Water, Water Everywhere – But Where’s The Funding?

 How many times did you think about water this month?

If you’re like most people in developed countries, you probably only thought about it when paying your water bill – or if there were news articles about floods or droughts or oceans. If you’re in parts of the world where water is not plentiful, the chances are that you thought about it if you had to plan your day around when water was going to come out of the tap. If, like many of the poor, you had to walk miles or stand in queues to collect drinking water, you probably spent a large part of your day thinking about it.

Water is essential to life and yet, we don’t hear a great deal about innovation or venture capital funding or startups that are changing the world in this sector in popular media or news. Which brings up the question – where is the funding for innovation in this sector?

Venture capital funding in water is a relatively small investment compared to the investment in high-tech or even in some of the other clean tech sectors. For example, there was about $60 billion in venture capital invested in 2015 according to Mattermark. Of that, about $2 billion went into clean tech from the analysis performed by the Cleantech Group. Interestingly, about $45 million or less than 1% of that investment was in water. One reason for this lack of VC investment in water is the larger time required for returns. This may change as more companies start working in the data science and water space – but as of now, it still holds true.

So where else does investment in water come from? Corporations like Veolia will often fund technology that has been prototyped successfully, but needs more investment to scale.

What about innovations that are still at the conceptual or prototype stage? Funding for those are most likely to come from governments with grants for universities, labs and small businesses.

Perhaps the most interesting place to look for innovations in the water sector is to watch what communities are doing to solve their particular problems around the world. Water is one of those problems where people working together at the community level can create solutions that are as innovative as someone in an office with access to funding.

What our community are reading

Moonshots, Models, IoT and Machine Learning in Agriculture

  What do Google, Climate Corporation, early stage startups in farm robotics, and researchers trying to figure out how to feed the world sustainably have in common? They’re all grappling with one of the toughest challenges of working with natural systems - how do you work with data that is sparse, unevenly distributed and with systems that have so many connections and interactions with other systems?     Before the advent of cheap sensors that are connected to phones, easily accessible satellite data and drones that can fly over fields quickly and inexpensively -     scientists in companies and academia worked on developing plant and crop models that incorporated as many aspects of the farm and as much data as was available so that they could understand and predict what was likely to happen on the field. Understandably, the forecasts took some time to produce and as the models grew more complex, issues about how to estimate model parameters and the uncertainty a...
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Our online community space is now live!

 Our online community space is now open to anyone who has signed up for a free or paid course on our website! In addition to everyone who signed up for our cohort-based courses, we're now expanding it to all the members of our community. If you've already signed up for any of our courses, check your email for the invitation for the space. It's where we'll get together to talk about all things data science and clean technology related, discuss the latest research, network and make connections with other professionals in the sector. It's an invitation only , no bots and no trolls allowed space - so come on over! Here's where you can check out our courses and join our community !
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State of the market update - players, funding, jobs and more

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If you are working in the high-tech sector or are at a startup, the first half of 2023 was definitely a roller coaster. We saw venture funding dry up for many sectors; saw the collapse of the Silicon Valley Bank - the bank where many startups and venture capital funds kept their money; and observed layoffs happen in the technology giants - Google, Facebook, Apple and others. In fact, one of the VC firms, Cervin, did an analysis showing that venture funding has been at an all-time low this year, with only 19 mega deals being signed in Q1 2023 compared to 98 the previous year; funding fell by 53% for angel and seed funding and by 30% for Series A rounds. In fact, except for companies focusing on generative AI and AI adjacent technology in the high-tech sector, it has been an exceptionally difficult year financially. How did the clean-tech sector fare? Unsurprisingly, while there were some impacts on startups and their ability to raise additional funds from venture capital firms, the se...
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