SQM Lithium Ventures Announces First Acquisition Opportunity Deal for Chilean Startup: Remote Waters

SQM Lithium Ventures, the corporate venture capital fund for the company’s lithium business, announced the first Simple Future Equity Agreement (SAFE) with Remote Waters, a Chilean start-up focused on water treatment for rural communities. This contract allows the startup to receive investment and establishes that the number of shares the investor will receive will be determined during the next round of investment.

“This means an opportunity to have a share in the future in the possible formation of this startup into something bigger, into a joint-stock company. This. It’s more than just a loan. This is one of the working formulas at Lithium Ventures. Several formulas have been studied to find out which method of financing startups is the right one. Lithium Ventures is handling it. On the one hand, to identify the areas related to the company, the interests of the company in this case, and at the same time to have a more financial and investment perspective to see what the startup needs to grow,” said Carrada Torre Pulso. , SQM Hydrogeology Manager.

“Remote Waters seemed like an interesting proposition to us because it targets a fundamental segment globally. Access to water and clean water is an issue that affects a large part of the world’s communities. Remote Waters developed this idea of ​​providing a technological solution to provide drinking water or irrigation to communities that are relatively isolated. We thought it was a very interesting idea,” he added.

SQM Lithium Ventures believes that this alliance is going in the right direction given the potential of the startup born in 2018.

“We believe that this initiative, the Remote Waters startup, has great potential. We bet that the startup will find a way to grow to transform itself into a more solid company. This is where the idea of ​​a partnership with them arose. We think we are partner suitable to give you the financial support and vision of a large company. What they don’t have yet. We believe that their idea is correct, very targeted. We think it’s the perfect partnership between a big one that has the resources and vision and a small one that has a very real vision.”

SQM LV has already invested an initial capital of US$200,000 and it can be increased. The company’s participation in the startup has not yet been determined.

“That part has to be determined at a time when it’s determined how this company stands in front of the broader shareholders. This is when SQM determines what involvement it will have. It depends on the potential that the company will be able to demonstrate to shareholders that it is not just us.”

Remote Waters was selected from a wide selection of startups interested in the water sector.

The startup, founded in 2018, aims to solve the problem of lack of access to drinking water that affects many communities in Chile and the world. They have projects both in Chile and abroad. Its founder, Pablo Cazorla, told Pulso in detail what the company does and praised the alliance with SQM Lithium Ventures.

“What we do is clean polluted water. Process and leave in useful water. We use adapted processes such as reverse osmosis. We focus on rural settlements. All this in the context of water scarcity and drought. We can treat seawater, rivers, wells, both for drinking and for agriculture,” Cazorla said.

Similarly, he claimed that “we entered the More Lithium and Less Footprint competition and won it at the time. The project consisted of purifying water from the Loa River and enabling agriculture in the desert. It was like the first record with SQM Lithium Ventures. Then this first program opened and we were able to get in… We started to question the business model a little bit and how to scale and combine our perspectives to make ourselves a global business.”

Cazorla sees this alliance with SQM LV as a vote of confidence.

“The impact is big because, in general, the venture capital industry in Chile is heavily focused on fintech, software and apps. SQM Lithium goes ahead and invests in impact entrepreneurs, and in our case it’s service, and it’s at the center of its focus, and it’s not just lithium, it’s water. A giant company comes with us and supports us. This is a huge vote of confidence and a demonstration that we are scaling.”

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