DURHAM – NALA Systems, a woman-owned startup in Durham developing a desalination technology, has raised an oversubscribed seed round of $700,000. The round was targeted at $600,000.

The oversubscribed round was led by Good Growth Capital with a first tranche closed in October 2020 that included support from NC-based angels at RTP Capital and Wilmington Angels for Local Entrepreneurs (WALE). Oval Park Capital completed the round as the sole investor in the second tranche.

“We appreciate the confidence that our investors have shown in the NALA team and we are excited to apply the seed capital toward producing prototype membranes that will be game-changing for the industry. Using our IP-protected materials and commercially-viable manufacturing process we will demonstrate the first competitive chlorine-tolerant reverse osmosis (RO) membrane in the market,” Sue Mecham, CEO, said in a statement.

Reverse osmosis is the primary water purification method.

“We have hit the ground running in 2021 to install pilot scale manufacturing equipment for continued R&D and building prototype membranes.” In an interview with WRAL TechWire, Mecham said technology provides a water purification method 40 percent less expensive than what is currently available.

She explained that current RO membranes are damaged by chlorine-based disinfectants and suffer from severe biofouling. NALA’s chlorine tolerant membranes are being developed as a biofouling-free drop-in replacement for existing RO systems that are used to purify and desalinate water. It also works on brackish water, tap water or any other source, Mecham said.

Biofouling is a tremendous cost-driver for RO operations and eliminating the problem is likely to spur further growth in a market that is at about $5 billion now. It has the potential to help address water shortages from the American West to the Sahara.

Mecham explains the whole process in this video:

Mecham said the seed money allows the six-person startup to move from a lab operation to pilot scale and it expects to have small-scale prototypes in the next six months. She added that the company expects to receive government grants on top of its seed round, but isn’t raising other additional money now.

“We’ll be going to full scale in about six months and will probably raise additional capital then,” Mecham said.

“We are thrilled to support Sue and the Nala Systems team in their efforts to commercialize novel water treatment technologies that could significantly reduce the costs of reverse osmosis water desalination. We are excited about this investment not only because of the large market opportunity but also the meaningful impact that these new technologies could have on the worsening global water crisis,” said Justin Wright-Eakes, managing partner at Oval Park
Capital.”

In an earlier interview with WRAL TechWire, Wright-Eakes noted that Oval Park Capital was focused not only on making money but also seeks projects with social value. “We met each other at the right time,” said Mecham.

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