Taking A Stand And Busting The Myth of the DEI Advantage for Women-Led Water Startups

You shoulda seen her ... standing at the back of the room like some character from a Norman Rockwell painting ... this Mild-Mannered Midwestern Toxicologist (whose startup has a technology that destroys PFAS chemically, doncha know) ... giving the speaker what for ... but I'm getting ahead of myself ...

A couple weeks ago, I was at the prestigious World Water-Tech Innovation Summit in London where I had been asked to moderate a Fireside Chat on Water Affordability, Accessibility, and Equity for Water Utilities in the face of rising costs. It was right at the start of the program, giving me ample time to attend other sessions and visit with the many Startups and established Water Tech Firms exhibiting at the event.

The very last session of the conference was a panel of Venture Capitalist Investors on Maintaining Momentum. They opened up the end of the session to discussion. When one of the audience members asked what they were doing that was innovative, the VCs explained that they only fund companies when they reach the Growth stage - after they've achieved "Traction" (i.e. have clients) - and that there just wasn't enough funding for new Water Startups, who were basically just expected to BOOTSTRAP (i.e. self-fund the early stages of their Startups).

So I raised my hand and asked whether the fact that Early Stage Water Startups having to Bootstrap while they are developing their technologies and market - meaning people who either have saved a bunch of money while working high-paying jobs with their startups on the side, or who have a "Supporting Spouse" or parent or someone else available to cover the costs of their food and shelter and healthcare while getting their Startups off the ground - whether this could be why there are so few Women and Economically-Disadvantaged Founders and Founders of Color who make it to the Growth Stage where they can get access to their funding.

At this point, the VC Moderator looks down at me from the stage and "explains" that Women and Minorities don't need early-stage funding because there are all these Women and Minority Owned Small Business programs that will take care of them.

At this point, I hear this Michigan accent from the back of the room. "Are you telling me that ..." - at which point, someone puts a mic into the hand of Denise Kay , Founder of Enspired Solutions , who nervously held herself up on the back of the chair with her other hand while she (and I) tried to set the speaker straight on a few things:

1. Just because the Government (and Government Contractors) asks whether you're a Woman or Minority Owned Business doesn't mean you get the contract - only that they can check the box saying they CONSIDERED Women and Minority Owned Businesses (these programs are NOT "Set-Asides" that would only contract a specific group)
2. In order to get a Government Contract (or a Subcontract with a larger Government Contractor), you still have to have substantial past experience and prior contracts already - which most early-stage startups don't have.
3. The process of getting a Women-Owned or Minority-Owned Small Business Designation is long and expensive and, in the end, it is only a "hunting license" - giving you the opportunity to apply for federal contracts with a special designation but, again, not actually ensuring that you will win any contracts.
4. Based on my 30+ years experience in the industry and interviews with 100s of Water Professionals and Entrepreneurs, I have found that, in far too many cases, Women-Owned Small Businesses in the Water Tech space are ACTUALLY OWNED AND RUN BY MEN who get their wives, daughters, girlfriends, secretaries or whatever woman they can find, setting them up as President and an Owner so that they can run the company but still qualify for WOSB contracting - which they often get as Subcontractors to their buddies who are their Clients or Prime Contractors in the Old Boys Network. Women Water Startup Founders who actually have Technical Backgrounds in Water often don't get the same support, whether they have the #WOSB #EDWOSB designation or not (better enforcement is needed).

We in the Water Sector and other Water Professionals need to recognize that WOSB, MBE and other programs for Underrepresented Founders DO NOT provide set-asides and DO NOT guarantee that Early and Growth Stage Startups led by Underrepresented Founders will get sales or contracts.

Especially for Early Stage Startups, we need to ensure that we have funds that are supporting Women-Led, Eocnomically-Disadvantaged, and BIPOC Led Water Startups. That's why our event - WaterPitch! The Water Startup Matching Extravaganza(TM) - includes a range of Investors and Funders including those who intentionally seek to support Diverse Founders such as Techstars Washington DC and Halcyon as well as other newer funds that support Climate and Sustainability Focused Startups more generally - COMBINED with more advanced stage funders with many years of experinece working with Water Startups including Arborview Capital , The Freshwater Trust / Cleveland Water Alliance , GreenSwans , Collaborative Fund , Propeller and Resilient Earth Capital .

Today is International Women's Day - and the theme of #IWD2024 is "Invest in Women: Accelerate Progress" - so PLEASE buy from, contract, and INVEST IN WOMEN-LED WATER STARTUPS!