Voyage of Discovery – Insights and future of the Water Discovery Challenge

As the tide recedes on the first Water Discovery Challenge: we celebrate the achievements and look towards what’s ahead

The Water Discovery Challenge, launched by the Ofwat Innovation Fund, was an 18-month competition aimed at accelerating innovations in the UK water sector. This was the first time that the Ofwat Innovation Fund allowed entries from outside water companies, attracting 247 eligible entries. In total, £5.5 million in funding was available, shared between 20 finalists who received up to £50,000 each, and 10 winners received an additional £450,000.

Beyond financial support, the Water Discovery Challenge offered mentorship from water companies and an expert support package, which included sessions on industry insights, intellectual property, media training, business case development and more! The competition officially concluded on 19 September at a celebratory event held at Challenge Works’ offices in London.

Attendees of the Water Discovery Challenge final event

The day brought together key stakeholders from the Water Discovery Challenge: mentors who dedicated up to 10 hours of support per project, sector reviewers who assessed entries at each stage and our judges who recommended the 10 winning projects for funding to Ofwat. Also in attendance were team members from both the winning and finalist projects, alongside the delivery team (Challenge Works, Arup and Isle) and Ofwat representatives. The event, featured a series of planned sessions and talks, designed to provide valuable insights to project teams and to gather feedback from all stakeholders.

Peer learning: the journey to adoption

In the first session participants discussed tackling common challenges in adopting new innovations in the water sector and the importance of learning from peers. Key issues raised included funding limitations, with insufficient resources to scale from small demos to full implementation, and the difficulty of navigating a fragmented and complex industry to find the right decision-makers. There was also a focus on the challenges water companies face in adopting new innovations, influenced by the priorities of the 5-year water company investment cycle, along with regulatory and procurement processes that can slow the pace of change. Participants highlighted the challenge of identifying internal champions within water companies— especially those with the necessary budgetary control, as well as limited access to key data, which can make informed decision-making more difficult. Despite these obstacles, opportunities were identified in collaboration and mentorship, particularly with water companies, as well as in field trials supported by new regulations e.g. SuDS.

Following the breakout sessions, participants gathered in a fishbowl format to build on these discussions. Panellists from the breakout groups shared insights on challenges such as the rapid exhaustion of available funding and the critical need for continued support, particularly in commercialisation and intellectual property. The conversation explored how engaging with the private sector—through private investment and procurement partnerships with industries that water companies contract—could help overcome some barriers to adoption. As participants swapped in and out of the panel, they expanded on key issues such as short project timelines, resistance to change within companies, and the need for better collaboration between early-stage innovators and/or smaller companies trying to break into the water sector to drive innovation across the sector. The session concluded with a collective call for more strategic funding, improved industry-wide collaboration, and a clearer pathway for innovation adoption.

Attendees taking part in a Fishbowl discussion

Keynote: Kenny Ewan

In the second session, we were thrilled to welcome Kenny Ewan, Director at Nesta’s Mission Studio and founder of Wefarm, the world’s largest farming network with over 3.5 million users by 2022. Kenny, who grew Wefarm from a one-person operation to a company of over 120 employees and secured more than $35 million in venture capital, shared his invaluable insights during a fireside chat Q&A.

Key takeaways from his session included:

• The importance of focus, with Kenny emphasising the need to avoid distractions that can dilute a project’s core value.
• On funding, he stressed the necessity of telling a compelling story to attract investors, drawing on his experience raising significant venture capital. He also highlighted the importance of demonstrating small successes, which can build credibility and attract larger investments.
  Kenny underscored that execution is more critical than the idea itself, as strong execution drives success.
• He advised participants not to be overly concerned about intellectual property (IP); rather, it’s essential to prioritise implementation and be as open as feasibly possible.
• He was candid about the challenges of fundraising, noting that clear financial projections are essential, even if they’re hypothetical.
• Lastly, he shared insights into user understanding, advising that it’s not enough to simply ask users for feedback—observing their behaviour can provide much deeper insights into their needs and preferences.

Kenny Ewan, Director of Nesta’s Mission Studio in conversation with Caroline Pradier, Programme Manager at Challenge Works

The Future of the Water Discovery Challenge

The final session provided a space for participants to give feedback on the delivery of the Water Discovery Challenge. Attendees appreciated the autonomy given over their projects but expressed a desire for more non-financial support, particularly in intellectual property and market access. There was also a discussion about the need for better access to angel investors, given that venture capitalists often misunderstand the water sector. Collaborative challenges between startups and universities were raised, along with regulatory hurdles, particularly in wastewater. Participants suggested improvements such as video pitches for applications, enhanced data access, and more tailored support during the winner’s phase.

So, what’s next for the Water Discovery Challenge? Ofwat has indicated, in its consultation paper, that the Water Discovery Challenge will run again in some form, following the success of its inaugural iteration. This could include a change in structure to sector participation and funding model. The achievements of this competition highlight the importance of providing funding and enhanced access for external innovators as well as ideas from different sectors, to enrich the water industry. As we reflect on the lessons learned and the successes achieved, we look forward to the exciting possibilities that lie ahead for the future of the Water Discovery Challenge.

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