Attracting investment pitfalls, challenges & opportunities

Changes in legislation together with ageing infrastructure has led to an urgent need for new companies with new ideas to enter the market. One of the key characteristics for the water companies to attract investors is to strike, when possible, a strategic relationship with a large water utility, even where the utility does not put capital at risk. This helps investors see a defined route to market for the new technology. It also gives investors a sense that while the technology may not yet be commercialized, it is credible and at a much more advanced stage than technologies which are still at the conceptual stage. Another way in which water technology and treatment businesses can make themselves attractive to investors is to formulate a strategy which will reduce the roughness typical to businesses which are focused mainly on technology sales. A strategy focused on asset ownership or operations and maintenance alongside equipment sales will allow investors to get more comfortable that the business has longer term baseline revenues.