The beverage industry is witnessing two major trends: the surge in the home-brewed carbonated water market and the steady growth in the adoption of reusable bottles. Consumers are increasingly opting for healthier beverage options and the convenience of carbonating at home, while environmental concerns are driving them away from single-use plastics. AirflowA newly launched startup sits at the intersection of these trends with its innovative Aer1 system. This portable carbonation device is designed to turn purified water into sparkling water on the go. The system’s key feature is its proprietary bottle cap, which contains refillable carbon capsules that can carbonate four bottles of water. Operating on a circular economy model, Aerflo has implemented a unique refill system. Customers simply return their empty capsules to the company by mail and receive a full replacement. This on-demand approach eliminates the need for an ongoing subscription. The initial cost to the consumer is $99, which includes the Aer1 device, Aer1 bottle, and 13 carbon capsules. After that, customers only pay for replacement capsules as needed when returning empty capsules.
Alley surveillance Meet Aerflo Co-CEO and Co-Founder John Topp and buzz wiggins To learn more about the business, the company’s strategic plans, recent funding rounds, and much more…
Who were your investors and how much money did you raise?
The funds raised were seed and seed + pre-seed/seed. We raised over $10 million in venture capital, and the rounds were as follows: Lehrer Hippo and Torch CapitalWith additional investment Closed Loop Ventures Group, Amity Supply, Good Friends, SWAT Equity Partners, WISE Ventures, Bluestein Ventures, Riverpark Venturesand Palm Tree CrewAnd many more.
Please tell us about a product or service provided by Aerflo.
Aerflo is the first portable carbonation device that instantly turns any purified water into sparkling water, anytime, anywhere. Aerflo’s Aer1 system comes with the Aer1 bottle, the Aer1 device, and reusable carbon capsules, providing a refreshing and simple solution for carbonation on the go. Just fill the Aer1 bottle with water, add the capsule, and tap to dispense.
Aerflo is also uniquely powered by a circular, on-demand CO2 refill model that is better for people and the planet. The result is hassle-free refreshment. When it’s time to refill Aerflo’s carbon capsules (one capsule makes about four 16-ounce bottles of sparkling water), simply mail in the empty capsules and a replacement will arrive.
What prompted you to start Airflow?
We saw our entire peer group carrying reusable bottles, and we started thinking about it as a platform. How can we apply beverage customization to the bottle? We quickly targeted carbonation. The single most popular beverage in the US, the only portable/suitable solution for active lifestyles, is disposable. We knew that the solution, without compromise, was a circular, zero-waste model.
We were inspired by this concept: adding carbonation to the bottle you carry around every day. The first thing we did was build a prototype to prove that this was remotely possible. Mostly with an industrial design spin inspired by beautiful, durable analog technology like cameras from the 80s. It was very important to us that it be something that consumers would be proud to carry around. Then it was a checklist of things to execute on this concept. We knew it would be hard (it might not be that hard) but we liked what we saw.
What makes Airflow different?
Until now, the love of sparkling water has meant stocking up on single-use cans or making inconvenient trips to the store to replace bulky containers. While circularity is a hot topic, there is little real distribution that meets customer demand. We saw an opportunity to align what is best for our customers and the planet.
No one else or anything else does what we do because we’ve redesigned every aspect of the sparkling water experience to minimize waste and maximize consumer convenience. We’ve also built a state-of-the-art refill processing facility that supports our circular refill model, including containers and capsules that fit the standard for shipping via USPS. In fact, we’re currently the only company in the industry that ships reusable small-capsules via the postal service.
What market does Aerflo target and what is its market size?
The global sparkling water market, currently valued at $43 billion, is expected to reach $108.35 billion by 2032. However, there is a clear need for innovative and sustainable solutions. Aerflo is for those who have succumbed to purchasing single-serving sparkling water because it was the only convenient option, or for those who want refreshing carbonation but settle for purified water because it is not an option.
What is your business model?
Our business model is centered around sustainability and convenience through an on-demand circular refill system. The Aer1 system ($99) includes the Aer1 bottle, the Aer1 device, and 13 reusable carbon capsules. Each capsule makes four 16-ounce bottles of sparkling water and is refilled at our own and operated processing facility. Refills are not subscription-based. When you return an empty bottle, the exchange program is automatically initiated. Never in stock, always on-demand. Our products have a longer lifespan and serve as a cost-effective and environmentally friendly alternative to single-use plastic bottles.
How was the funding process?
Simply put, it takes patience, luck, and a willingness to ask for favors. From everyone.
Fundraising is hard work and requires persistence. As any entrepreneur will tell you, there are a lot of rejections. The important thing is to find a way to move forward through the rejections. Also, it is important to have a group of investors (e.g. Kaitlyn Strandberg) believed in us deeply from the beginning and opened the way for others to join us.
What was the biggest challenge you faced while raising capital?
The things that make our business unique, like building refill facilities or designing complex hardware from scratch, are different and require significant up-front capital expenditures. It’s a different story than what many consumer VCs are used to, and we’re grateful to those who believed in us.
What factors in your business prompted investors to write checks?
Our circular model is the driving force of our company. It allows us to make meaningful sustainability commitments. One Aerflo capsule will replace over 330 cans over its lifespan, which is equivalent to 74 kg of CO2e. This is increasingly important to many investors, including Closed Loop, a leading investment firm for circular economy companies.
Second, investors appreciate that we are not afraid of doing something we have never done before or something that is difficult or really hard. Our dedication always motivates us.
What advice would you give to New York businesses that haven’t invested new capital in banks?
First, there is no such thing as rejection. Accept rejection, figure out what you need to fix, learn, and adjust from it, and prepare for the next rejection.
Second, being sloppy is not a bad thing. There is no direct correlation between the amount paid and the quality of work. Many of our best, highest quality work has come when we were forced to do sloppy work. Always be prepared to do the work yourself.
What do you see happening to the company in the near future?
We’ve started pre-orders, so our focus right now is on fulfillment, which will start in late September. We’re learning about our customers (in one day) and applying that knowledge right away. We’re looking forward to some retail partnerships that will be rolling out this fall.
Nevertheless, R&D never sleeps.
What’s your favorite summer vacation spot in or around the city?
man: Beach volleyball court at Pier 25, located north of the nets.
buzz: Beach volleyball court at Pier 25, located south of the net.
