The Market
Five Structural Advantages. One Country.
Paraguay is the only place where renewable energy, low taxes, EU treaties, year-round climate, and a massive supply gap converge.
99.5%
Renewable Energy
Hydroelectric. $0.04-0.06/kWh — 70-80% cheaper than Europe. Zero heating costs.
10%
Tax Advantage
Flat corporate tax vs 20-30% in EU. Law 60/90 additional incentives for investors.
8
EU Treaties
BITs with Germany, Switzerland, France, Netherlands, Spain, UK, Italy, Belgium.
365
Days / Year
Subtropical climate = no heating needed. Year-round production. No seasonal gaps.
172K
Tons Imported
Paraguay imports fresh produce annually. Local demand exceeds supply — structural gap.
The 48-Hour Market
Within 48 hours of harvest, HidroBio reaches the most important consumption hubs in South America: São Paulo, Buenos Aires, Montevideo, Asunción, and Foz do Iguaçú (Brazil border). Cherry tomatoes exported to Brazil at 2-3x domestic premium. The domestic Paraguayan market alone absorbs up to 20 ha of production.
Cost Advantage vs. Europe
| Factor | Paraguay | Europe | Savings |
|---|
| Electricity | $0.04-0.06/kWh | $0.15-0.25/kWh | 70-80% |
| Labor | $1.45/hr min wage | $12-15/hr | 88-90% |
| Corporate Tax | 10% flat | 20-30% | 50-67% |
| Heating | None needed | 60-80% of energy | 100% |
Macroeconomic Stability
| Indicator | Value |
|---|
| Credit Rating | Ba1 / BB+ (one notch below investment grade) |
| GDP Growth (5yr avg) | 4.0-4.5% |
| Public Debt | Below 25% of GDP |
| Inflation | ~4% (stable) |
| FDI Trend | USD 500M+ annually |
Government Recognition
HidroBio is used by Paraguayan government representatives as a flagship example of agricultural innovation and successful foreign investment. Invited as the private-sector reference case in government trade missions with European delegations.
The Offering
What You Get for USD 150,000
One unit buys you 1/20th of a 2-hectare commercial greenhouse. You receive quarterly cash for 15 years.
💰
~$6,100 / Quarter
Average quarterly cash payment to your bank account — EUR or USD, your choice. First payment Q1 2027. Total: $368K over 15 years.
📈
No J-Curve
No 2-4 year wait. Cash yield starts at 13.7% in Year 1 and grows to 19.4% by Year 15 through inflation indexation.
🔒
Asset-Backed Security
Your investment is secured by a pledge on ~USD 1.2M of physical greenhouse infrastructure inside a ring-fenced SPV.
✅
8 Years Proven
This is not a startup. HidroBio has operated since 2018 with zero crop failures. 50+ B2B customers. AHK Award 2025.
In Plain Language: You invest $150K. You get back $368K in cash over 15 years.
Every dollar of the 2.46x MOIC lands in your bank account as quarterly payments. No exit event, no paper returns, no revaluation games. Your capital is fully recovered by Year 7. Even if revenue drops 30%, you still get your money back.
Key Metrics
Investment at a Glance
$3M
Total Raise
20 units x $150,000
8%
Preferred Return
Simple cumulative, 100% to LP
70/30
Profit Split
LP / GP above preferred
Q1 2027
First Distribution
Quarterly, EUR or USD
Per Ticket: 1 Unit = USD 150,000 (~EUR 136,000)
$368K
Total Cash Received
$6,138
Avg Quarterly Payment
| Parameter | Value |
|---|
| Legal Structure | Profit Participation Rights (Genussrechte) via ring-fenced SPV |
| Asset Security | Pledge on ~USD 1.2M greenhouse infrastructure |
| Underlying Asset | 2 hectares high-tech hydroponic greenhouse |
| Investment Horizon | 15 years |
| Distribution Policy | 100% cash — quarterly, all 15 years |
| Lead Founding Partner | 4+ units — advisory board seat + Series II priority allocation |
| Operating Reserve | 5% of NOI retained in SPV |
Use of Proceeds — USD 3,000,000
52% to hard assets, 13% to working capital, 10% to revenue generation, 20% to team, 5% to legal and expansion.
| Category | Amount | % | Description |
|---|
| Greenhouse Infrastructure | $1,000,000 | 33.3% | 2 ha greenhouses, hydroponic systems, climate control |
| Land Development | $400,000 | 13.3% | Site preparation, foundations, irrigation at 100 ha AgroPark |
| Working Capital | $300,000 | 10.0% | 12 months operating inputs |
| Technology & Automation | $150,000 | 5.0% | AI-driven seed-to-table, precision agriculture |
| Sales & Export Development | $200,000 | 6.7% | Sales team, cold chain, logistics, export channels |
| Brand & Market Development | $100,000 | 3.3% | Brand positioning, investor relations, ESG comms |
| Leadership Team | $400,000 | 13.3% | 6 executives across Paraguay and Switzerland |
| Farm & Infrastructure Teams | $200,000 | 6.7% | Construction, farm operations, technical staff |
| AgroPark Expansion Reserve | $100,000 | 3.3% | Trigger capital for doubling mechanism |
| Contingency | $100,000 | 3.3% | Construction buffer, FX hedging, insurance |
| Legal, SPV, Audit | $50,000 | 1.7% | Fund formation, annual audit, compliance |
| Total | $3,000,000 | 100% | |
Investor Protection
6 Layers of Asset-Backed Security
Your capital sits inside a legally separate SPV with a pledge on physical greenhouse assets, LP-majority governance, and contractual step-in rights.
Structural Protection
1
Physical Collateral
Pledge on ~$1.2M greenhouse structure, Priva systems, hydroponic equipment
2
Ring-Fenced SPV
Legally separate from HidroBio. Creditors cannot reach SPV assets
3
Cumulative Preferred
8% simple preferred — LP gets 100% until met. GP earns nothing until LP is whole
4
LP-Majority Board
2 LP seats, 1 GP seat, 1 independent. Veto on asset sales, new debt, distribution changes
5
Step-In Rights
SPV can replace operator or take over if HidroBio defaults on management obligations
6
Dual Signature + Annual Audit
Two-signatory bank controls. Independent annual audit shared within 90 days
Two-Tier Waterfall
Standard European structure. Simplest, most common for agricultural and real-asset placements.
Tier 1 — Preferred
$3.6M
100% to LP
Tier 2 — LP Share
$3.77M
70% of excess
LP receives 82% of all distributions ($7.37M of $8.98M). GP earns 18% — only after LP preferred is fully covered each year.
Risk Disclosure
Every investment carries risk. We present each risk honestly, describe what we do about it, and acknowledge what remains. Investors should underwrite using the Prudent Case (-10%) or Conservative Case (-20%).
Liquidity Risk High
The Risk
Partnership interests are not publicly traded. This is a 15-year commitment. Investors may be unable to sell their interests when desired, or may receive less than fair value on secondary transfer.
Mitigation
Secondary transfer rights from Year 5. Right of first refusal for existing LPs and GP. Structured quarterly distributions provide ongoing liquidity — 71.8% of capital returned by Year 5. GP committed to facilitate secondary transactions where possible.
Residual: Investors should only commit capital not needed for liquidity purposes and be prepared to hold for the full 15-year term.
Currency & Devaluation Risk Medium
The Risk
The Paraguayan Guarani is an emerging market currency subject to depreciation against EUR and USD. Historical annual movements: -8% to +5% against USD. Significant devaluation would reduce USD/EUR-equivalent distributions.
Mitigation
Revenue contracts with major retailers are USD-denominated or USD-linked. Operating costs (labor, utilities) are in Guarani, creating a natural hedge. Export revenue to neighboring countries (Brazil, Argentina) in hard-currency or USD-linked contracts provides additional diversification beyond domestic sales. Paraguay maintains credit rating Ba1/BB+, USD 10B forex reserves, and public debt below 25% of GDP. Distributions paid in EUR or USD at investor choice.
Residual: Significant depreciation remains possible, particularly in scenarios of regional contagion (Argentina/Brazil crisis) or global EM selloffs. Investors with EUR/CHF base currency should consider hedging strategies.
Market & Price Risk Medium
The Risk
Produce prices are inherently volatile. Local market prices have varied ±40% from seasonal averages historically. New market entrants could increase competitive pressure.
Mitigation
4-crop diversification across tomato varieties and peppers. 5 sales channels (supermarkets, HoReCa, wholesale, direct, export). Long-term supply contracts with major chains. AI-driven pricing intelligence monitoring 13 supermarkets daily. Counter-seasonal production premiums. 50+ B2B customers with no single customer exceeding 20% of revenue.
Residual: Even contracted volumes may face renegotiation pressure. Well-capitalized competitors could enter the market. Sensitivity: a 20% revenue decline still yields 5.6% LP IRR.
Country & Regulatory Risk Low-Med
The Risk
Changes to Paraguayan tax law, agricultural regulations, foreign investment rules, or property rights could affect returns. Political instability or regional contagion from Argentina/Brazil could disrupt operations.
Mitigation
Paraguay: 30+ year stable investment policy track record. Law 60/90 framework since 1990. 8 Bilateral Investment Treaties with EU nations providing legal protection. Investment grade sovereign rating. Cross-party consensus on economic fundamentals. Agricultural sector is a core national interest. SPV structured through locally incorporated entity with independent legal counsel.
Residual: No legal structure fully protects against sovereign action. Emerging market investments carry inherent regulatory uncertainty. Investors should monitor the political environment.
Climate & Production Risk Low-Med
The Risk
Extreme weather (hailstorms, flooding, heat waves) could damage infrastructure. Actual yields may fall below projections due to disease, pest infestation, equipment failure, or human error.
Mitigation
Controlled environment agriculture significantly reduces weather risk. Greenhouse structures rated for 120 km/h wind. Redundant climate control systems. 8 years of operational data with zero crop failures. Integrated Pest Management protocols. Comprehensive property + business interruption insurance. Elevated site to minimize flood risk. Backup power systems.
Residual: Agricultural production involves biological processes that cannot be perfectly controlled. Insurance provides financial protection but cannot prevent operational disruption during repair periods.
Operational & Key Person Risk Low
The Risk
The investment depends on the management team’s continued performance. Construction may experience delays or cost overruns. Technology system failures could disrupt production.
Mitigation
6 executives across 2 countries — no single point of failure. All hold significant equity stakes (aligned incentives). Documented operational procedures. SPV step-in rights. Fixed-price construction contracts. Proven technology from established European suppliers (Priva, Hydroponic Systems) with redundancy and remote monitoring. Non-compete agreements with key personnel.
Residual: Small management teams inherently carry key person risk. Sudden departure of a critical individual could disrupt operations during transition periods.
Tax & Regulatory Change Risk Low
The Risk
Changes to Paraguayan or investor home-country tax laws could adversely affect after-tax returns. Current regime: 10% corporate tax, no dividend withholding on qualifying distributions.
Mitigation
Paraguay’s 10% flat tax has constitutional stability. 8 EU Bilateral Investment Treaties provide additional protections. Tax treaty network under development. Investment structured to optimize tax efficiency under current law.
Residual: Tax laws change. Investors should obtain independent tax advice and recognize that current treatment may not persist for the full investment term.
Force Majeure & Geopolitical Risk Low
The Risk
Pandemics, international conflicts, trade disruptions, or sanctions could affect operations, supply chains, or market access.
Mitigation
Essential food production — typically exempt from restrictions (proven during COVID-19 when HidroBio operated without interruption). Domestic market focus reduces international supply chain dependency. Paraguay maintains neutral international stance. Diversified input sourcing. Remote monitoring capabilities.
Residual: Global dynamics are inherently unpredictable. Scenarios affecting trade or energy markets could have indirect effects on operations.
Stress Test Summary
Revenue can decline 30% and LP still recovers invested capital (1.02x). Under stress, GP receives zero — all available cash flows exclusively to investor protection. The ~$1.2M asset pledge provides an additional recovery floor beyond cash flow protection. We encourage investors to underwrite the Prudent Case (9.5% IRR, -10% revenue) as their decision baseline.
