HydroPoint Secures $19 Million in Private Equity Financing

HydroPoint Data Systems, provider of WeatherTRAK water management systems, announced the closing of $19 million in private equity financing. The company's series C round was led by RockPort Capital Partners, a venture capital firm specializing in energy, materials and process technologies, with strong support from Chrysalix Energy Venture Capital, a global venture capital firm focused on clean energy technologies.

The financing will expand the Petaluma, Calif.-based HydroPoint's sales and marketing of the WeatherTRAK solution to builders, corporate campuses, property managers and property owners throughout North America. As part of this transaction, Todd Wilson, General Partner, RockPort and Greg Sullivan, Managing Director, Chrysalix will join HydroPoint's Board of Directors.    

"We view HydroPoint as the clear leader in a market segment on the brink of exponential growth," said Todd Wilson. "Leveraging its proprietary technology and market presence, the Company offers a compelling economic value proposition to its large and growing customer base. Further, sustainable resource management is a strong and growing theme in corporate boardrooms and town hall meetings across the U.S. and Canada. HydroPoint will extend its leadership position because it provides an exceptional outdoor water management solution proven to eliminate systemic overwatering and runoff pollution at the point-of-use."    

Additional investors in HydroPoint's series C financing included Firelake Strategic Technology Fund; Monitor Ventures; Shea Ventures; and The Toro Co. Nineteen percent of California's electricity and 30 percent of its natural gas are consumed in meeting the state's water needs, according to the California Energy Commission. The billions of gallons of water WeatherTRAK customers will conserve in 2007 will help relieve dependence on the carbon-based fuels that contribute to global warming.

Further, the WeatherTRAK solution is designed to protect waterways by virtually eliminating the flow of fertilizers, pesticides and other contaminants from overwatered landscapes.  

Recognizing the critical importance of eliminating landscape water waste, public agencies are encouraging adoption of the WeatherTRAK smart irrigation system through rebates and other measures. More than 50 public agencies across the U.S. now offer rebate programs that cover up to half the cost of the product for residential and commercial applications. Additionally, new California legislation will mandate the use of smart controllers such as the WeatherTRAK system.

Customers are realizing significant return on investment results that have accelerated expansion of the WeatherTRAK solution across their portfolios. Companies including Shea Homes, Archstone-Smith, BRE Properties and Lockheed Martin selected WeatherTRAK to reduce water expenses and to protect property investments and local environments from landscape runoff pollution.    

"HydroPoint revolutionized landscape irrigation by offering proven water-saving technology combined with flexible professional services that enable our customers to focus on their core competencies while they achieve dramatic ROI through intelligent water management," said Chris Spain, president and CEO, HydroPoint. "This investment is a powerful acknowledgement of the size and momentum of our market. Over the last year, we quadrupled our subscriber base and grew revenue by 160 percent."