Help us unlock the black box of water – together, we can stop water damage before it happens!

Water is the source of life on Earth. We take it for granted that water is always available from our taps whenever we need it. But how much water actually flows from our taps every day, and what kind of damage can leaks or burst pipes cause?

On average, water damage is only discovered after 48 hours – and the later it is detected, the more expensive it becomes. In Germany alone, there were more than 1.1 million water damage incidents in 2024, causing over €4.4 billion in remediation costs – a figure that continues to rise as the building stock ages.

At hydrop systems, we have the solution: Our hydropmeter is a smart add-on device that can be installed on existing water meters in just 2 minutes and without professional assistance. Using our proprietary AI models, which replace the human eye in meter reading, we can accurately read a wide variety of water meter types. This enables us to capture consumption data down to the second, make it transparently available in our app, and instantly detect anomalies. The hardware is manufactured in Southern Germany by experienced partners who are ready to scale production to higher volumes.

Revenue is generated not only through the sale of the hydropmeter itself, but also through the accompanying hydrop protect app. The app provides customers with early warnings when water damage is detected, as well as highly detailed, high-resolution monitoring of water consumption – fully integrable into existing smart home and building management systems. Our subscription model ensures recurring long-term revenue.

The hydropmeter has only been promoted on social media since July 2025 and has already been sold more than 700 times through our own online store – including 135 units sold in January 2026 alone. We are now seeking capital to scale the business and finance a larger production run, enabling us to improve margins and expand our market reach.

Together with you, we will make hydrop systems profitable by 2027 – and then scale internationally.

hydrop systems was founded in May 2024 by Katrin Kreidel, Raimund Koop, and Moritz Emberger. Prior to founding the company, the team had already worked together through the EXIST and Junge Innovatoren startup grant programs, where the idea for hydrop systems was born. The three founders' areas of expertise complement each other to form a strong overall team, further strengthened and driven by their shared vision. This enabled the journey from concept and development to market launch within just 14 months.

We make water consumption transparent, enabling cost control as well as the early detection of damage and other unnoticed water usage. The hydropmeter is an add-on device for the optical reading of water meters, which are typically installed in every building. The device can be installed in residential, commercial, and industrial buildings without professional assistance in just a few minutes and digitizes water consumption data. Water flow is measured up to once per second, enabling detailed analyses and the detection of anomalies in consumption patterns.

In the hydrop app (available for iOS and Android), the building’s real-time water consumption is displayed in a clear and intuitive format. The data can also be exported to other applications, and integration with existing smart home platforms (e.g., Home Assistant, ioBroker) and building management systems (e.g., Siemens Desigo) is supported. In spring 2026, the additional hydrop Protect feature will be launched within the app. This feature sends push notifications whenever water damage or unusual consumption patterns are detected. As a result, damage and unwanted water usage can be identified immediately, even when nobody is on-site.

The hydropmeter is already being used to monitor water consumption in private homes, vacation rentals, commercial properties, and production environments in industry and research facilities. Its high measurement frequency, ease of installation, and broad compatibility are the key factors that distinguish the hydropmeter from competing solutions and remain unmatched in the market today.

There is a wide variety of analog and digital meters on the market, as no standards or regulations exist for how measurement data must be displayed on a meter dial. This diversity has resulted in a highly fragmented market for the digitalization of water consumption data: each manufacturer offers its own proprietary systems, most of which rely on outdated technology and do not allow seamless integration with modern smart home or building management software.

With the hydropmeter, hydrop systems has developed a technology that replaces the human eye and can capture and analyze water consumption data at high frequency on virtually any water meter, regardless of market fragmentation. To achieve this, we have developed highly optimized proprietary AI models capable of performing complex tasks such as the optical reading of hundreds of different water meter types directly on an edge device like the hydropmeter.

In addition to our proprietary AI model architectures, another key advantage is the significant data lead that hydrop systems has built through its broad and diverse customer base. Every additional dataset makes the system smarter and further expands the range of applications for our solution.

For its innovation in this sector, hydrop systems was recognized as an AI Champion of Baden-Württemberg by the state's Ministry of Economic Affairs.

While software and AI development are carried out entirely in-house, hydrop systems collaborates with experienced partners across Southern Germany for the development of electronics and hardware. Together, all prerequisites for scaling have been established and production capacities have already been secured.

With the hydropmeter, hydrop systems is currently targeting the rapidly growing smart home market, which serves as an ideal entry market with an annual growth rate of 9.5%. Sales are generated through homeowners and landlords via our own online store as well as through reseller partnerships. Within Europe, we address a market volume of €3.5 billion in the smart energy monitoring sector. The introduction of the hydrop protect app expands our reach into the insurance industry, enabling the deployment of the hydropmeter across existing building portfolios. Since insurers already face significant losses from late-detected water damage in aging buildings, insurance companies represent a highly attractive customer segment. This expands our addressable market potential to €38 billion in Europe alone.

In addition, the mid-term expansion of our product portfolio opens up a wide range of industrial applications, significantly multiplying our market potential. In particular, increasing reporting requirements and sustainability targets are driving digitalization across industries, making easy-to-integrate solutions such as those offered by hydrop systems increasingly valuable and relevant.

Unlike competing solutions, hydrop systems pursues a technologically superior approach through the AI-based capture of consumption data. This makes installation incredibly simple and allows any user to complete it independently in just two minutes. At the same time, the solution is independent of the water piping infrastructure and only needs to be mounted onto the existing water meter, making the hydropmeter significantly more affordable than invasive systems. Compared to ultrasonic and thermal sensor technologies, our solution also provides substantially higher accuracy and can precisely determine water flow volumes.

For future sales to insurance companies, the combination of an attractive price point, additional value for policyholders through continuous monitoring, and simple installation plays a crucial role in making the product viable for the insurance market.

hydrop systems benefits from a substantial lead in high-resolution water consumption data. This enables deep consumption analytics and leak detection based on a single measurement point within a building. At the same time, the chosen technological approach has the potential to be extended to all analog and digital metering devices, ultimately replacing the human eye in the reading and digitization of consumption processes worldwide.

The hydropmeter is currently sold through our own online store at a one-time purchase price of €149 and includes the free basic version of the app, in which meter readings are transmitted once per hour. Starting next year, the hydrop protect app will be offered as a subscription for €1.99 per month, providing real-time monitoring and instant alerts.

As the next step, the hydropmeter will be offered through smart home resellers, allowing them to complement their product portfolios with water monitoring capabilities. Initial partnerships are already in place (including Z-Waves and balkonspeicher.de), while additional partnerships are currently in advanced negotiations.

For its future growth strategy, hydrop systems is working with the insurance industry, which can significantly reduce remediation costs through the early detection of water damage and therefore has a strong interest in solutions that are easy to install. These partnerships enable an efficient expansion of the business model into the B2B sector and provide the foundation for rapidly increasing sales volumes.

hydrop systems has already received numerous awards and recognitions, most recently the Digital Innovation Startup Competition Award, the Undine Award of the Josef Wund Foundation, and the Sustainability Award of CyberForum.

Before the company was founded, the team was supported by the EXIST Startup Grant and the Junge Innovatoren program of the state of Baden-Württemberg, while also participating in several accelerator programs (including NXTGN, AXEL, beVisioneers, and Impact Hub). Following the company's incorporation, the first pilot projects were launched quickly, before the hydropmeter entered the market in 2025. The first production batch sold out within just a few months, and the next step is to scale both product development and sales. We are particularly proud of our Made in Germany quality: the hydropmeter is manufactured entirely in Southern Germany by our experienced production partners.

Having successfully achieved both Proof of Concept and Proof of Market, hydrop systems is now ready to scale product sales. To accomplish this, we are seeking a total of €600,000 to take the company beyond profitability and into international growth. The funds will be used in the following three areas:

• Product: Increasing product margins through further development and economies of scale
• Development: Enabling international expansion by extending the applications and capabilities of the existing product
• Marketing & Sales: Expanding market reach through reseller partnerships and the development of a dedicated B2B sales strategy

Upon completion of the funding round, we plan to commission a production run of 2,000 units, increasing the product margin to €40 per unit. By developing a fully proprietary electronics platform, we expect to further increase margins to 65% by the end of the year. On the software side, we continuously improve our meter-reading algorithms, enabling future compatibility with digital water meters and large-scale water meters, making the solution even easier to scale.

We have already established our first reseller partnerships, and larger production volumes will unlock additional opportunities that we intend to capitalize on throughout 2026. Expansion into the B2B market will be supported by pilot projects in 2026, followed by full-scale growth beginning in 2027.

1. Ready to scale: Both Proof of Concept and Proof of Market have already been achieved. The hydropmeter has been marketed since July 2025 and has already been sold nearly 1,000 times – including 135 units within a single month, with sales continuing to grow.
2. Perfect timing: The smart home market is growing rapidly, the building stock is aging, the number of water damage incidents is increasing every year, and insurance companies are suffering losses due to water damage claims. Together, we can capitalize on this market opportunity now.
3. Unlocking potential: The team has demonstrated exceptional execution speed, bringing the hydropmeter from concept to market readiness in less than a year and successfully establishing it in the market. Through scaling, we expect to reach profitability in 2027 while addressing an international market opportunity worth €38 billion.
4. Building on proven success: Our hydropmeter has already successfully detected water damage at an early stage, significantly reducing the resulting remediation costs.

Dependency on electronic components: To mitigate this risk, hydrop systems has established a long-term partnership with Würth Elektronik, which manufactures components at multiple European locations and can therefore maintain resilient and reliable production even during crises.

International scaling: Different technical conditions in international markets may create challenges for the installation of the hydropmeter, potentially limiting its ease of use. To address this, hydrop systems plans to develop a solution next year that enables data transmission via NB-IoT (cellular connectivity), reducing dependence on Wi-Fi networks. This will also significantly simplify industrial deployments.

Hardware business models are capital-intensive and carry risks: For this reason, hydrop systems has outsourced production to experienced manufacturing partners with whom the company has already worked for more than a year. These partners are well suited for scaling and can support the required production volumes even several years into the future. If individual components become unavailable, they can be replaced without major difficulties. Increasing production and sales volumes will further improve margins.

Lack of patent protection: hydrop systems protects itself against imitation primarily through continuous innovation, particularly in software, which generally cannot be protected by patents. At the same time, ongoing hardware development offers opportunities for patent protection. For example, future mounting mechanisms for installing the hydropmeter on water meters located within wall cavities could potentially be patented.

Digital water meters: First, water utilities determine which meter is installed and generally choose low-cost analog meters that are unable to transmit data at high frequency. In addition, data privacy regulations often prevent consumers from accessing detailed meter data. Even in the event of a pipe burst, information frequently cannot be assigned or communicated directly to the consumer. At the same time, the hydropmeter can also read the display of a digital water meter, enabling high-frequency data transmission and advanced data analytics regardless of the meter type.

No Wi-Fi or power supply in the basement: hydrop systems has collected data showing that the majority of basements (approximately 80–85%) have both electrical power and Wi-Fi coverage. This data was gathered from the target customer group through surveys completed by around 1,000 respondents per month. In addition, a further product enhancement is already under development to enable future data transmission via cellular networks.

Dependence on political and regulatory frameworks: At present, regulations only have a positive impact on hydropmeter sales. For example, the EU Water Resilience Strategy calls for the protection of water resources and the intelligent management of water consumption. Similar objectives are reflected in Germany’s National Water Strategy. However, hydrop systems has already acquired customers independently of these regulations, clearly demonstrating that while regulatory frameworks are beneficial, they are not essential to the viability of the business model.

Limited customer acceptance due to product pricing: The hydropmeter is priced within the range of comparable products and is generally more affordable than competing solutions while offering faster and easier installation. The growing number of customers demonstrates a clear willingness to pay for the product.

The product serves only a small niche market: The underlying technology can be expanded to other analog and digital metering devices. Furthermore, no comparable technology currently exists for water meters, meaning that even within this niche, a profitable business can be built. In addition, leak detection is not a niche market but a growing one, driven by aging building stock and increasing maintenance backlogs.

The team is still young and relatively inexperienced: The team has already gained experience in both the startup ecosystem and the energy and water sectors. In its current configuration, the team successfully built the company from the ground up and brought it to market. Furthermore, existing and future investors, shareholders, and strategic partners provide additional expertise and industry knowledge where needed.

B2C marketing is expensive: At present, hydrop systems has customer acquisition costs of approximately €15, which are expected to decrease further through targeted optimization strategies. At the same time, the company leverages a reseller strategy to benefit from partners’ networks and reach. In particular, the planned expansion into insurance and industrial markets will increasingly transform the product into a B2B offering.

hydrop systems GmbH was founded on May 8, 2024, in Stuttgart by Katrin Kreidel, Raimund Koop, and Moritz Emberger. Following the successful ideation and prototype development phase during the EXIST Startup Grant program, the team developed a shared vision to unlock the black box of water.

Within just one year, the hydropmeter evolved from an idea into a market-ready product. With more than 700 units sold since its market launch in July 2025, hydrop systems has already demonstrated strong market demand. Through this funding round, hydrop systems aims to scale sales into the industrial and insurance sectors, making water consumption transparent everywhere and giving water damage no chance.

How have you financed the company so far?

hydrop systems was supported for two years through the EXIST Startup Grant (Federal Ministry for Economic Affairs and Climate Action) and the Junge Innovatoren program (Ministry of Science, Research and the Arts Baden-Württemberg). We are currently financed through a convertible loan provided by four business angels.

What grants and funding programs have you received?

hydrop systems has received a total of €260,000 in public funding through programs such as the EXIST Startup Grant (Federal Ministry for Economic Affairs and Climate Action) and the Junge Innovatoren program (Ministry of Science, Research and the Arts Baden-Württemberg), each lasting one year. In addition, we received a 100% grant from CyberValley in 2024 amounting to €75,000, as well as an ongoing 60% grant from the Stuttgart Climate Innovation Fund totaling €170,000 and innovation vouchers with 50% funding amounting to €35,000.

Are you eligible for the INVEST funding program?

Yes. Due to the previous EXIST funding, hydrop systems has been officially recognized as eligible for the INVEST funding program.

Who manufactures the hydropmeter and who are your production partners?

We work exclusively with partners based in Germany. The electronics are manufactured by elbe electronic GmbH in Karlsruhe (Baden-Württemberg), while the housings are produced by Blueprint Advanced Manufacturing GmbH in Memmingerberg (Bavaria). We also work closely with Würth Elektronik eiSos GmbH & Co. KG in Waldenburg (Baden-Württemberg), which manufactures electronic components within Europe and therefore guarantees higher environmental standards and fair working conditions.
Our packaging solution is produced by PROSERVATION gGmbH using waste products from grain production.

How scalable is your production?

Since we manufacture through external partners, we can quickly increase production volumes. Combined with outsourced logistics, scaling is therefore straightforward and efficient.

How do you ensure compliance with environmental standards?

We manufacture exclusively in Germany, thereby ensuring compliance with legal standards. In addition, our partners elbe electronic and Würth Elektronik are successfully certified according to DIN EN ISO 14001.

Where do you see development needs within your team?

To successfully enter the B2B2C market in the long term, we plan to strengthen our team with an experienced sales professional and a marketing assistant.

Do digital water meters threaten your product (hydropmeter)?

No. Digital water meters are currently installed in only about 5% of all households and often provide only a digital display. Even if a smart meter technically supports data transmission, battery life, legal metrology requirements, and data protection regulations currently limit transmission rates to a maximum of one meter reading every two weeks. Furthermore, this information is generally not made available directly to consumers. We do not expect these conditions to improve significantly in the coming years. Therefore, we are working together with the German meter manufacturer Lorenz Meters (Lorenz GmbH & Co. KG in Schelklingen, Baden-Württemberg) on a solution that meets both the requirements of meter manufacturers and our value proposition for private households.

Is the hydropmeter compatible with other (smart home) systems?

The hydropmeter is compatible with Home Assistant and ioBroker, and additional integrations are currently under development. Thanks to our REST API, we are also well prepared for integration into B2B systems.

How is personal data protected?

For all data processing activities (e.g., collection, processing, and transmission), hydrop systems complies with all applicable legal requirements. Data is stored and processed exclusively in Germany. There is no system-based connection between customer data from the online store and hydropmeter serial numbers, meaning that water consumption data cannot be linked to an individual through our systems.
In addition, our company successfully passed an external security audit in the summer of 2024. More details can be found in our Privacy Policy.

Which technology is used for data transmission?

Data transmission is carried out via Wi-Fi. Other transmission technologies such as NB-IoT (cellular) or LoRa are technically feasible but would require further hardware development.

How is the hydropmeter powered?

To ensure timely detection of water damage, the hydropmeter requires an external power supply. It is powered via a USB-C cable (3 meters long), which is included in the package. The power adapter can simply be plugged into the nearest electrical outlet.

Can the hydropmeter prevent water damage?

The hydropmeter immediately alerts users in the event of water damage. This is particularly valuable when nobody is at home when the damage occurs or when a leak develops inside a wall and only becomes visible days later. Unfortunately, preventing water damage entirely is not possible with our current technology.

Can the hydropmeter also be used in apartments?

At present, the hydropmeter is only compatible with main household water meters. We are currently developing a solution for apartment water meters, which is planned for market launch in 2026.

Which water meters are compatible with the hydropmeter?

The hydropmeter is compatible with the most common residential water meter types. You can find a visual overview of compatible meter types here. We also offer a meter compatibility check here. If you are unsure, you can upload a photo of your water meter at the end of the compatibility check, and we will manually verify it for you.

How is the hydropmeter installed?

The hydropmeter can be installed by anyone in just two minutes. Simply attach the device to the water meter, connect the power supply, and connect the device to your Wi-Fi network.

What products do you offer?

We offer the hydropmeter, an optical reading unit for the existing household water meter that can be installed by any homeowner or resident without professional assistance. The hydropmeter is complemented by a basic version of our app, which displays hourly water consumption data and updates it once per hour. In addition, we will offer the hydrop protect app, providing real-time water consumption monitoring and instant alerts in the event of water damage.

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