Kelowna, BC-based cleantech startup RainStick Shower has closed $2.6 million CAD in new financing as it looks to scale its water-saving shower system.
RainStick’s latest round, classified as “seed-plus,” was led by Raven Indigenous Capital Partners, with support from the Crown corporation Business Development Bank of Canada’s Thrive Lab, Silicon Valley-based BuildTech VC, and angel investors.
“RainStick’s innovative technology is crucial in the context of emerging water and energy scarcity.”
Stephen Nairne, Raven Indigenous Capital Partners
The funding follows a period of growth for RainStick. Earlier this year, the startup’s product was named one of TIME’s Best Inventions of 2023, making it one of the few Canadian tech products to make the list. The startup has developed a shower system aimed at reducing water consumption. Unlike a conventional shower, which sends water down the drain, RainStick’s technology captures, circulates, and sanitizes grid-supplied water in real time.
The water cleaning process involves three stages: water passes through a screen that catches large debris such as hair; the system then adds a small amount of fresh hot water; and a high intensity ultraviolet light-emitting diode disinfects water from bacteria and viruses.
On its website, RainStick says its product can reduce the water usage of a 10-minute shower from an average of 100 litres to just 20, while still doubling water flow. The startup says flow rates are often restricted to between 5.7 and 6.8 L per minute, but its flow rate totals 11.4 L per minute while drawing just under 2 L per minute from the home’s water supply.
RainStick was founded in 2019 by CEO Alisha McFetridge and her husband and CTO Sean McFetridge. The startup closed $1 million in seed financing in 2021 and $820,000 in 2022. This latest round brings the company’s total funding to $4.5 million, McFetridge told BetaKit in an emailed statement.
The startup began selling its device in February 2023, and in a statement announcing its latest fundraise, said it has tracked 200 percent year-over-year growth in revenue between June 2023 and May 2024. McFetridge declined to disclose how many devices have been sold to date, but noted the product is available in North America, Australia, and New Zealand.
RELATED: RainStick Shower, HyIvy Health awarded collective $100,000 at Winter 2020 Fierce Founders Bootcamp
“RainStick’s innovative technology is crucial in the context of emerging water and energy scarcity,” Stephen Nairne, chief investment officer at Raven Indigenous Capital Partners, said in a statement. “We are thrilled to support the next phase of RainStick’s growth and impact, as it broadens its footprint across North America.”
RainStick plans to use the new funding to expand across Canada and the United States. McFetridge said this includes building out RainStick’s sales and customer success teams within North America and growing its distribution channels in regions with water scarcity, high water and energy costs, and government mandates to reduce consumption.
“RainStick has already secured partnerships with San Francisco through its involvement with the YesSF program, as well as the city of New Orleans on 13 upcoming developments through its partnership with Finance New Orleans,” she added.
RainStick is looking to position its product as essential for consumers facing a tougher economy and changing climate. The startup claims its product can lead to an 80-percent reduction in shower-related water and energy costs for households, and it plans to use some of the new capital to launch a more cost-effective design of its product in early 2025. It currently retails for $4,995 USD. McFetridge added this new launch will reduce the product’s initial upfront costs for the consumer.
“Facing a high cost of living and a growing climate crisis, with increasing drought and fires, Canadians are looking for cost-effective solutions to minimize their impact and manage their resources,” McFetridge added.
Feature image courtesy RainStick via Facebook.