How to turn water crisis to a business opportunity using innovation and creativity
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CEOs of water startups believe not only in their own prospects, but in the prospects of their industry peers. Imagine H2O is an accelerator program for water businesses and has accepted 60 companies out of more than 450 applicants. More than 20 of our CEOs answered a survey for this article. They would, almost universally, invest in water startups other than their own.
There are many investment opportunities in the water innovation sector. Imagine H2O’s portfolio accounts for more than $1 in $10 of angel and venture investment in water. And most of our portfolio companies plan to raise capital within the next six months. There are plenty of opportunities for strategic investors and venture firms to put money in the water sector.
There is little competition to finance water startups compared to other industries. There are only a handful of investment firms that specialize solely in water. Most Silicon Valley investors do not focus on the industry. And Imagine H2O’s companies report that over the past few years, they have felt little change in competition among venture and angel investors to get into water deals.
Water startups have performed well despite minimal regulatory support. Now, regulatory trends are in their favor. The low price of water creates a common concern among would-be water investors. Interestingly, water and wastewater rates are rising across America, generally faster than any other utilities.