By: Gil Toren
CEO
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Tethys

Tethys has developed a game-changing purification and desalination technology, for water of any kind, based on solar energy. Tethys‘ innovative modular system reduces energy costs by 90%! Tethys is revolutionizing an $18 billion growing market.

$559,900

Raised so far

31

Investors

0

Days to go
Type:Equity   
Stage:Seed +
Category:CleanTech
•  Successfully funded    
  • Campaign Highlights
  • Pitch
  • Team
  • Investors 31
  • Updates

Campaign Highlights

An Innovative technology which enables life

Water is the essence of life. Based on a technological breachthoughTethys has developed a cost effective solution that does not require an electrical infrastructure, and the power to turn any source of water - seawater, brackish water, industrial water and even polluted water - to quality drinking water. Through its unique and modular system, Tethys can assist billions of people around the world who are thirsty for clean water, as well as supporting the needs of agriculture and industry, while significantly reducing the harsh impact on the environment.

 

An $ 18 billion annually growing market

According to Bloomberg, the global water purification and desalination market, estimated at an annual volume of about $ 18 billion, is growing at a rate of 15% every year, and includes the realms of industry, agriculture, and tourism, alongside households and community needs.

Small plants consist about 30% of this market and are responsible for $ 6 billion alone. This is a fast growing market share, and will therefore be the primary initial target audience in Tethys' planned penetration into the global market.

Tethys is in touch with a large number of optional partners to distribute the technology and has signed two LOI agreements with companies in Jordan and Angola, along with negotiations held with several Chinese companies who have expressed interest in the company's technology.

 

Invest in an innovative solution to a global crisis

“Water crises … the greatest risk facing the global economy, outweighing the spread of infectious diseases, interstate conflict, energy price shocks and fiscal crises” -WEF Davos 2015

Water covers 70% of the earth. However, 97% are saline and non-potable, and only a small amount of the remaining 3% can be consumed without treatment or purification. The global increase in water consumption leads to a constant, daily decrease in the small amount of water suitable for drinking, running out of this resource every passing day, which is expected to be depleted within a few decades.

In a world where drinking-water reservoirs are shrinking at an ever-increasing rate, Tethys' technology is needed more than ever, allowing a 50% reduction in the total cost of drinking water production, and creating a globally adaptable global model.

Economists estimate that in the next 20 years an astronomical sum of about $ 500 billion will be invested in research and construction of infrastructures, related to purifying and cleansing water.

 

Experienced team with a proven track record

Tethys' team combines top experts in their fields - research and technology experts, water experts, mechanics engineers and business and marketing experts. Together, the team has developed a smart, cost effective, flexible, fast and dynamic modular system, which already raises great interest in the market.

 

Tethys in the media

The company and its unique technology, with its many valuable advantages, have received great attention in the industry and from media outlets in Israel and abroad, including CNBC, Leaders League, IsraelI21c and the Jewish Business News, which included it on the list of 25 Israeli tech companies especially worth follow for 2017.

 

Pitch

The idea

Three-quarters of the earth's surface is covered with water - but today due to accelerated development, urbanization and industrial development, as well as global warming, only 1% of this water is fresh and good for drinking. This quantity needs to satisfy the needs of the entire world - from agriculture and industry, to the drinking water that reaches faucets in every home and business around the world.

About one-third of the world's population - around 2.8 billion people - is already living in water-stressed countries, and a similar number is suffering from a lack of access to electricity which could allow for water purification. By 2025, this number is expected to double, so that two-thirds of the world's population is expected to suffer difficulties in obtaining fresh water, whose price is expected to increase over the years if no solution is found.

From China and India to Spain and large parts of the United States, the global water problem is already a major everyday issue, and is the greatest challenge humanity faces in the current century. Current solutions are characterised by high energy costs, heavy construction expenses, and a very slow deployment pace on site, and all this along with serious damages caused to the environment in the form of gas emissions and the production of toxic chemical waste.

In dark gray: countries who already suffer from water stress

How does it work?

Tethys' water purification and desalination technology was developed to meet the growing global need for fresh water, produced by an environmentally friendly method, while reducing energy costs by 90% using solar energy alone, compared to the demanding and wasteful in resources systems which are currently in common use.

The name stems from the mythological Greek Sea Goddess Tethys, sister and consort of Oceanus, mother of the great rivers, lakes and fountains of the world and of the Oceanid sea nymphs.

 

 

The innovation that Tethys brings to the solar desalination market is expressed by neutralizing the need to convert solar energy into electrical energy for the process of water purification. With no need for using of solar cells, TSD makes direct use of solar energy to heat the water .The process is based on multi-stage condensation evaporation through an innovative patented technology, which provides a much higher efficiency than similar systems tested in the past. The innovation is also reflected in the use of low-cost recyclable materials for the production of fresh water.

The Tethys system is based entirely on solar energy and is built from units which are independent modules, and can be connected to each other to create systems of various sizes: from small households or communities, to industrial or municipal volumes, depending on the client's need and the location. The ease and speed of setting up and operating the Tethys modules means a real revolution in purifying and desalinating water for the entire world.

 

Tethys' Advantages:

• An environmentally friendly system - does not produce gases, toxins and byproducts with negative effects

• Does not use chemicals for the process

• No CO2 emissions

• The system is supported by solar energy, meaning it does not need to be connected to electrical systems and can operate enen in off-grid parts of the world

• Energy utilization is 90% cheaper than existing systems

• Total water production costs are 50% lower than existing solutions in the small to medium market

• Flexible modular solution - enables the establishment of systems in different sizes as needed

• Suitable for all types of water

• Extremely easy deployment of the units in the field - allows access to clean water at a much faster rate than other existing solutions

 

Development & Vision

The company's innovative and groundbreaking technology offers a unique solution to the most pressing problem of the 21st century -  water scarcity. Tethys aims to become a market leader in desalination and water purification - a market that is expected to reach an estimated annual business volume of $ 28 billion by 2025.

After establishing 3 generations of the system, the Tethys team has achieved a complete and working, active POC system: opperated for 3 months to prove the feasibility and efficiency of the technology..

The next planned phase is the design of modules in the fourth version (V4) which will more than double the production capacity per day. These modules will be used to establish a pilot site which will enable the system to present all of the technology's advantages and serve as a basis for mass production.

The technology and concept behind Tethys was presented at the Watec 2015 event, dedicated to water and environment related technologies, and has attracted considerable attention from potential customers, as well as key players in the industry.

 

באיור: תרשים דוגמה למערכת המתכוננת לצרכי פיילוט

 

Achievements up-to-date

The amount invested in the company was used for R&D,, legal IP costs, materials and lab tests for 3 versions (V1-V2-V3) of Tethys modules, construction and operation of a Proof of Concept (POC) and initial marketing, including a highly successful participation in WATEC.

  • $350,000self funding + seed investment from private investors.
  • Conceptual design up to version 3 (V3) our POC all modules were built and measured.
  • Version 3 (POC) successfully producing water, demonstrating the feasibility of our technology
  • Thermodynamic calculations for V4 modules for large scale pilots – ready.
  • 2 Patents (filled): UK patent app, US APP
  • Marketing

 

Next Steps

Following a successful POC, the current round is meant to serve further R&D, the construction of a Pilot in Israel which will help showcase the advantages of the technology, marketing and preparations for a mass production ready design.

  • Design and production of V4 Modules for the next pilot.
  • Construction of test-site/pilot in Israel
  • Following a successful pilot in Israel, forming JVs (and/or other types of collaboration agreements outside of Israel
  • Marketing, capitalizing on existing leads as well as forming new ones
The market

 The global desalination and water treatment market is rapidly growing at a rate of 15% per year and is expected to double by 2025 and reach an estimated annual size of $ 28 billion:

 

Description: http://www.globalwaterintel.com/client_media/uploaded/images/Figure_1_42_Desalination_and_water_reuse_market_forecast_by_major_market_2011_2025.png

 

According to Bloomberg, the annual water purification and desalination market, estimated at $ 18 billion, is growing at a rate of 15% each year. 

The market is comprised of the industrial, agricultural and tourism sectors, as well as households and community farms.

Of this considerable sum, small plants account for 30% of the market, and are responsible for business activity valued at $ 6 billion.

According to major media outlets in the business world, the market is "hot" and is especially worth investing in. According to CNN, "Water is becoming more valuable than gold", and the Guardian advises investors: "Leave the gold - invest in water".

 

According to the GP Bullhound Report, one of the most significant trends in the desalination market is the rapid growth in the number of small plants, which are a growing market share, and will therefore be the primary initial target audience for Tethys' planned penetration into the global market.

The company is already in contact with a large number of optional partners to distribute the technology and has signed two LOI agreements with companies in Jordan and Angola, along with a number of Chinese companies that have expressed interest in its technology during the company's visit to China, for cooperation in the their geographic regions.

 

Below are the business sectors that constitute the market, as well as the global target markets:

Competitive analysis

Reports on the cost of water produced by competitors in the solar desalination field range widely in prices, with lower end prices usually attributed to heavily subsidized plants and/or theoretical estimates. In fact, on closer inspection, the cost of water to the solar market for a small to medium capacity of less than 10,000  m3per day may range from $ 4 to $ 12 and above, so it is better to examine the cost based on reports of concrete projects:

Beyond its technological advantage, Tethys benefits for its competitive adge of high profit margins. A revolutionary green product, patent protected, technologically proven (POC), adaptable modular solution, with significantly lower production and maintenance costs.

The exit strategy

Business Model

The low production costs of TSD’s modules enables the company to achieve high margins in comparison to the competitors. It also provides the opportunity to be flexible in the pricing of the product. The cost of water is differ in different geographical locations, the company will aim to lower the prices by about 50%. 

Water-As-Service: in certain locations, forming JVs for selling water (rather than modules) is the ideal solution. It allows for long term revenue stream and higher margins compared to direct sales to the end consumer. The advantage for the consumer is the fact that they do not need to make an upfront investment (CAPEX).

Go To Market

Following the construction of a pilot in Israel, the company intends to operate on several levels:

1. Creation of joint ventures and distribution agreements with companies with strong presence in various regions of the world.

2. After companies around the world have already expressed in technology, the company intends to expand its network of potential distributors. Among other things, preliminary negotiations are already underway with Chinese companies.

3. Increasing sales volumes through "leads" from interested customers, alongside participation in events and industry conferences.

 

Exit Strategy

The Company's strategy is reflected in possible activity on two levels:

• Purchasing or merging with a central water company: most key players are looking for a foothold in the rapidly growing market for small to medium sized facilities as well as new markets beyond their reach. With the construction of the pilot and subsequent successful demonstration of the company's technology, as well as the joint ventures that Tethys plans with overseas business partners, is expected increased interest from the leading players in the market. Purchase or merger under these terms may be very profitable for investors in the company, of course.

• Public Offering (IPO): Over the next few years, the Company will consider the possibility of a public offering. Capital raising in this manner will serve to expand the Company's business activity while creating liquidity for investors.

 

Mergers & Acquisitions

Prominent examples from the world in recent years include Inge, acquired in 2011 by BASF for $ 100 million with revenues of $ 11 million. In 2014, NanoH2O was bought by LG for $ 200M with revenues of less than $ 10 million.

Israeli companies which enjoyed success over the past two years include EMEFCY, which was established in 2009, offering distributed, low-cost and environmentally friendly solutions for the treatment of fresh water (their solution addresses a parallel market segment but does not compete with Tethys technology). The company was issued in 2015 on the Australian stock exchange, after the construction of a small and successful pilot in Israel. As of 2016, their market value was A $ 120 million, partly thanks to the entry into a cooperation agreement with a Chinese partner. In 2017, Emefcy merged with RWL under the name Fluence Corp. The combined entity offers a variety of de-centralized solutions with a current market cap of A $ 250 million.

Description: D:\Docs\מסמכים ופקסים\EXITVALLEY\Tethys\MERGERSLOGO.JPG

Israeli company WATER-GEN was founded in 2009, and attracted media attention with a facility that produces water from moisture in the air. In March 2017, the company received $ 100 million in investment from Vikram Solar as part of its R & D program, In order to develop additional products suitable for civilian use, especially for the Indian market.

Exits in the smaller-to-medium scale desalination and water treatment industries are characterized by high return values, with $ 47 billion spent in mergers and acquisitions since 2005, while acquisitions are being made by leading companies in the field. Leading players in the industry are power buyers, and young companies and startups are acquired in the early stages, often in close proximity to achieving their technology's POC.

Use of proceeds

Team

Dr. Moshe Tshuva
Founder
Biography
Dr. Tshuva (Ph.D.) is the Chairman of the Sustainable Energy Forum in Israel, as well as an expert in the field of thermodynamics and multi-layered flow, with experience in a variety of projects, products and patents.

  • Founder
Joshua Altman
Founder
Biography
Joshua has an MBA and B.Sc., with over 30 years of experience in initiating, developing, managing and supporting dozens of projects in the realms of security, water treatment and solar energy. As chairman of 4ID, he and his team have won the 2007 Invention award of the Israeli Ministry of Defense.

  • Founder
Gil Toren
Founder
Biography
Gil has 28 years of experience in managing engineering projects in the media and serves as chairman of the DB Group, among other activities; he has founded DB Digital, a digital archiving platform, which includes the Israeli State Archives and the world‘s leading medication manufacturer.

  • Founder
Zeev Emmerich
Founder
Biography
With an M.A. In Political Science and a B.A. in Economics, Zeev has over two decades of experience in research and teaching at institutions like NYU-TA, Cambridge University (UK) and Tel Aviv University (political theory and political economy).

  • Founder
Hezi Basok
Expert Advisor
Biography
Founder and CEO of "First Right Time", established in 2014, From 2004 to 2009, Hezi has managed the operations and service division of ECI Telecom Ltd. as senior vice president and head of global business activity, managing hundreds of millions of dollars.

  • Advisor
Amir Preisler
Expert Advisor
Biography
Amir is the founder and CEO of Hena, ‘with a BA in economics and business management. He brings with him 20 years of experience in investments, mergers and acquisitions, working with governmental funds and negotiating with governments.

  • Advisor

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