Bhutan's Jabchor 2.0 Connects 10 Businesses With Investors in Push for Equity Financing

Ten Businesses Pitch for Capital Beyond Bank Loans

Ten Bhutanese businesses have reached the final pitch stage of Jabchor 2.0, presenting their plans to 15 investors, including 13 domestic investors and two international investors. Selected from 28 submissions, the finalists range from a business still at the idea stage to established companies seeking money to expand.

The platform, launched by the Department of Employment and Entrepreneurship (DoEE) under the Ministry of Industry, Commerce and Employment, connects promising Bhutanese entrepreneurs with investors who can provide funding in exchange for a share of ownership. Its second edition concluded with a ceremony celebrating the 10 businesses, chosen for their innovation, ability to grow and readiness for investment.

For entrepreneurs who lack assets to pledge against a bank loan, that approach offers another way to raise money. It also brings responsibilities: founders must agree on how much of their company investors will own and prepare their finances and legal arrangements for the partnership.

Jabchor has supported 19 entrepreneurs and helped generate more than Nu 36 million in private investment since its inception. The initiative aims to turn promising ideas into businesses ready for the market while supporting innovation, employment and a more diverse economy in Bhutan.

The immediate task for the latest participants is to turn investor interest into negotiated agreements. Investors express interest through Expressions of Interest (EOIs), followed by formal negotiations and, when those succeed, investment deals. The process is designed to move from an EOI to a completed deal within 90 days. A total value for completed investments in this edition was not given.

What Entrepreneurs Exchange for Investment

Equity financing means raising money by selling a share of a business. An investor becomes a part owner, while the entrepreneur receives capital to develop or expand the company. A bank loan works differently: the business borrows money and must repay it under agreed terms.

Traditional lending can be difficult for new Bhutanese businesses because banks require collateral, meaning property or other assets pledged as security for a loan. Many startups and businesses in their early stages do not have enough of those assets. The resulting shortage of capital can restrict innovation and prevent promising ventures from growing.

Jabchor 2.0 seeks to address that financing gap for businesses at the idea, startup and growth stages. Its areas of focus include agriculture, manufacturing, information technology, services enabled by information technology and green technology.

Investors can contribute more than money. The platform also connects entrepreneurs with mentorship, business networks and guidance on meeting legal and financial requirements. Those forms of support are intended to help businesses expand sustainably.

Foreign direct investment (FDI), investment from outside Bhutan into businesses in the country, is also welcome through the platform. That gives participants access to international partnerships alongside domestic capital. Investors gain opportunities in sectors with potential for growth and social or economic impact, while contributing to Bhutan's development and its Gross National Happiness goals.

From Applications to a Deal Within 90 Days

Jabchor 2.0 begins with a national call for applications. Selected entrepreneurs then take part in a three day bootcamp covering business valuation, legal compliance, financial verification and preparation for pitching to investors.

Business valuation is the process of deciding what a company is worth. It matters because the amount invested and the agreed value of the company help determine the ownership share an investor receives. Financial verification and accounting preparation help participants explain their business finances during negotiations.

Participants receive another three weeks of preparation and mentorship to refine their business models and presentations. The sequence moves from learning how investment works to explaining a specific business opportunity to potential backers.

• Applications: Businesses respond to a national call, followed by selection for the programme.
• Bootcamp: Selected entrepreneurs complete three days of training on valuation, legal requirements, financial checks and pitching.
• Further preparation: Participants receive three weeks of mentoring to improve their business models and investor presentations.
• Pitch day: Entrepreneurs present to domestic and international investors, who can sign Expressions of Interest.
• Negotiations: The programme aims to complete the process from an EOI to a final investment deal within 90 days.

The final pitch is therefore one part of a longer process. Entrepreneurs need to present a convincing business case, then work through the financial and ownership terms with interested investors.

A Cohort Spanning Ideas and Established Companies

The 10 finalists represent different levels of business development. One was at the idea stage, five were startups already generating revenue, and four were ventures at the growth stage.

• The business at the idea stage was not yet licensed but had made pilot sales.
• The five startups were licensed, earning revenue and had been operating for more than one year.
• The four growth ventures were licensed and had been operating for more than five years.

The selection brought together digital services, sustainable agriculture, essential services and wellness products. Their financing needs also varied, from developing technology to buying equipment and expanding production.

The mix shows why Jabchor extends beyond helping people launch a new company. Businesses with years of operating experience can also need a different source of capital when customer needs change or expansion requires equipment that existing finances cannot cover.

Sewage Services Seeks Machinery for Changing Buildings

Ugyen Phuntsho, founder of UP Sewage Services, brought nearly a decade of experience to the programme. His company provides environmentally friendly sewage services across Bhutan, but newer building structures have created a need for modern machinery.

Ugyen described the equipment he hoped investors would support and the borrowing that had financed his business so far:

We have been operating for nearly a decade, but new building structures require modern machinery, which I hope investors will support. So far, I have been running this business on loans.

For UP Sewage Services, the proposed investment is tied to a concrete operating need: machinery suited to the buildings the business now serves. Equity would give the founder another financing option alongside the loans he has relied on.

Ugyen also valued the bootcamp's practical lessons on attracting investors, auditing and accounting. An audit involves checking financial records, while accounting keeps track of the money a business earns, spends, owns and owes. Both help a founder prepare for discussions with prospective investors.

Digital Receipts, Wellness Products and Trout Farming

Bishal Dhakal, founder of Light WebX, presented BillsToTrack.com, a cloud based software as a service (SaaS) platform. SaaS means software delivered as an online service. His platform replaces paper receipts with digital versions sent through email or WhatsApp.

Bishal aims to integrate the software into hardware to simplify digital transactions for businesses and their customers. He described the platform as a source of both investor connections and practical knowledge about fundraising:

Through this platform not only did I get investors but also learnt technical aspects of raising funds for my business.

Kingdom Essences Private Limited also attracted investor interest. The company makes essential oils and wellness products from Bhutan's pristine highlands and plans to expand its operations, with export markets among its ambitions.

AgroNest Centre, a sustainable integrated farming venture, supplies fresh and smoked trout to local hotels and restaurants. It too secured investor interest and intends to expand, including looking toward export markets.

The businesses illustrate the range of plans presented through Jabchor: improving an essential service, simplifying receipt handling, expanding wellness production and growing food supplies. For each entrepreneur, the investment discussion centres on how additional capital can support a particular next stage of the business.

Ownership Choices and Other Routes to Funding

Entrepreneurs can decide whether to accept investment from one investor or several. The choice affects who shares ownership and needs to be settled as part of the funding arrangement.

Jigme Tenzin, director of Innovest, the programme's technical partner, explained that founders retain that choice and have alternatives when a pitch does not attract an Expression of Interest:

It is up to the entrepreneurs whether to have multiple investors or not. If participants do not get an EoI from investors, they can either opt for crowdfunding or the Small and Medium Enterprises (SME) board through Royal Securities Exchange of Bhutan (RSEBL).

Crowdfunding means seeking contributions from a wider group of people. Alongside that route, the exchange's SME board offers another option identified by the programme for businesses seeking finance.

Jabchor also identifies the possibility of listing on the Royal Securities Exchange of Bhutan's Alternative Investment Market (AIM) Board as part of an investor exit strategy. An exit strategy describes how an investor plans eventually to sell an ownership stake. Such planning gives entrepreneurs and investors a way to discuss both the start of their partnership and its later stages.

Legal Support and Help After Investment

The platform combines access to investors with support for business incorporation and compliance with the Companies Act of Bhutan. The Corporate Regulatory Authority (CRA) supports incorporation, the process of formally establishing a company.

Legal safeguards are intended to protect both entrepreneurs and investors. Investors are offered businesses that have undergone screening, measures intended to reduce risk and clear exit strategies, including the possible AIM Board listing.

Entrepreneurs can receive support for up to a year after investment. That assistance covers human resources, audits and export strategies, helping businesses deal with staffing, financial checks and plans to sell beyond Bhutan as they grow.

The programme's wider support includes bootcamps, mentorship and access to local and global investor networks. Its purpose is to help participants manage the changes that can follow an investment, rather than ending assistance at the point when funding is agreed.

Since its inception, Jabchor's combination of financing and business support has helped 19 entrepreneurs and generated more than Nu 36 million in private investments. Those cumulative figures describe the programme's work across its history.

A National Programme With Recurring Support

Jabchor 2.0 forms part of a broader effort to make equity financing a continuing part of Bhutan's business support system. Its advisory board brings together the DoEE, the Royal Monetary Authority (RMA), the Royal Securities Exchange of Bhutan (RSEB), the Bhutan Chamber of Commerce and Industry (BCCI), the CRA and the Department of Industry (DoI).

Funding comes from the Economic Stimulus Programme, with additional support from the Government of India. The arrangement brings employment, financial, business and regulatory institutions into the same initiative.

Kunzang Lhamu, Director General of the DoEE, set out the department's intention to give Jabchor a lasting national role:

Our goal is to institutionalise Jabchor as a national equity financing program, with expanded outreach, structured support, and recurring implementation.

The programme's design reflects international best practices, with attention to transparency, investor protection and sustainability over time. The intended economic benefits include new jobs, stronger entrepreneurship and innovation, and a broader range of business activity in Bhutan.

What Entrepreneurs Still Need to Learn

Many Bhutanese entrepreneurs remain unfamiliar with equity financing and the responsibilities that come with accepting investors. Raising money through shared ownership requires founders to understand the terms of the partnership as well as the amount of capital offered.

Business valuation, legal compliance and strategies for entering new markets are among the areas where greater awareness and education are needed. Jabchor's training and mentoring address those practical needs, from preparing financial records to explaining expansion plans.

The latest participants show how those lessons connect to business decisions. UP Sewage Services needs machinery, Light WebX wants to connect software with hardware, and Kingdom Essences and AgroNest Centre are considering expansion and exports. Each requires funding discussions grounded in the company's operations and plans.

The programme aims to build a generation of Bhutanese business leaders able to compete regionally and globally. Its immediate work remains concrete: helping entrepreneurs negotiate investment, meet legal requirements and manage growth, while giving those without an EOI other routes to seek capital.

Key Points

• Jabchor 2.0 selected 10 finalists from 28 submissions for pitches to 13 domestic and two international investors.
• The cohort included one business at the idea stage, five startups generating revenue and four ventures at the growth stage.
• The platform offers equity financing as an alternative for businesses that struggle to meet bank collateral requirements.
• Training includes a three day bootcamp and three weeks of further preparation, followed by a target of completing investment deals within 90 days of an EOI.
• Jabchor has supported 19 entrepreneurs and helped generate more than Nu 36 million in private investment since its inception.
• Support includes incorporation, legal compliance, investor networks and assistance for up to a year after investment.
• The DoEE aims to establish Jabchor as a recurring national equity financing programme, backed by public institutions and funding support.