Behind the Scenes of Corporate Venturing Success with Hydrific

Everyone loves a success story. We do too.

But we also love talking about the three years of hard work and dedication that culminated in a roaring success.

Julia Deister (Auer) , CEO and Co-founder of Hydrific, part of LIXIL , shares the journey of building the water conservation venture: from day 1 of Incubate, to getting funded on Kickstarter.

The time to start is now. Enjoy.

By Elke Boogert , Mach49 Managing Editor

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Behind the Scenes of Corporate Venturing Success with Hydrific

It was a big hurrah from everyone at LIXIL when Hydrific managed to fund their Droplet product on Kickstarter in just 11 minutes (yes, you read that right!). But three years of hard venture-building preceded that golden moment. Hydrific’s CEO and Co-founder Julia Deister (Auer) is here to tell us all about it.

This interview was based on a conversation between CEO Julia Deister and Edward Ross , the COO of Mach49.

You’d been with LIXIL for five years when the opportunity to lead a new corporate venture came around. What were your expectations?

'When the project first came up, it sounded incredibly fun, inspiring, and like nothing I had ever done before. So, it was a no-brainer for me to jump on this opportunity as I believe you can only grow with new challenges. I was genuinely curious about the incubation process and eager to learn. While I had high expectations going into this experience, the reality far exceeded anything I could have imagined. The first weeks felt like an intense entrepreneurial bootcamp.

We had to start from scratch, letting go of preconceived notions and embracing a new way of thinking. In short, it was far more empowering, transformative, and entrepreneurial than I had initially anticipated.'

What was the most surprising thing that you learned while building Hydrific?

'When we kicked off the incubation, we had a grand vision in mind: build a netzero home to address water conservation. In a traditional corporate environment, we would have probably kept going in that direction. However, the key was to recognize the importance of pivoting when necessary. By the second or third week, it became clear that a netzero home was not the optimal entry solution for today's market. We decisively switched gears and didn't dwell long, discovering new opportunities that we had not even thought about on day one.

A powerful aspect that enabled us to adapt quickly was the value of engaging directly with consumers and subject matter experts.

Instead, we talked to over 200 people personally and synthesized our findings each week, making small decisions based on the insights we gathered. This hands-on approach made a huge difference in shaping Hydrific's direction and ensuring we were creating solutions that truly resonated with people's needs.'

Droplet is a cutting-edge ultrasonic sensor for monitoring water usage. What was it like “coming up” with this product?

'We experienced quite a challenge at the beginning: we found that there was little emotional connection with water conservation (which was the incubation's focus).

It was encouraging to hear that not all communities struggle with day-to-day water concerns but at the same time, it’s a real issue. We can't simply ignore it. So, we drilled deeper.

The issue we found was: people wanted to do something about water conservation but lacked the knowledge and tools to feel empowered to make a difference. This lack of user-friendly resources led many people to de-prioritize the issue. When we started hearing that more and more, a lightbulb went off – we knew there was something there.

We came up with over 30 solution ideas to bridge this gap, and Droplet emerged as the standout concept. We tested rapid prototypes of Droplet with consumers, and the response was overwhelmingly positive. People loved it. Although we faced uncertainties initially, it became clear that we were on the right track once we hit that point where our solution truly resonated.'

(Droplet can be installed onto your pipes at home within five minutes, and within seconds you have insights into your water usage. But the product goes beyond mere monitoring, it also actively advises you on how you can conserve water and flags any leaks. By providing both knowledge and practical tools, Droplet bridges the gap identified during the incubation process.)?

What is Hydrific’s relationship with the LIXIL corporate Mothership?

'We have a truly symbiotic relationship. We can leverage the vast network and resources from LIXIL while maintaining the agility and lean processes of a startup.

From day one, we’ve had the full support of LIXIL’s leadership and executive team, with a dedicated Hydrific Venture Board in place to provide guidance and ensure alignment with LIXIL’s overall strategy. Through regular updates to the Board, we maintain transparency and stay connected to the broader organization.

During our meetings, we discuss key goals and make critical go/no-go decisions, enabling us to move quickly while adhering to essential company processes. This balance gives us the flexibility to react in an agile fashion adapting to changing market signals, bolstered by LIXIL’s global reach and expertise.'

Take us back to the day that Droplet got funded on Kickstarter SO fast.

'The Kickstarter launch was an unforgettable experience: the entire team was gathered in the New York office, eyes glued to a huge screen. It felt like watching the last few minutes of the Super Bowl.

We went live and in just 11 minutes we were funded. We sat there for hours, going “Another order. Another order”. It was such a moment of relief and excitement. We were so happy because it was a validation of the years of hard work, the countless iterations, and the small bets we had made along the way. That moment crystallized the power of our process, the market fit for Droplet, and the incredible team we had built.'

JULIA DEISTER is the CEO and Co-founder of Hydrific, part of LIXIL . She traded her Senior Director position at LIXIL to found the corporate venture. Julia has over 15 years of experience in the consumer product industry scaling emerging business units and developing innovative digital strategies – she’s known for her entrepreneurial mindset and leadership skills. Julia specializes in strategic planning, operating models, stakeholder management, go-to-market strategies, and IoT product development. Julia's ability to inspire high-performing teams and develop impactful business strategies has been crucial in leading Hydrific from concept to execution.

Prior to joining LIXIL, Julia held global business development and e-commerce roles at Grohe, driving significant revenue growth and improving operational efficiencies. Julia holds an MBA from Columbia Business School, a degree in International Business from the University of North Florida, and a Bachelor’s in Sales and Cooperation Management from DHBW Mosbach. She currently resides in New York.

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