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beyond subsistence farming

Driptech inc. designs and manufactures low cost drip irrigation for small farmers in developing countries.

Global Crisis
Inefficient use of water is a principal reason that hundreds of millions of subsistence farmers are stuck in the
cycle of poverty. For such a farmer to rise out of poverty, he needs a way to grow high value crops during the
dry season using only extremely limited water resources. page 2

Drip Irrigation Hope


Experts agree that the most water-efficient method of irrigation is drip irrigation, which delivers precise
amounts of water directly to the plants using a system of tubes and emitters. Unfortunately, technologically
advanced drip irrigation used in developed countries is too expensive and requires infrastructure unavailable to
the world’s poorest farmers. page 2

Current Efforts
International Development Enterprises has developed a low cost drip irrigation system which they have sold to
driptech  $
85,000 small farmers in India, but the system’s complexity is severely limiting widespread adoption. page 3

Our Solution
Driptech was developed at Stanford University by a group of MBA and graduate Engineering students. Our
innovative manufacturing system removes the complexity which has limited IDE’s success. page 3

Pilot Study
In Oct. 2008 we began a pilot study of our irrigation
product in southern India. Initial reactions have been
very favorable and demand is higher than expected.
We are now limited by the amount of tubing that
we can produce with our prototype manufacturing
system. page 4

Next Steps
Now that we’ve seen the demand for our product we
need to scale up our manufacturing capabilities. We
are raising funds to expand our production and fill
large orders for international distribution. page 4
Indian pilot study participants

product briefing www.driptechnologies.com page 1 of 6


Global Crisis
According to Frank Rijsberman, former Executive Director of the
International Water Management Institute (IWMI), “Six hundred
million subsistence farmers lack irrigation water and are mired in
poverty.” Furthermore, a full third of the world’s population suffers
from water scarcity.

Ethiopia is the perfect example of a country that suffers from


water scarcity, with a dry season that can last for up to 8 months.
According to the African Development Bank, around 27 million
economically active people are involved in agriculture in Ethiopia,
and 78% of them live on less than $2 a day. These farmers are stuck
in a cycle of poverty that barely permits their subsistence from year
to year. They need an efficient way to manage extremely limited
water resources.

Drip Irrigation Hope


“Ethiopia relies on agriculture for a large part of its GDP (44%).
Raising agricultural productivity is the most viable option for
reducing poverty, and irrigation development can enhance
driptech
Ethiopian subsistence farmer  $
economic development.” Akissa Bahri, head of International Water
Management Institute (IWMI) Africa Region

If these farmers could use their limited water resources


more efficiently they would be able to extend their growing
season, contributing to personal and local food security.
Drip irrigation is widely regarded as the most water
efficient method of growing crops. Unfortunately it is both
unaffordable and unavailable to the people who suffer most
from water scarcity. Providing low cost drip irrigation to
farmers in developing nations strikes at the root causes of
food insecurity and rural poverty.

Unfortunately, technologically advanced and water-efficient


drip irrigation used in developed countries is too expensive
and requires infrastructure unavailable to the world’s poorest
farmers. Commercial systems require high levels of water
pressure and filtration that are simply unrealistic for small Drip irrigation precision water placement
farmers who may not have clean water or electricity.

product briefing www.driptechnologies.com page 2 of 6


Current Efforts
The main organization which is addressing the issue of low
cost drip irrigation is International Development Enterprises
(IDE). Over the last decade IDE has developed a system
which they have sold to 85,000 small farmers in India. In
order to replace the expensive emitters found in commercial
systems, IDE relies on a microtube inserted at each watering
point. These microtubes make the system difficult to install
and maintain, severely limiting widespread adoption.
Despite efforts there are 100 million small farmers in India
and 600 million worldwide that have not been reached with
Discarded IDE system
an appropriate solution.

Our Solution
Driptech was developed at Stanford University by a group of MBA and graduate Engineering students. Our low
cost drip irrigation improves upon the current IDE product by eliminating all microtube emitters. This removes
the complexity which has limited farmer adoption. Our system employs a proprietary method to produce uniform
holes in irrigation tubing, resulting in the most cost effective and easily used product for small farmers in
driptech  $
developing nations. Total part count and installation time are reduced by over 80%.

Driptech system in use in India

A $5 Family Survival Kit will produce enough vegetables to drastically improve a family’s diet, and a $20 Cash
Crop Kit enables a farmer to greatly increase his annual income by growing vegetables in the dry season. IDE
has supported the founding of Driptech as a separate entity to design and manufacture drip irrigation.

product briefing www.driptechnologies.com page 3 of 6


Pilot Study
We are currently running a pilot study in
India between Oct. ‘08 - Mar. ‘09 to prove
the new product’s effectiveness in the hands
of poor farmers. This will confirm our lab
tests showing uniform water distribution, test
the consistency of our manufacturing system,
and demonstrate market acceptance. This
pilot study is designed to target the principal
technical risks of our system, and our full time
Pilot Study Manager is working directly with
end-users to obtain market and user feedback. Pilot study participants

The initial response has been overwhelming. After seeing our demonstration, farmers want to test larger fields
and more fields than we had anticipated. During installation, the farmer’s friends and neighbors often ask us
where they can purchase our product for themselves. Interested parties include irrigation experts and novices
alike, and we have already used up our initial supply of tubing.

Next Steps
driptech  $
Now that we’ve seen the demand for our product we need to scale up our manufacturing capabilities. This
requires funding for necessary materials, engineering, and living expenses. By September 2009 we will
produce enough drip irrigation to start 1,000 farmers on the path out of poverty, and will be working with major
international organizations to distribute this product globally.

Local Indian farmers gather for installation Peter with pilot tubing

product briefing www.driptechnologies.com page 4 of 6


Vision
Our fundamental belief is that by treating the poor as customers rather than aid recipients we prevent ourselves
from engaging in unsustainable activities as a company. Only products that fulfill a real need will be accepted by
the market. As a sustainable social venture
providing tangible products, our efficacy is
measured by the sale and direct impact of
these products.

Our goal is to attract over 1 million


customers within five years. Out of these
customers, 95% will have recovered at least
2 times their initial investment within the Children excited by driptech system
first season. Many will produce 5-10 times
their investment in high value vegetable crops. We can measure this by gathering agricultural yield data from
our customers upon installation and after one year of operation. Because our customers vary greatly in terms
of income and land ownership, return on investment is the most meaningful measurement of success. With as
little as $5 a farmer can invest in a Family Nutrition Kit which will irrigate 20 square meters and pay itself back
within a season.

driptech  $
As demand increases in different countries around the world, we are committed to setting up local manufacturing
to create jobs and eliminate unnecessary shipping expenses. When possible we will partner with established
organizations in order to leverage existing distribution networks. These partners will include microfinance
organizations, NGOs, and for-profit agricultural input suppliers.

Small farmers in India discussing the driptech system

product briefing www.driptechnologies.com page 5 of 6


Team
Peter Frykman - CEO
Peter received his Bachelor’s and Master’s degrees in
Mechanical Engineering from Stanford University. His focus is on
design and manufacturing for extreme affordability.

Nick Leindecker - CTO


Nick received his Bachelor’s in Physics and Master’s in
Nick Leindecker and Peter Frykman
Electrical Engineering from Stanford University. His expertise
in mechatronics has been critical to development of our
automated manufacturing system.

Anna Petersons - Pilot Study Manager


Anna is a Master’s candidate in International Agricultural
Development at UC Davis. Her experience with rural farming in the
Peace Corps helped prepare her to run our Pilot Study in India.
driptech  $ Anna Petersons
Advisors
Paul Polak - Founder of International Development Enterprises
Affordable Drip Irrigation, Appropriate Technologies Design and Distribution
Frank Rijsberman - Former Director General of the International Water Management Institute
Water Research and Expertise
James Patell - Herbert Hoover Professor of Public and Private Management, Stanford University
Entrepreneurial Design for Extreme Affordability
Scott Petry - Founder of Postini, now owned by Google
Entrepreneurship and Fundraising
Susan Mac Cormac – Partner, Morrison Foerster
Legal Services and Social Venture Expertise

Contact
Peter Frykman at pfrykman@driptechnologies.com or
(650) 387-0295 for more information.

Ease of installation

product briefing www.driptechnologies.com page 6 of 6

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