RAISING PRIVATE FINANCE IN THE WATER SECTOR: TRENDS & EXAMPLES Helping SME s bring ideas to market Fiona Griffith 11 October 2016
Introduction
What are the needs? 01/11/2016 isleutilities.com 3
Water Innovators FOCUS - Small and Medium Enterprises 01/11/2016 isleutilities.com 4
Drivers Barriers Challenges & Opportunities Track Record Cash Skill Set IDEA TO MARKET Environmental Policy Cost 01/11/2016 isleutilities.com 5
A Solution
Technology Approval Group TAG is a global innovation forum for the world s leading water utilities. The TAG model was first launched in the UK in 2005, we now run 12 TAG groups across 5 continents, with more groups on the horizon. Global Locations UK Netherlands Middle East Australia Singapore US Consulting With its highly skilled team of engineers and scientists Isle can provide a wider range of consulting services, from research consultancy to due diligence (both technical and market) to feasibility and evaluation studies. 01/11/2016 isleutilities.com 7
What is TAG? Understands industry need Identifies novel technology solutions (SMEs) Accelerates technology development / commercialisation Facilitates international industry collaboration Strong links to private finance Channels private investment into technology companies / SME s to benefit the industry 01/11/2016 isleutilities.com 8
TAG the benefits Industry Collaboration Cost & Energy Savings Global Technologies from different sectors Investment Improved Performance 01/11/2016 isleutilities.com 9
Our Track Record 150 TAG members globally 180 TAG meetings 600 Technologies presented to TAG members 400m+ Investment secured Over 4000 technologies reviewed 01/11/2016 isleutilities.com 10
Global TAG Members investment 150 Global utilities > 300m investment Customers served > 350m investment R&D investment 01/11/2016 isleutilities.com 11
Client Base Technology Companies Companies 01/11/2016 isleutilities.com 12
Client Base - Investors Investors Key Facts 5-8m Typical investment size 70+ Technology companies received investment 400m+ Investment facilitated by Isle 01/11/2016 isleutilities.com 13
Investment Trends and Examples
Some recent trends in water Clear drivers for innovation but adoption of new technologies by the water sector can be frustratingly slow Competition for funding is fierce and seed funding is scarce VCs have typically moved away from emerging technologies to less risky later stage businesses More grant applications and increased access to European funding Business Angels have increased their activity in the water arena Traditional funding mechanisms are now being replaced by private equity, family offices and other strategic and corporate investors, as well as some crowd funding opportunities that are now being identified. 01/11/2016 isleutilities.com 15
Investment opportunities Sector themes to cover: Leakage Data analytics / software as a service Water reuse Resource recovery Energy Examples to include: Grant funding Strategic and corporates Traditional VC models Licensing Acquisition 01/11/2016 isleutilities.com 16
Oxford Flow Technology Application: Network pressure regulation Technology Description: A lightweight polymer PRV to control pressure in networks (water and gas). It replaces more traditional regulators that are bulky, heavy and prone to cavitation. The Oxford Flow Regulator is far lighter and smaller for easy installation, more reliable with fewer moving parts, and made of plastic makes it resistance to corrosion. Oxford Flow established spin out from Oxford Uni Proof of market grant from Innovate UK Oxford Flow wins Venture Fest 750k raised from Oxford Sciences Innovation Product to market. Put forward for TAG March 2016 2014 June 2015 July 2015 Sept 2015 2016
GW Fathom Technology Application: Smart grid for water Technology Description: FATHOM is the world s foremost Software-as-a-Service (SaaS) provider in the Water Sector. FATHOM defines the vertical between meter data management and the customer through a variety of products including meter data management, customer information system and a customer engagement platform. Isle Identified Technology & Undertook DD Fathom Presentation at TAG In EU and US Initial uptake in US, Trials with Thames Water. $6.5m invested by XPV Significant Investment from XPV and Silver Lake Kraftwerk ($20m) Growth of shared platform for water software entrepreneurs 2012 April 2013 2013 2014 2015
Nanostone Water Technology Application: Water treatment and reuse Technology Description: With operations in the US and Germany, Nanostone develops and manufactures membrane solutions for industrial process fluid and water treatment applications. It offers ceramic and polymeric membranes for food and beverage/dairy, CTX and leachate, electro coating, and industrial and municipal water treatment. KSM Water (Germany) acquired by True North Venture Partners New US based management team to bring ceramics to market A number of ceramic membrane pilot applications set up Nanostone acquired Ultura s polymeric membrane business Expanding to new markets e.g China 2012 2013 2013/14 2014 2015
Ostara Technology Application: Management and recovery of nutrients Technology Description: Ostara s Pearl Process resolves struvite issues at WwTPs, recovering phosphorus and nitrogen for reuse as an eco-friendly fertilizer, saving on chemical costs, reducing biosolids production and creating a new revenue stream from the pure crystalline pellets, CrystalGreen. Technology demonstration at plants in Canada Vantage Point and Frog invest $10.5m to accelerate commercialisation Raised a further $14.5m to launch expansion $13m of funding from Wheatsheaf - focus on fertilizer markets & sales Resource committed to expand activities in Europe 2007 2008 2012 2013 2016
Lontra Technology Application: Aeration Blade Compressor for Variable Capacity Compressors Technology Description: The patented design has a novel rotary geometry, designed for high volumetric and thermal efficiency. It can deliver the benefits of variable capacity, variable compression ratio and variable output through the basic mechanism. This obviates the requirement for complex variable speed control systems, delivering the efficiency improvements of VSDs (of up to 35%) without the attendant capital costs. DTI grant for 75k, Imperial Innovations & NPI invested 400k Lontra Presented at TAG. Trial facilitated with STW Lontra secured 360k of investment for scale up Lontra established licensing deal with Sulzer New markets industrial & automotive. 250k from Innovate UK 2005 / 2006 2007 / 2008 2010 2014 2015
Summary & conclusions There are many water innovators; SMEs are key in developing novel technological solutions for the sector. The benefits of private finance may include: Helping novel technologies become a commercial reality Expediting development and timeframe to market Seeking to add value, in addition to capital, to the companies in which they invest, in an effort to help them grow Bringing external investment into the water sector Meeting funding needs which allows for development and commercialization of technologies across different market sectors and geographical regions. 01/11/2016 isleutilities.com 22
Thank you Fiona Griffith +44 (0)7875 446 657 fiona.griffith@isleutilities.com