Echo River January 2023 Update
In this issue:
New Blog Post: Making the most of Flooding
Industry News: Exits!
ERC Portfolio News
New Blog Post: Making the most of Flooding and learning for the future.
In January, we were reminded of California’s climate predicament: to be living amidst the twin risks of flood and drought simultaneously. Increasing ocean and atmospheric temperatures drives more energy and water vapor into our storms, while also creating more potential for deeper droughts.
What these successive atmospheric rivers highlight is that more of California’s precipitation will arrive as rain than snow, and in greater concentrations. So how can California, and other places in the world with torrential downpours and monsoons, make the most of these plentiful water opportunities? How can groundwater basins be replenished? What will prevent sewer systems from being overwhelmed? What information is needed to better predict and manage future atmospheric river events? Read the full blog post online.
Industry News: Exits!
Xylem to acquire Evoqua in $7.5 billion all-stock transaction. In one of the biggest ever deals in the water industry, Evoqua will give Xylem more access to industrial customers in life sciences, electronics, energy and food industries. These industries are also targeted by Echo River’s portfolio companies. The combined companies will generate revenue of $7 billion.
Mark Cuban’s Brondell to acquire Tim Cook-backed Nebia showerhead company for an undisclosed amount. The Nebia acquisition illustrates there is a market for products into the residential and commercial space for saving water and energy. Over 100,000 Nebia shower heads have been installed so far.
ERC Portfolio News
Hohonu, an ERC portfolio company, will participate in adding digital sensor technology to indigenous Hawaiian fish pond management on Oahu and Maui. “The data will provide a baseline from which fishpond practitioners will be able to tailor their practices to their conditions, whether that would be focusing on shell fish, limu (seaweeds) or fish cultivation.”
Teotihuacan Feathered Serpent
In December, my family visited Mexico City and spent a day touring the ancient city of Teohuatican. 20,000 people resided here from about 200 BC to 600 AD, when the population mysteriously disbanded, torching their buildings and fleeing to other parts of the region. Ironically, our lovely tour guide could not provide much information on the natural resource or water portion of the story. I later discovered a fascinating book chapter by Susan Toby Evans and Deborah L. Nichols called “Water Temples and Civil Engineering at Teotihuacan, Mexico. (Thanks to my niece Kira Waldman for introducing me to this work.) They found that, “Through their engineering projects and their art, Teotihuacanos reveal themselves to be water worshippers from the earliest days of their city, and over time they emphasized different water sources and the deities associated with them.” These structures and very detailed Feathered Serpent sculptures are a fascinating window into how this ancient people honored, carefully protected and guided water for human and spiritual use. Ultimately, water fostered centuries of thriving culture, and its challenges contributed to their understanding that their civilization was no longer sustainable. “Drought was a chronic threat, but torrential rains brought erosion and flooding, a challenge to the city’s planners who tried to harness the flow of water through the city as well as minimize potential damage from these powerful forces. When the city’s decline began in the sixth century, with challenges to the rulers and a falling population, the stresses of severe weather would further weaken community stability.”
Investor Presentation: If you are an Accredited Investor looking to advance water sustainability and climate adaptation, consider investing in Fund I, which remains open to new investors. Five portfolio companies already have markups. Please see the Echo River investor presentation here. Contact Peter to learn more.
Please send any questions or comments to firstname.lastname@example.org and (415) 203-0432. Here's to a future of water abundance.
About Echo River Capital Echo River Capital is a seed fund advancing water technology for global impact based in San Francisco. Echo River invests in emerging technologies to digitize, decarbonize and decentralize the water cycle to improve human health, the environment and climate resilience. Peter Yolles, General Partner, is the former co-founder and CEO of WaterSmart.com, which was acquired in 2020. Peter adds strategic value with 30 years of operating experience in the water industry along with a Yale MBA in finance and a Master's in water science, policy and management.