| Financing threshold: | €1,252,258.68 |
|---|---|
| Maximum issue size: | €2,004,030.96 |
| Invested so far: | €1,309,606.08 |
Strong economic & environmental impact - Watergenics contributes significantly to SDG 6 by providing advanced water quality monitoring solutions that help industries optimize water treatment processes. This leads to improved efficiency, reduced energy costs, and supports sustainable water management practices.
Patented solution provides excellent market potential - The patented technology delivers unmatched accuracy, real-time data, and low maintenance, positioning Watergenics for significant growth and market expansion.
Growing market and ready to scale - Watergenics is poised for rapid growth in a booming market with its advanced water quality monitoring technology. With the groundwork complete, the company is now ready to scale and optimize water treatment processes across various industries.
Promising exit scenarios - Watergenics has promising exit scenarios due to its advanced, patented technology and strong market position, making it an attractive acquisition target for big corporate industry players. Its scalability and potential for significant market share growth across various industries enhance its appeal for strategic buyers and investors.
Invest side by side with strong lead investors - €2 million funding round, of which €1 million has already been secured by anchor investors.
“With our patented technology, we aim to become the world's leading Water Reporting Platform, mapping global water quality and aiding society's transition to a sustainable economy. Invest in our innovative solution and join our impact-driven approach alongside dedicated lead investors!”
Dr. Liviu Mantescu, Founder & CEO of Watergenics
Problem: Water analysis is expensive, inefficient and takes time
Water is vital for life, but pollution threatens health, the environment, and the economy. Current water quality monitoring is slow, lab-based, and expensive, making water treatment a challenge. Multiple methods are needed to detect different pollutants, adding complexity and high costs. Traditional lab testing, or ex-situ analysis, takes hours to days to produce results from small samples. Additionally, many methods can only measure low levels of pollutants, making them less effective for highly polluted water.
Watergenics is completely dedicated to the field of water management, specifically the improvement of processes in the treatment of heavily contaminated wastewater or product water and the monitoring of wastewater. Their official vision is ‘becoming the water reporting platform of the planet’.
Solution: Watergenics Unveils AI-Powered Tech to Revolutionize Water Quality Monitoring, Saving Industry $65 Billion Annually
Watergenics revolutionizes water quality monitoring with its AI-based spectroscopic technology, detecting multiple pollutants in challenging industrial wastewater with continuous, real-time, on-site measurements. This innovative approach can save the industry $65 billion annually by optimizing treatment processes, increasing capacity by 35%, reducing energy consumption by 7%, and achieving an ROI of 7.2 x.
In particular, the following goals are achieved with the Watergenics technology:
Highly polluted water qualities naturally occur in industries that require water as part of the production process or where wastewater is produced as a by-product. In this respect, significant effects can be achieved particularly in the mining sector, desalination plants, the oil and gas industry and the paper industry.
About Watergenics
The company has been founded in 2019 and the team consists team consists of experts in Artificial Neural Networks, Molecular Physics, Operations, Laser Technology and Water Data Business Models. Operating on a SaaS model, Watergenics sells valuable water quality data rather than sensors. Notable clients include Veolia / Anglogold Ashanti, Anglo American, LMBV, RAG AG, SQM, and Barrick Gold.
Watergenics aims to create a market for water quality data and is raising €2 million to enhance industrial wastewater treatment in sectors such as mining, desalination, oil & gas, steel, pulp & paper, and semiconductors.
| Company name: | Watergenics GmbH |
|---|---|
| Founder and CEO: | Dr. Liviu Mantescu |
| Business ID number: | HRB 209714 B |
| Founding Year: | 2019 |
| Address: | Urbanstraße 64 10967 Berlin Germany |
| Industry: | Water quality monitoring & industrial wastewater treatment |
|---|---|
| Number of employees: | 15 |
| Website: | watergenics.tech |
| Social Media: |
Industries Face High Costs Due to Insufficient Water Quality Monitoring in Reverse Osmosis Systems
Many industries, including mining, desalination, oil & gas, steel, pulp & paper, and semiconductors, use reverse osmosis to clean water by pushing it through a special filter that removes unwanted particles such as salt and impurities, leaving clean water on the other side. However, due to insufficient water quality monitoring technology, these plants often cannot operate at their optimal level. High concentration levels lead to membrane clogging, resulting in replacement costs ranging from €400,000 to €500,000.
Watergenics: Advanced, Real-Time Water Monitoring Solution
Watergenics offers a cutting-edge solution for this challenge with their advanced water quality monitoring technology. Their single device measures multiple parameters using proprietary AI models and data sets, capable of detecting high levels of pollutants without the need for reagents. The system is plug-and-play, low maintenance, and self-cleaning, providing reliable, near-real-time data remotely and ensuring high accuracy across different types of water.
Watergenics: Accurate In-Water Monitoring, Preventing Clogs
What sets Watergenics apart is its unique in-water measurement system. Unlike competitors that transport water through pipes to sensors - altering accuracy and prone to clogging - Watergenics measures water quality directly in the environment. This approach ensures higher accuracy and reliability, eliminates clogging risks, and enhances efficiency and convenience over traditional methods. By providing real-time data and insights, Watergenics helps these industries maintain optimal operation levels, preventing costly membrane clogging and replacements.
Watergenics uses a cutting-edge, patent-protected optical probe for Raman spectroscopy to revolutionize water quality monitoring. Here’s a step-by-step explanation of how their product works:
Shipment and Setup:
Sensor Operation:
Data Analysis:
Data Delivery:
Maintenance and Calibration:
Watergenics operates on a data-centric business model, selling data rather than sensors. They provide three main products, all centered around delivering value through comprehensive water quality data:
Data as a Service: Offering real-time raw data.
Insights as a Service: Delivering actionable insights based on the data.
Metrics as a Service: Providing metrics for water reporting purposes.
Service Contracts and Costs
Watergenics secures customers through one-year contracts, which are renewable based on performance and customer satisfaction. These contracts cover both installation and maintenance services, ensuring reliable and ongoing support. This model fosters long-term partnerships while providing a predictable and sustainable revenue stream for the company. The inclusion of maintenance ensures that clients receive optimal performance from their systems, reinforcing trust and customer retention.
Customer potential
Reverse osmosis is a process used to clean water. It works by pushing water through a special filter that removes unwanted particles, such as salt and impurities, leaving clean water on the other side. This technology is versatile and serves many different industries, including mining, desalination, oil & gas, steel, pulp & paper, and semiconductors. As a result, the customer base is growing rapidly.
Notable customers include Veolia/Anglo-American, LMBV, RAG AG, SQM, and Barrick Gold, showcasing the company's credibility and effectiveness across various sectors. This diverse clientele highlights the wide applicability and demand for Watergenics' advanced water quality monitoring solutions.
Scaling Strategy
Watergenics scales its operations through:
Customer installation of the sensor-box, enabling real-time data collection.
Expanding services with existing customers and similar new customers.
Vertical Expansion
Watergenics plans to expand from one vertical to another by:
Minimizing costs in product adaptation across different verticals.
Assessing the cost of the problem for the customer, market size, and location.
Evaluating the ease of market penetration.
Specialization in Water Types
The company’s product development differentiates between mineral-dominated and organic-dominated industrial water. This requires specialized training for their database of spectra and machine learning algorithms, ensuring accurate and effective monitoring across various water types.
Expansion Plans
Watergenics aims to:
Grow within existing markets.
Create a market for water quality data by setting up a water reporting platform and developing the first real-time global water quality map.
Watergenics' innovative approach and robust business model position it well for continued growth and industry leadership.
Watergenics contributes to UN SDG 6 (particularly to SDG 6.3) by providing advanced water quality monitoring solutions that offer real-time data, unmatched accuracy, and low maintenance. These solutions help industries optimize water treatment processes, ensuring efficient use of water resources and preventing environmental contamination. By supporting sustainable water management, Watergenics aids in achieving the goals of clean water and sanitation for all.
For more information, visit the UN Partnership Page for Watergenics.
Watergenics operates in the dynamic water quality monitoring and treatment market, characterized by significant growth potential. As global concerns about water pollution and the need for sustainable water management rise, industries such as mining, desalination, oil & gas, steel, pulp & paper, and semiconductors are increasingly investing in advanced water treatment solutions. Stringent environmental regulations further drive this demand. Watergenics' patented AI-based spectroscopic technology provides a substantial market advantage. This positions Watergenics for major market expansion and significant growth in the coming years.
Founder & CEO
With 15 years of research in Economics at renowned institutions such as Max Planck and UC Berkeley, Dr. Mantescu brings unparalleled knowledge and innovation to the company. His advisory role at the EU Commission for water-based ecosystem services and his publications in CIHEAM further underline his authority in the field. Under his leadership, Watergenics leverages his extensive experience to pioneer advanced water quality monitoring solutions.
CTO
With 15 years of experience in machine learning and computations of molecular mechanisms, Sebastian brings a deep understanding of advanced technologies. Holding a Ph.D. in Physics from Cornell University and being a Fulbright Scholar, his academic excellence is well recognized, with publications in prestigious journals like Nature Chemical Biology and PNAS. His expertise drives Watergenics' innovative AI-based solutions, ensuring cutting-edge advancements in water quality monitoring.
Head of Operations
With 8 years of experience in Operations at Gorillas and HollowMen, Iulia brings a wealth of knowledge in managing complex logistics. Her unique background includes expertise in Syriac, Old Greek, Latin, Arabic, and military logistics in the Persian and Eastern Roman Empire. This diverse skill set enhances Watergenics' operational efficiency and strategic planning, driving the company towards excellence.
Watergenics’ current investors and advisors have strong experience in the natural resource extraction industry and scaling.
Dr. Alex Sandu leverages over 30 years of experience in water and wastewater treatment. His extensive background includes business development, as well as the construction, commissioning, and optimisation of treatment plants, ensuring seamless project execution. With his guidance, the company benefits from his extensive industry knowledge and proven success in driving growth and innovation, ensuring that Watergenics remains at the forefront of water quality monitoring solutions.
Gaëtane Suzenet brings over 20 years of experience in the water, energy, and environmental sectors, with a strong background in investment and innovation. As an advisor, her strategic insights and extensive network offer invaluable support in driving sustainable growth. Her expertise helps bridge the gap between technical innovation and market opportunities, enabling Watergenics to expand its reach and impact in the industry.
Dr. Marc Mogalle brings extensive experience as the Managing Director of Business Buddies and a seasoned CFO and investor. His deep understanding of investment and financial strategy is instrumental in guiding Watergenics' financial planning and growth. With Dr. Mogalle's expertise, the company benefits from strategic financial oversight, ensuring robust investment strategies and sustainable economic health.
ESOLIS EcoSystem Services UG is wholly owned by Dr. Liviu Mantescu, Founder and CEO of Watergenics. Additionally, several shareholders with industry expertise and extensive networks have invested, collectively referred to as "other business angels. An Employee Stock Ownership Plan (ESOP) has also been established, allowing key employees to benefit from the company’s growth.
You are investing in Watergenics GmbH.
Watergenics Inc. was founded to manage and expand operations in the United States.
Watergenics is raising a total of €2 million in funding, with ~€1 million already committed by strong anchor investors. The remaining funds will be used to scale operations with existing customers, expand into new industries, further develop AI models, and extend the solution to detect heavy metals.
~€1.5 million collected in the financing round, (~€500,000 by the crowd, ~€1 million by anchor investors)
~€2 million collected in the financing round, (~€1 million by the crowd, ~€1 million by anchor investors)
| Investor | Amount | |
|---|---|---|
| 1 | Seed I | €456,000 |
| 2 | Seed II | €550,000 |
| 3 | Crowd | €996,541,41 |
Watergenics is valued at €12 million pre-money, meaning before the investment is received. This valuation was set by the new lead investors and supported by existing investors.
It is based on:
a) The strength and uniqueness of Watergenics' sensors, software, and AI technology.
b) The current stage of development.
c) The customer base, which includes global corporations such as Veolia, AngloAmerican, and SQM.
d) The significant growth potential in the water analysis sector.
e) The potential exit opportunities to companies like Veolia.
The valuation is also comparable to other companies at a similar stage with equivalent growth potential. The last funding round in 2023 was based on a valuation of €8 million, when Watergenics was still in the validation phase and had only completed pilot projects.
These factors, along with Watergenics’ plans to scale across the industrial wastewater treatment sector and create new markets for water quality data, justify the company's valuation and make it an attractive investment opportunity.
With this funding, we plan to expand into four additional sectors in 2025 and 2026, implementing 5-10 installations in each. These sectors are expected to include desalination, oil & gas, chemicals, and semiconductors.
In all of these sectors, water treatment using reverse osmosis systems is dominant, and they all face a similar challenge: How can I optimize the operation of these systems? We excel at solving this problem, following the strategy of "Do more of the same in similar sectors."
Once we have established references in these new sectors, we plan to launch a larger Series A funding round to scale up significantly.
Since 2020, Watergenics has successfully completed three angel funding rounds, raising a total of €3.07 million through convertible loans. These rounds have progressively increased the company’s valuation cap, reflecting the growing potential of Watergenics and its technology. Below is a breakdown of the fundraising history:
Type of funding |
Year |
Amount |
Conditions |
||
| 1 | Angel Round I |
Convertible Loan |
2020/21 | €213,251 | €5 million cap, 1,5% p.a. |
| 2 | Angel Round II | Convertible Loan | 2021 | €1,032,650 | €6 million cap, 1,5% p.a. |
| 3 | Angel Round III | Convertible Loan | 2022/23 | €1,825,300 | €8 million cap, 1,5% p.a. |
| Total | €3,071,202 |
The interest rate was adjusted in line with the changing interest environment during the extension of the convertible loans on 30.09.2023, increasing from 1.5% to 10% effective from 01.10.2023 until conversion on 30.07.2024.
Watergenics has promising exit scenarios, primarily through mergers and acquisitions (M&A) by major industry players.
There are early signs of interest, with three companies expressing initial interest in a potential takeover. This interest from diverse sectors highlights the strategic value and market potential of Watergenics' technology.
Potential acquirers include:
Water Industry Companies:
Acquiring Watergenics presents an opportunity for leading companies in the broader water industry to enhance their technological portfolio with cutting-edge AI-based spectroscopic solutions. This acquisition would enable these companies to offer more accurate and efficient water quality monitoring, setting them apart from competitors. Watergenics' technology not only drives better regulatory compliance and operational cost savings but also positions acquiring companies as innovation leaders, expanding their market reach and improving overall efficiency within water management processes.
Photonics Industry Companies:
Acquiring Watergenics would be highly beneficial for photonics industry companies by creating technological synergy through advanced Raman spectroscopy, enhancing their product portfolios and capabilities. This acquisition would open new markets in water quality monitoring and environmental analysis, diversifying revenue streams. Additionally, owning cutting-edge AI-driven water monitoring technology would position these companies at the forefront of innovation in both the photonics and environmental sectors, strengthening their technological capabilities, driving innovation, and expanding market opportunities.
Water Analysis Industry Companies:
For companies specifically within the water analysis sector, acquiring Watergenics would strategically complement their existing product lines with AI-driven spectroscopic tools. This advanced technology enhances the precision of water analysis and drives improved performance in regulatory compliance and cost efficiency. By integrating Watergenics' solutions, these companies would be better equipped to innovate, improve workflows, and solidify their leadership in the water quality analysis market, securing a competitive advantage and unlocking new business opportunities.
Mining and Engineering Companies:
Acquiring Watergenics would benefit mining and engineering companies by enhancing environmental compliance, improving operational efficiency, and supporting sustainability goals. Their advanced monitoring technology ensures accurate pollutant tracking, reduces water contamination risks, and minimizes costly membrane replacements. This integration supports corporate sustainability initiatives, boosting reputation and appeal to environmentally conscious stakeholders.
In this update section you will find new, project-relevant information that we receive.
Invesdor does not conduct a separate review of information received after the start of the financing phase.
1. Is there an alternative roadmap for the scenario without subsidies or are they essential for the forecast years?
Watergenics: "We have calculated several different scenarios. However, we believe in our base case scenario for the following reasons:
Subsidies
We have an approval rate of over 90% for grants.
For two grants (GRW & ZIM), worth over €300k, we have already received verbal approval. This is contingent on converting all convertible loans, which we have now completed.
The German R&D grant (Forschungszulage) has a very high approval rate.
These grants have been included in the scenarios, based on an estimation of the likelihood that they will actually be realized.
Equity Financing
In addition to grants, we are in constant talks with investors for equity investment. One of our existing investors has just verbally confirmed an additional €400k investment."
2. In the financing history, it states: "The interest rate on the convertible loans was adjusted to reflect changes in the interest market during the extension on 09-30-2023. It was increased from 1.5% to 10%, effective from 10-01-2023 and continuing until the conversion on 07-30-2024. Is this correct?"
Watergenics: "Yes, this is correct."
3. Can you confirm that all convertible bonds were converted prior to this issuance? If not, which ones are still outstanding, and at what conversion price?
Watergenics: "Yes, all convertible loans have been converted.
We had three different types of CLAs, depending on the time of investment:
Angel investor group I invested a total of €229,079 in November 2020, converting at a share price of €161.29.
Angel investor group II invested a total of €1,021,600 between August and December 2021, converting at a share price of €193.55.
Angel investor group III invested a total of €1,818,200 between August 2022 and November 2023, converting at a share price of €258.06."
4. Additionally, I am very interested in the cash flow forecast and the balance/cash position for 2024 and beyond, given the losses in previous years.
Watergenics: "Based on our current committed capital, cost structure, and sales pipeline, we plan breakeven at the end of 2025.
Here's why:
Cost Structure: We maintain a very moderate cost structure and will only cautiously increase personnel costs based on our order intake.
Revenues: We are generating more recurring revenue and, whenever possible, will ask for annual or quarterly up-front payments, which will further strengthen our liquidity position.
Sales Pipeline: Our pipeline is full, as we have outlined. While it's difficult to predict the exact timing of when these customers will sign orders—since they are mostly large corporations in a slow and conservative sector—we are very confident that we are at a tipping point. As we can show more and more references, we believe orders will ramp up based on our very attractive business case. Additionally, our customers don't need to change their current processes which makes it easy for them to integrate our solution."
1. What major orders is Watergenics currently finalizing, and what additional contracts are expected by the end of the year?
Dr. Liviu Mantescu, Founder & CEO of Watergenics:"We are close to finalizing several (follow-up) orders, including:
In addition, we expect further orders by the end of the year, including:
2. What percentage of equity is being offered in the current financing round, and how does this relate to the depositary receipts for shares?
Dr. Liviu Mantescu, Founder & CEO of Watergenics: "The equity offered in percentage as shown on the pitch page refers to number of depositary receipts for shares to be issued as part of the financing round. Under consideration of the anchor investments also shown on the progress bar the equity offered is: 9.27% - 14.05 %."
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