Imagine H2O

Background

The struggle for clean water is one of the greatest challenges of our time. It effects health, economics, politics, and the environment. Globally, water scarcity affects every continent and affects 4 out of every 10 people, according to the World Health Organization. Today, World Water Forum reports that 1.1 billion people live without clean water. Additionally, UNICEF reports that water related diseases are the leading cause of child death, killing 4,500 children per day.

Right here in the United States, we face severe and rapidly escalating water problems. Demand in the U.S. has tripled in the past 30 years while the population has grown only 50% (Goldman Sachs). Up to $1 trillion is needed to rebuild America's aging water infrastructure (Goldman Sachs). Over 80% of US waterways are contaminated by medications (US Geological Survey). And based on a CNN report, over 50% of America's groundwater is polluted. States and cities are unprepared for water challenges that are only expected to grow more severe: in 2007, 40% of states suffered droughts and over 70% of states will incur water shortages by 2013 (EPA).

Major water sources for millions of Americans are in jeopardy: there is a 50% chance that Lake Mead, a key source of water for 25 million people or approximately 10% of the US population, will run dry by 2021 (Scripps Institute). Over the last 25 years, droughts have killed more Americans than any other U.S. weather disaster and have caused $150 billion in damage nationally (Dept. of Commerce). Moving and treating water uses 19% of California's electricity and 30% of its natural gas (California Energy Commission).

Yet, the pervasive lack of awareness of water problems and the opportunity they provide for top entrepreneurs and investors means few innovators and funders are focusing on water. In addition, for-profit water solutions often face difficult paths to market. Today, less than 0.5% of venture capital funds water entrepreneurship. In the non-profit sector, the water crisis has been broadly under-served because activity focuses primarily on developing countries, relies on philanthropic and policy-based solutions, not inventive commercial solutions, and lumps water with other social or clean energy initiatives.

To jump-start water innovation and address this growing crisis, Imagine H2O was founded in 2007 by a team of leaders in the water, energy, and non-profit sectors at Harvard Business School. They saw the world's water crisis as an opportunity for new ideas, new businesses, and new ways to help people and the planet.

Organization Mission

Imagine H2O is a non-profit with a mission to inspire and empower clean water and sanitation solutions. Imagine H2O solves a "market failure" in water innovation by turning water challenges into opportunities. The organization seeks to address this lack of in innovation focused on targeting water problems, which is highlighted by less than 0.5% of venture capital funding water entrepreneurship and a pervasive lack of awareness of water problems and the opportunity that is presented. The organization seeks to rectify the fact that few innovators and funders focus on water, an even smaller number focus on the right issues, and there has not been a program designed to overcome go-to-market challenges for new water solutions.

Imagine H2O solves this market failure by defining prize categories which focus attention on market opportunities that can be sustainably funded, providing validation via our expert network to facilitate investment in competition winners, and providing a go-to-market vehicle by incubating winners.

Full Circle Fund Role

Imagine H2O was a non-profit in an early stage of development when Co-Founder Tamin Pechet met with Full Circle Fund members Meera Balakumar and Johanna Johannesson in early 2008 to explore a partnership to support the organization's launch to the next level of execution and traction in the communities it wished to serve. Full Circle Fund members were excited to find an organization seeking innovation and visionary thinking to rectify water-related problems faced by communities around the globe. In the resulting project, Imagine H2O requested that Full Circle Fund support its efforts through:

• early seed funding
• a skilled volunteer base to execute the mission of the organization
• strategic advisory and outreach to grow the organization and develop its mission within the numerous public, private and other water communities IH2O hoped to serve.

Impact

In the year that Full Circle Fund has been involved with Imagine H2O, the project has resulted in a number of successes. Highlights of the Imagine H2O/Full Circle Fund partnership include:

• Securing additional cash and in-kind donations amounting to almost $400,000 from large institutions interested in supporting Imagine H2O's mission
• Building a broad volunteer base of almost 100 volunteers passionate about water
• The promotion of a broader web-based community of 400 water-stakeholders
• A dynamic website highlighting IH2O community members, pre-competition events and other information /news put forth by IH2O
• Several well-attended pre-competition workshops and events on both the east and west coasts of the United States.

NAME: Imagine H2O
LOCATION: San Francisco
WEB: imagineh2o.org
GRANT TERMS: 2008-2009, 2010-2011
TEAM LEADS: Meera Balakumar