize Farmers

Beyond subsistence:Maize fields planted on the same day. (Cheetah supported farmer on left.)

It’s not giving gifts, it’s growing gifts

4 Steps to Leave Subsistence Poverty

1. Organizing

in Registered

Groups

2. Technical Farming

(Agronomy and Inputs)

3. Large

Commercial Loans

4. Guaranteed Markets

Farmer Commercialization

Prefer to partner with NGOs for training, organizing and data

collection

Pearl’s focus and income

Partner w/ local banks

(metafinance)

Africa Farmers

Collateral Fund

Healthy Commercial Loan – 3 Legs

Business (Farmer’s

Group)

Economic Benefit

(Markets)

Lending Bank

Receive no cash, only inputs, pay with crops, loans guaranteed between members

Guarantee markets and

first 10% of loan

Kept in USD accounts

Spreading the risk unlocks the deadlock

Investment Solution

From MIT group that made the first major review of microfinance:

“… the structure of [microfinance’s] success in lending to the poor is such that we cannot count on it to be a stepping-stone for larger businesses to be created and financed. Finding ways to finance medium scale enterprise is the next big challenge for finance in developing countries.”

Microfinance

Small loans averaging $300 filling

microfinance space

Less successful and smaller in rural areas

and for agriculture

Best suited to micro enterprises with no

usage control

Credit often based upon peer pressure or

average risk factors

Cheetah’s Metafinance Innovation

Loans (and equity) $5000-$500,000 filling “Missing Middle” gap

Designed for communities or

midsized businesses

Requires strict structural control,

which is built in

Credit based on production capability

Strategy 2: Invest in Value Chain Businesses

Solve value chain problems holding farmers back:Example: Solar food dryer preserves food, is affordable to farmers, opens new markets and recovers harvest losses.

It’s not giving gifts, it’s growing gifts

Target Investment Criteria

ProfitableHigh impact –

change livelihoods significantly

Ag or ag value chain

Replicable – can be replayed and

cross cultures

Scalable and able to grow quickly

meeting the needs of many

High need, fills a critical gap, ‘last mile’ to farmers

High leverage – few employees or low

investment changes many lives

Cluster – fit with other investments to multiply effect

Red: priority preference

Green: important preference

Cheetah Innovation:

• Franchise approach replays business successes• Pilot concepts tested before investments• Shared back office resources between investments

Africa Agriculture Equity Fund

Inve

stab

le

Micro Venture Capital

Inve

stm

ent E

xam

ples

Pearl Foods – opening markets and finance to farmers

Reservoir – ending the feast/famine cycle, now with

solar food dryers

Kabisa – creating rural transport, especially for

transporting crops

Sunborn – dried food marketing

Prot

otyp

ed

Initial Operations

OperatingO

pera

ting

Strategy 3: Achieve Scale

The problem is massive – 2 billion people. The solution must be scalable:It must employ strategies that are replicable and can be widely adopted.

It’s not giving gifts, it’s growing gifts

We have a moral obligation to scale

it. That is different…

Because there is a

solution that works…

Our Operating ThesisPoverty is intrinsically offensive and a major contributor to many of the most serious problems on earth (war, disease, climate change).

Goi

ng to

Sca

le

Directly impact a 1 million+ people and indirectly far more

Operate in 2-3 regions/continents,

more than 12 nations

Open more than 20 locations(a common

test of franchising skills)

Found more than 10 new companies

Cheetah Five Year Objectives

Investment Steps

Ideate •Identify opportunities•Select

Pilot •Prototype•Validation requirements

Activate •Demonstrate business model•Verify validation requirements met

Propagate •Invest•Grow in origination and new locations

Board approval required to advance to each new step.

Avoiding the Gartner Hype Cycle

By piloting companies, Cheetah is able to provide much more realistic expectations of performance in advance of significant investment.

Supporting pilots is part of the reason the investor fees are front loaded.

SECTION C: Shift Charity to Impact Investment

• Leverage current farmer assets – first let them succeed where they are.

• Increase crop yields with new kind of finance.

• Make investments in value-chain to create markets and serve farmer needs.

• Go to scale.

The solution to poverty isn’t charity; it is investment: what’s needed is wealth creation not redistribution.

It must attract donors AND investors;

it’s the only way to fund the scale of the problem.

Cheetah offers a fundamentally new way to capitalize wealth creation for smallholder farmers.

Gives impact investors a financial and social return: double and even triple bottom lines.

Financing a revolution in rural economic development

"...investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return.

Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending upon the circumstances."

- Global Impact Investing Network

Impact Investing:Aligning Investments with Values

Three Pillars: Success to Significance

Philanthropy

Impact focus

Kick-start businesses

Business

Profits for sustainability

Accountability

Capital Markets

Debt and Equity

Needed for Scale

Training on the use of solar food dryers

often attracts crowds of women in villages.

65% of world’s uncultivated arable

land. Uses less than 2% of renewable water.

Moving from an extractive economy

to a value added economy

GDP grown at a 5% rate over

the last decade

High birth rates with falling

infant mortality

Growing middle class food consumption

increasing demand – already a net importer

Demand for food from Middle East, India and China

African Agriculture Holds Opportunity

Farmers lack access to crop input & equipment finance

Farmers lack access to markets & value chain

Africa Farmers Collateral Fund

Africa Agriculture Equity Fund

Financing Solutions with Accredited Investors

Africa Farmers

Collateral Fund I

Economic and Social Returns

Metafinance

Africa Agricultural

Equity Fund I

Economic and Social Returns

Micro Venture Capital

Risk MitigationAfrica Farmers Collateral Fund I Africa Agriculture Equity Fund I

On-the-ground presence, active management in portfolio companiesCheetah keeps control of accounting, reducing likelihood of corruption

Shared back office services and location reduces startup costsPreferred share position for investors in many cases

Local village leadership for most activities bridges cultural gapsLoans made by local commercial banks that have rights of loan enforcement

Usually have controlling interest in companies

Money stays in US dollars to avoid currency exchange

Prototype many company activities before receiving investment

Farmers cross-guarantee loans between members of groups

Partnering when possible reduces investment required

Farmers receive crop inputs or equipment rather than cash; loan is paid by delivering crops

Keeping companies small and scale achieved through franchising reduces risks of concentrated capital

Diverse crops and climates Franchising approach creates a higher dedication to standardized procedures, thus more predictable outcomes

Africa Farmers Collateral Fund I

•Farmers turn in crops, they are sold, loan is paid•If crop does poorly, crops produced are sold, farmers achieve no profit, loan is paid•If farmers do not pay, other farmers cover costs, loan is paid•If group fails, bank enforces loan and farmers make payments over time•Supplier (usually investee of AAEF Equity Fund) of crop inputs or equipment covers a minimum of 10% of first loan losses, including profits from other groups, loan is paid•Fund investors are in tiered risks A, B, C so losses covered in lower tiers

Africa Agriculture Equity Fund I

•Companies are sold to outside investor•Fund has preferred shares, equity is converted to debt and repaid (this is built into the fund model from outset – for more information see SEAF model)•Future fund buys out current investorsInvestor

Exit Strategies

Equity Fund Debt Exit Strategy

Created by SEAF (30 yr. proven experience, impact investment model)

Local Investors, Employees

Common Shares

Cheetah investment –

preferred shares

1. Cheetah raises needed investment and has board control

Common Shares

3. Loans are repaid, shares divided pro rata by others

Common Shares Cheetah shares

4. Company is revalued by pre-agreed formula

Local investors equity – common shares. However by contract Cheetah controls accounting function to guarantee

transparency. Sale of shares is restricted by agreement.

Cheetah Preferred (15% minimum), dividing repaid Preferred Shares with Common, (optionally, Cheetah

may be repaid while retaining equity)

6. Equity and control revert to local shareholders

Fund investment –preferred shares A & B

Common SharesEquity to

Debt Round 1

Cheetah shares

2. Preferred shares divided into loan and equity

Preferred shares

Loans repaid Cheetah sharesPreferred

shares

Preferred shares

Common shares Cheetah equity subordinate to fund debt

5. Remaining preferred shares are converted to debt and repaid (24-36 months)Fund equity – preferred

shares, may be limited by coupon value

7. All shareholders enjoy profit distributions pro rata with ownership

Exit Strategy: the Process for Fund Liquidity

Terms Africa Farmers Collateral Fund I LLC Africa Agriculture Equity Fund I LP

Manager or General Partner

Cheetah Development, Inc., a 501(c)(3)

Size Up to $3.5 million by 31 Dec 2015 Up to $20 million by 31 Dec 2015

Target Return 2% 12% – 15%

Term 18 months, one 6-month extension. Multiple series with rollovers.

7 years, 2 one year extensions.

Target investors Accredited investors, foundations, family offices and individuals. Impact investments interested in Africa, agriculture, developing world poverty reduction, and/or women’s economic empowerment.

Commitment Minimum 10 units or $100,000.

Fees & Expenses 1.5% per annum of total Commitments. Fund pays its operating expenses.

3% per annum of total commitments, partially paid up front for incubation and R&D. Fund pays its operating expenses.

Legal Counsel Dorsey & Whitney LLP

Audit Firm Recognized audit firm(s) to be selected

Summary of General Fund Terms

Staff•Ray Menard, founder & CEO. Start-ups and business development.•Paul Larsen, VP. African agri-business and financing.•Brad Brown, VP. Impact investment and social enterprise.

Fund Advisory Board

•Investors •Chris Maclellan, Trustee, The Maclellan Foundation•Mark Mortenson, Trustee, Mortenson Foundation

Experienced Management

•Unique direct investment opportunity for the “high touch” impact investment client

Set your firm apart

•Financial and social returns, both highly measurable

Align values of your clients

•On-the-ground / in-the-market / culturally attuned management

Unconventional for success

•Not an NGO solution, a business solutionOn target

Special Offering for Values Based Investment Clients of Registered Investment Firm Advisors

Sum

mar

y of

Fun

ds

Proof of Concept• Past 5 Years, Complete

Proof of Scale• 5 Years, Starting Now• Result: Everyone Believes

A Movement• 1 Billion Lives Changed

Starting Conce

pts

3 year plan to: Use business to end poverty by linking opportunity to the poor

Create an investment model that can be institutionalized and replicated

Connect philanthropy, business and capital in a new intersection of opportunity Pr

oof of Co

nce

pt R

esults

Achieved all starting concepts (6 years) plus:Registered a 501(c)(3) investor

Created two innovative models of finance (Metafinance and Micro Venture Capital)

Set up first ever VC. in Tanzania

Focused on food and agriculture

Launched 2 new companies, 4 companies in the pilot stage

Patented a ½ ton cargo bike, developed a new solar food dryer, more products coming

Created new brands, “Sunborn” for smallholder foods of quality

Have 30 employees operating in around 50 villages directly impacting over 10,000, indirectly almost 250,000

Substantial livelihood impact over 10x demonstrated

Began work in 2 more nations

Set up 2 funds and raised almost $2 million immediately

Plumbed a deal pipeline approaching $10 million

Joined many partners and grants

Recognized as a thought leader

Ne

xt – Go

to Sc

ale

5 year plan to: Directly impact a 1 million+ people and indirectly far more

Operate in 2-3 regions or continents, more than 12 nations

Open more than 20 locations (a common test of franchising skills)

Found more than 10 new companies

History: Plan and Results

Typically, aid gives to the poor

Cheetah’s focus

is to buy from

the poor

Why not buy the fish? -It ends all dependency.

Its better to teach fishing than give fish. -It ends food dependency.

Securities DisclaimerThis document is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. Any such offer or solicitation will be made only by means of the Company's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly this document does not constitute investment advice or counsel or solicitation for investment in any security. This document does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. The Company expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained herein, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.

Thank you!

www.CheetahDevelopment.org