Enviro Water Minerals Company
Water technology company
Overview
Raised: $118,477
2013
Energy, Power, & Natural Resources
Cleantech
B2B
High
High
Summary Profit and Loss Statement
FY 2022 | FY 2021 | |
---|---|---|
Revenue |
$15,162 |
$932,669 |
COGS |
$0 |
$0 |
Tax |
$0 |
$0 |
| ||
| ||
Net Income |
$-868,187 |
$-83,509 |
Summary Balance Sheet
FY 2022 | FY 2021 | |
---|---|---|
Cash |
$406,210 |
$319,860 |
Accounts Receivable |
$12,500 |
$124,973 |
Total Assets |
$754,140 |
$769,306 |
Short-Term Debt |
$0 |
$0 |
Long-Term Debt |
$0 |
$289,002 |
Total Liabilities |
$0 |
$289,002 |
Raise History
Offering Name | Close Date | Platform | Valuation | Total Raised | Security Type | Status | Reg Type |
---|---|---|---|---|---|---|---|
Enviro Water Minerals Company | 04/19/2024 | Netcapital | $12,651,762 | $118,477 | Equity - Common | Funded | RegCF |
No prior online funding rounds.
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Synopsis
Water scarcity is a pressing issue affecting people worldwide, including in the United States. According to the United Nations, by 2050, at least one in four people will likely live in a country affected by chronic or recurring freshwater shortages. Desalination, the process of removing salt and other impurities from seawater or brackish water, has been touted as a potential solution to this problem. However, traditional desalination processes are energy-intensive and generate significant brine waste, which can harm marine ecosystems if not properly managed.
Enviro Water Minerals Company, Inc., a Texas-based water technology company, aims to address these challenges with its sustainable desalination process. The company's technology desalinates water and recovers all water and minerals for beneficial use. This process provides high water recovery, avoids disposal issues, and can be applied to various industries. It also significantly increases the returns of desalination plants. It is the ideal solution for private desalination plants or operators in rich countries concerned about their impact on the environment and their image. Enviro Water Minerals Company hopes to significantly contribute to solving the global water scarcity problem by redefining desalination.
Price
Enviro Water Minerals Company is raising funds at a valuation of $12.65 million. The company's technology and processes show promise, with a real differentiation over competition and numerous patents. Even is the company is still pre-revenue, its technology is revolutionary and patented. Therefore the valuation is fair. If the company survives to its first contract, investors can easily hope to get a minimum of a 10x return on their investment by investing in the company.
Market
Enviro Water Minerals Company (EWM) operates in the water desalination market, which has grown considerably recently. Factors such as increasing population, rapid urbanization, and rising water scarcity in several parts of the world drive the demand for water desalination equipment. The global market for water desalination was valued at $15.53 billion and is expected to grow at a CAGR of 9.4%.
Industrialization has put significant strain on water resources, with water being extensively used in creating industrial processes for manufacturing and other tasks. The increasing need for water from industrial end-users such as oil & gas, paper & pulp, and food & beverage sectors is expected to fuel demand for water desalination facilities. These factors are expected to bolster the growth of the water desalination equipment market.
Governmental initiatives in various countries also support the growth of the water desalination market. For instance, in India, the government's Atal Mission for Urban Rejuvenation and Transformation (AMRUT) program, which focuses on establishing infrastructure that ensures adequate water supply and sewage networks, is expected to drive market growth. Desalination plants are also crucial to the development of the Middle East, where many oil countries have the financial capacity to build expansive and high-return plants like the one designed by EWM.
While the water desalination market is moderately competitive, with established players such as Veolia, Suez, and General Electric Company, Enviro Water Minerals Company, with its focus on sustainable desalination and water and mineral recovery, is well-positioned to make a significant impact in this industry.
Team
Chairman Joseph Haussman and CTO Paul Wallace co-founded Enviro Water Minerals Company. Haussman previously worked in finance and investment banking. He brings business expertise to the team. Wallace is a chemical engineer who started his career working on gasification technology. In 2008, he started working on desalination technologies and co-founded EWM in 2012. He is responsible for driving the development and implementation of innovative water solutions.
Enviro Water Minerals Company has a small team of five experienced members. The team's expertise is centered around water technology and sustainable desalination. Sue Snyder, the company's CEO, combines business and engineering experience and leadership skills. She worked for five years for EWM before being appointed CEO. She is determined to lead the company to success. Craig Pederson, Sr. VP, and Samuel Fletcher, VP of sales and marketing, also bring their extensive networks.
Differentiation
Enviro Water Minerals Company (EWM) differentiates itself in the water technology industry through its sustainable desalination processes and recovering all water and minerals for beneficial use. The company's technology offers high water recovery rates and addresses disposal issues, providing a cost-effective and environmentally friendly solution. EWM's processes have undergone extensive validation, including engineering studies and successful pilots, demonstrating the viability and effectiveness of its technology.
EWM has numerous competitors like Veolia, Suez, and General Electric Company. While other startups and research projects are working on this problem, we couldn't find any company offering a commercially ready desalination solution that wasn't rejecting harmful brine in the water. As a result, EWM can actually partner with its competitors to license its technology or use them as plan operators. Dozens of potential customers find the company and reach out to them out of interest for their unique offering.
Performance
EWM has made significant progress in developing its Full Recovery Desalination process. The company has conducted engineering studies, engaged large outside engineering firms to validate its approach, and completed two pilots using its technology. Feasibility studies have also been performed on brackish water, seawater, and produced water.
In terms of commercialization, a full-scale commercial plant was built based on EWM's technology in El Paso, Texas, based on its process technology. However, the plant has experienced delays in commissioning and ownership changes due to issues primarily related to equipment provided by others. Despite these challenges, work is still ongoing at the site towards a new operational plan.
EWM has recently signed three distribution agreements: one with a large multi-million dollar company in the Middle East and North Africa specializing in produced water, one with a consulting company in Mexico, and one for the Philippines. These agreements have revenue targets that the partners must meet to maintain exclusivity. EWM expects to generate revenue from these partnerships in the near future.
EWM's recent revenue drop is due to their choice to stop a consulting contract with a large desalination project for good reasons. The contract is now being renegotiated and may bring new revenues by the end of the year - these revenues would cover the company's burn of $55,000 per month.
Risk
Enviro Water Minerals Company faces several risks in the water technology industry. One of the primary risks is the competitive landscape, with established companies like Veolia, Suez, and General Electric Company already operating in the same market. These competitors have significant resources and market presence, which could make it challenging for Enviro Water Minerals Company to gain market share. Additionally, the barriers to entry in the water technology industry are high, requiring substantial investment in research and development and the acquisition of necessary licenses and approvals. Enviro Water Minerals Company will need to navigate these barriers effectively to succeed.
Furthermore, Enviro Water Minerals Company operates in an industry with high market approval or license regulations. Compliance with these regulations can be complex and time-consuming, potentially leading to delays or additional costs.
Bullish Outlook
Enviro Water Minerals Company (EWM) is a water technology company that has the potential to revolutionize the global water industry. Its sustainable desalination process recovers minerals, which makes the process more environmentally friendly and can increase the desalination plant's revenues by 20x for only a 10x higher capital cost. EWM is the only company currently offering this solution. Its technology appeals to private desalination plant owners and public plants from wealthy countries willing to both limit their environmental impact and improve their image.
The company has already generated revenues through consulting services and feasibility studies. Despite not having the means to pay for marketing yet, the company regularly receives inbound requests and has a solid pipeline of potential customers. It could start generating consulting revenues again in the next couple of months. It also established valuable distribution partnerships. Enviro Water Minerals Company also holds patents for its technology, which serves as a significant barrier to entry for potential competitors.
EWM is led by a team of dedicated leaders. At a fair $12 million valuation, the high potential revenues of this moonshot deal could bring high returns to investors, thanks to its licensing business model.
Bearish Outlook
Enviro Water Minerals Company (EWM) operates in a large and fast-growing market where established players such as Veolia, Suez, and General Electric Company already dominate the global water desalination equipment industry. These competitors have significant market share, resources, and established customer relationships. They have higher chances to win regular project bids as their project is more in line with current desalination plants expectations.
Indeed, even if EWM's technology can considerably increase the desalination plant's revenues, its technology involves higher capital expenditures and requires to educate potential clients. EWM is a moonshot. As it evolves in the infrastructure industry with a licensing business model, it depends entirely on the completion and timing of its potential clients. Securing a deal can take months, and licensing revenues typically take 1-2 years from the start of discussions before being wired. Therefore, funding is critical for the company at this stage.
Executive Summary
Enviro Water Minerals Company (EWM) is a water technology company that offers innovative solutions for water creation and recovery using sustainable desalination. The company's technology is applicable across various industries and provides high water recovery while avoiding disposal issues. The company's processes also recover all water and minerals for beneficial use.
EWM's products and services are in a competitive market with significant growth potential. Rapid urbanization, population growth, and global water scarcity are driving the demand for water desalination equipment. Furthermore, industrialization has strained water resources, increasing the need for water from industrial end-users. This is expected to fuel the demand for water desalination facilities and bolster the growth of the water desalination equipment market.
Despite the promising market, EWM is in the early stages of development and is currently working with potential clients to secure contracts. While the company's licensing revenues could be extremely high, it requires funding to sustain itself before closing its next deal.
EWM is a moonshot operating in a high-potential market and offering a unique and promising solution to solve water scarcity with a smaller environmental impact. The company's current lack of revenue and the uncertainties and delays of the infrastructure industry make it a risky investment.
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Founder Profile
Hubble Hausman: Pioneering Profitable and Sustainable Water Tech
Desalination plants sustain the needs of 300 million people worldwide, and their number keeps going up as water scarcity increases. However, desalination plants release brine, a salty water affecting marine ecosystems.Enviro Water Minerals (EWM) built a process capable of eliminating brine rejections while increasing desalination plants revenues. We reached out to EWM’s co-founder, Hubble Hausman, to learn more about the company’s work with the potentially biggest desalination plant in the world.