AquaVenture Holdings (AVH) was formed to become the world’s leading water service provider. Through its Quench and Seven Seas Water businesses, AVH provides water solutions, utilizing state-of-the-art purification and desalination technologies.
The term “Water-as-a-Service,” or WAAS, refers to providing municipal, industrial and commercial customers with a reliable, worry-free, low-cost water supply without requiring up-front capital investment. In such arrangements, water systems are operated and maintained by water experts, yielding predictable and contracted water costs for customers.
The global water market is estimated to be $600 billion, with annual growth of 7%, according to a 2014 report by Bank of America Merrill Lynch. The imbalance of water supply and demand is expected to intensify as a result of:
- population growth, urbanization, and industrialization;
- depletion of groundwater sources;
- pollution of waterways; and
- inefficient management of water infrastructure.
According to the 2030 Water Resources Group (a public/private partnership led by the World Bank and the World Economic Forum), these stressors will create a 40% global shortfall in available freshwater by the year 2030. Anticipated population growth of 1 billion people between 2015 and 2030 is the primary driver. The United Nations predicts that 50% of the world’s population will be living in areas of high water stress by then. AquaVenture believes that the growing scarcity of clean water and the capital to spend on water treatment systems will drive strong and growing demand for Water-as-a-Service.
AquaVenture Holdings is the creation of a forward-thinking investor group led by Element Partners and Virgin Green Fund, two major investors in water technology businesses, along with CEO Doug Brown, who has had a successful career in water technology, including the leadership of Ionics, a pioneer in the water technology industry.