The Brief
Discuvr was asked to carry out a full review, including:
• A deep dive into the company’s core technology
• Intellectual property (IP) review and prior art search
• Financial assessment and performance analysis
Water Desalination due diligence project
€10M+ Investment Safeguarded
Advised VC firm to avoid high-risk technology investment
Comprehensive Due Diligence
Combined technical, IP, and financial analysis for full risk review
Regulatory & Market Risk Analysis
Identified licensing and competitive barriers in key markets
Strategic Capital Reallocation
Guided reinvestment toward stronger opportunities
Our client, a leading European venture capital firm, was considering a significant investment in a water desalination startup. The opportunity appeared attractive: a strong founding team, technology aimed at tackling global freshwater scarcity, and a mission aligned with sustainable impact. Before committing, the client engaged Discuvr to conduct comprehensive technical and commercial due diligence.
what we did
Discuvr’s due diligence process combined technical expertise, IP analysis, and financial modelling:
• Technology Review: We confirmed that the company’s initial concept was promising and mission-driven. However, during our review, we discovered that the technology under development had diverged significantly from what was originally proposed, and was no longer aligned with the company’s existing IP protection.
• IP & Competitive Landscape: Our prior art search revealed a critical risk: a wellestablished U.S. competitor was already selling a near identical product, backed by multiple patents. This created a major barrier to the startup’s freedom to operate.
• Regulatory & Market Risks: We found the business model relied heavily on obtaining permits in certain jurisdictions a process with uncertain timelines and outcomes.
• Financial Analysis: The numbers did not support the business case. Freshwater output was much lower than expected, while financial payback was projected to take significantly longer than originally outlined.
Technology Review
We confirmed that the company’s initial concept was promising and mission-driven. However, during our review, we discovered that the technology under development had diverged significantly from what was originally proposed, and was no longer aligned with the company’s existing IP protection.
IP & Competitive Landscape
Our prior art search revealed a critical risk: a well-established U.S. competitor was already selling a near identical product, backed by multiple patents. This created a major barrier to the startup’s freedom to operate.
Regulatory & Market Risks
We found the business model relied heavily on obtaining permits in certain jurisdictions a process with uncertain timelines and outcomes.
Financial Analysis
The numbers did not support the business case. Freshwater output was much lower than expected, while financial payback was projected to take significantly longer than originally outlined.
outcome
Based on Discuvr’s findings, the VC firm decided not to proceed with the investment. By avoiding a deal with high technical, regulatory, and financial risks, the client saved themselves over €10 million, which they were able to redirect into opportunities with stronger competitive positioning and greater long-term potential.
key takeaway
Early-stage technologies can be compelling, but misalignment between IP protection, technological reality, and financial feasibility can expose investors to significant risk. Rigorous due diligence helps ensure capital is allocated to the highest-potential opportunities.