LAT Water is tackling the escalating global water crisis with an innovative technology for purifying industrial wastewater using low-grade waste heat. We sat down with Commercial Director, Richard Teideman to discuss the company’s unique approach, the reasons behind investor interest, and their strategic fundraising via the Angel Investment Network to facilitate rapid scaling. He also gives his invaluable insights on securing funding in the current climate.
Tell us about LAT Water and how you became involved with the business?
I met the founders of LAT Water in 2015 – the technology was captivating, and in terms of sustainability – ahead of its time. The issue of wastewater purification was in its infancy, and as time has gone on, it is become an issue globally. They say “water is the next crisis and the “new oil”. There has never been a more important time to preserve our water across the planet.
What is the problem the business is looking to solve?
The global water crisis – better use of the world’s water resources by recovering clean water from heavily contaminated industrial effluent using low grade waste heat. An additional benefit is using the waste heat thus reducing the heat discharge into the environment.
What is attracting investors to the business?
A competitive, economic solution for industrial wastewater recovery.
How is LAT Water able to separate waste water more efficiently than traditional methods?
We use low grade waste heat to evaporate the contaminated water below the boiling point of water and then partially recovering the energy when the clean water condenses to act as preheater for the incoming flow. Overall the impact of using low grade heat and recovering part of this drives the attractive economics.
Why did you raise via Angel Investment Network?
We like the personal connection that AIN gives, along with the scale and breadth of reach. They are fast, efficient and easy to work with.
What will you do with the funds raised from investors during this round?
We have a significant amount of commercial interest – so we are raising funds for a very important reason: We are looking to scale fast. The need is huge and we have a solution that we want everyone to be able to benefit from.
How have you found fundraising in the present climate?
A bit slower, but for the right proposal, there are funds available. Investors are still interested in attractive projects in the right space and globally, there is a real move where people are starting to recognise that the need for water and waste water purification is becoming increasingly important.
What are your top tips for anyone raising for the first time?
I think commercial traction is the most important thing. If your company is already gaining customers and customer intent – then this will always be a rich source of proof that your product is needed in the market.
What could the UK Government do to encourage more support for innovative businesses like yours?
Better provision of support for development capital in the £500k to £5 million bracket. Provision maybe by quasi-equity tools rather than Innovate Loans. This could be overseen and administrated by the funds themselves – they already have a good hold on the commercial viability of the market.
Do you think there are any misconceptions about doing business in China and if so what are they?
Yes. China is an ultra competitive market and gives an opportunity to hone a competitive creative business offering. (Look at electric cars, solar panels, e-payment apps). There are less moves to steal Intellectual Property, although you still need to be aware of this. Social network marketing is more important than in the West. Successful private businesses are not relying on state aid but exploiting the opportunities of scale that China offers.
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