Meet
Manuela Zoninsein
Investment Opportunity : Seed stage
At a Glance
Company Kadeya
Year Created 2020
Mission Replace single-use containers of water with glass bottles that we sanitize and refill.
Target Markets/Audience Segments include construction, industrial, manufacturing, military (starting with Air Force), airports (starting with ground crew), entertainment (stadiums, arenas, & film studios) with a strong focus on the Heartland.
Website kadeya.com
Background:
What makes Manuela unique?
As a serial climate entrepreneur, Manuela Zoninsein has launched two businesses in the agritech space, one a data service in China, which was acquired by a partner, and one in Brazil, now the country’s largest online marketplace for smallholder farmers. Before going into business, Manuela served as a correspondent in China, where she lived for eight years. She moved to Beijing with a Princeton-in-Asia Fellowship in 2007 and reported for Newsweek and The Engineering News-Record, covering environment, technology, infrastructure, and transportation during the cleantech revolution. As an angel, Manuela has invested in over 30 companies led by under-represented founders focused on sustainability. Manuela holds an MBA from MIT-Sloan, an MSc from the University of Oxford, and a BA from Harvard University. She attended Evanston Township High School and is a proud Brazilian immigrant fluent in Mandarin-Chinese, Spanish, and Portuguese.
“Because I’m building the future, I would rather be judged “like a man” - based on the potential of what I’m building and what I’m capable of - rather than what I have built.”
The Problem:
What Manuela is trying to solve
Kadeya is solving the global issue of plastic waste by saying goodbye to single-use plastics and saying hello to the future of employee hydration that’s better for people and the planet. When CEO and Founder, Manuela, was living in China, she learned to carry around reusable tea jars like the local citizens. However, when she left China, eight years later, people were instead carrying single use plastic tea bottles. She quickly realized that this major social change was not globally sustainable and began asking herself, "What did single use do so well that allowed for this rapid cultural shift in China? And would it be possible to make that rapid change in the other direction?” While at business school, Maneula worked to “know her enemy” in order to mitigate the use of single-use plastics. From there, Kadeya was born. To solve the issue of single-use plastic, Kadeya’s patent-pending kiosk conveniently dispenses beverages, like a vending machine, but unlike a vending machine, Kadeya’s kiosk takes bottles back to wash, sanitize, inspect, and refill with filtered water to be used again - eliminating single-use beverage containers for all types of beverages.
Q&A
We sat down with Manuela to talk with her about how she got her start as a founder, what her seed funding stage has been like, and how GET Cities has helped.
What inspired you to become an entrepreneur?
I guess you could say I’ve always been an entrepreneur, but I didn’t know the word. My parents are academics, so we weren’t talking about business and entrepreneurship in my household, but that being said I was always the first one to raise my hand when I noticed a problem and tried to find a solution. For example, in high school, I started a recycling club and created a student representative role on my high school’s board. I think that's the seed of entrepreneurship - you have to be aware of your environment to see potential problems. Then you need to be willing to do the work and get others to work with you to address the problem you’re trying to solve.
How did you come up with Kadeya?
While in business school, I came up with the idea of building bike sharing for bottles. People criticized my idea and gave me a list of things I needed to test to prove the business model would work. First, I was asked, “How are you going to get people to return the bottle?” After much research, I realized that if I link the bottle to a single user, people are more likely to return the bottles, which we are seeing with a 99% bottle return rate. Second, people asked, “How are you going to wash and sanitize the bottles?” When Covid-19 hit, I had time to do research and product development to design the world’s best bottle wash system as validated by many leaders in this space. We are confident we can deliver the cleanest bottle in the world - cleaner than a glass you’d get at a restaurant. The third big learning came a couple months after my family and I moved to Chicago in June 2021. That summer I took a sailing lesson on Lake Michigan. On my boat was a woman who worked at Gilbane, which is a major construction company. She loved Kadeya and she said, “I can get you onto a construction site tomorrow,” something I hadn’t heard when I was targeting white collar environments. That was a critical learning point for Kadeya’s success - finding where an autonomous reusable bottling and dispensing system can deliver the most value.
What milestones are you most proud of?
We delivered our Alpha 2.0 station to Gilbane’s downtown Indianapolis construction site in October 2022. Before even plugging in the unit, the Project Executive asked to buy the unit. That is a huge moment for any entrepreneur - your target customer wants to buy your product, even before he knows it works! I asked him, “Why do you want to buy it?” And he responded, “What am I going to do when Kadeya leaves? Go back to buying a bunch of single use bottles?” The aha moment in that conversation was realizing that for him, Kadeya was not solving for single-use plastics, but solving for logistics. It is a logistical headache to transport thousands of plastic water bottles onto a construction site. However, construction sites must have water available to ensure workers have access to water and are drinking enough water to stay hydrated while on the job. Since October 2022, we have gone from that one unit to many more units committed at that construction site in Indianapolis. Also, three other construction sites at Gilbane want to buy units so we are in the process of finalizing a company master wide service agreement with Gilbane. To go from deploying one unit in October 2022 to having the company buy our entire system has been amazing. Other milestones include winning two contracts from the Air Force, which has been a huge seal of approval and validation of what we are doing, and having Evergreen Climate Innovations write our first institutional check. Since then, we’ve booked nearly 40 units to be deployed in the next year, exceeding sales targets by 75%.
What was the most challenging aspect of starting your own company?
Fundraising. It takes a really long time and a huge amount of confidence and focus to not get distracted or demoralized. It also forces Kadeya and me to do a lot with just a little, which we’re good at, but we can only go so far without financing. We are building a Moon Shot Solution, and we need the money to back that solution. Kadeya is the Tesla of hydration - why don’t I benefit from the same suspension of disbelief as Elon Musk enjoys?
What type of support system have you had and what has that meant for your founder journey?
My family and friends are a huge part of my support system. Part of why we moved to Chicago was to be close to my in-laws and make it possible for me to stay focused and do the hours of work I need to do because I know my son is being cared for by loved ones while I’m at work. Of course, my colleagues are also a massive source of support. One of the highlights in this journey has been building the world class team at Kadeya. For example, Kadeya’s COO/CFO has taken three hardware companies to exit. When we’re going through a difficult fundraising moment, I look to our COO/CFO and her calm demeanor and confidence in Kadeya helps reassure me that we’ll get through the rough patches. The team has fully embraced the mission of Kadeya and remain unnerved by the fundraising challenges - that alone gets me out of bed everyday. I know they’re working hard to change the world, so working hard to fundraise feels less overwhelming in comparison.
What do you think is unique or significant about being at the seed stage in particular?
Seed is often the first time where one has the opportunity to take a company into a priced round, usually done with a leading venture capital firm. This makes seed exciting but challenging. You have the option to do a priced round, or a convertible or SAFE note. It is important to understand those two possibilities, weigh them, and choose between them or simultaneously manage both processes. There are some investors who prefer notes and some who prefer priced rounds, so it takes a lot of research and conversations to know which investors are going to be the right fit. It reminds me a lot of my days working on the floor of the Chicago Board of Trade before I went to Harvard for college: it’s a fast-paced market where supply and demand are rapidly looking for a match, but where factors beyond just price and volume are relevant. What I’m also finding to be interesting in this stage is that for a company like Kadeya, which is a hardware-enabled business, the metrics to hit Series A are very clear, and we are well on our way to hitting those metrics, albeit not quite there. Lots of seed investors say they invest early, many are risk averse and want Kadeya to have hit those metrics before investing, especially given the recent venture capital market reset. Kadeya is in many ways further along than a seed stage company but the metrics, and expectations, are in flux. Data shows these metrics are often further out of reach for female founders which leads to further dilution and then trickles down to affecting female capital ownership rates
What is unique about being a woman in the entrepreneurial space?
When I get feedback from investors, I’m not sure if that feedback is biased because of my gender. That said, the data does show that women are held to different standards. For example, many women get promotions and raises when they are already doing the work while many men get raises and promotions for their potential to do the work. Because I’m building the future, I would rather be judged “like a man” - based on the potential of what I’m building and what I’m capable of - rather than what I have built. If I’m being judged on Kadeya’s past track record, rather than where we’re going, we look like a much smaller company than we are capable of becoming. Isn’t funding a likely but as-yet-unbuilt future the essence of venture capital and risk management? One good thing about being a woman founder in this space is people tend to notice me more and remember who I am: there just aren’t a lot of hardware women founders focused on the construction space based in Chicago. There are also many nonprofits and organizations that are talking about Kadeya’s impact and choose to spotlight us, which helps to generate additional revenue opportunities, which we are clearly capitalizing on.
What has it been like trying to raise in Chicago and what has your experience been like overall in the Chicago tech space?
The general tech and entrepreneurship ecosystem in Chicago has been amazing. I came from New York City where you had to claw your way into meetings (even with degrees from Harvard, Oxford, Tsinghua, and MIT!), but here the doors open more easily. I also always know of a multitude of things and events going on in the city at any moment that would be of interest to me. It is great to have this information transparency and marketplace of ideas. There are so many great initiatives to support all types of tech entrepreneurs with a focus on those from historically excluded backgrounds. I’ve also had positive experiences talking to corporations who would be our customers. Chicago is a “no BS place.” It is not about puffing yourself up. In Chicago, people are real and direct, which enables contracts to be signed quickly. However on the investment side, I find that the nature of the conversation here is different from the West Coast. On the West Coast, people want to hear about your company’s vision, not just what you’ve already done. In Chicago I find the investment community is more focused on revenue outcomes rather than the big vision of what your company can be, which is perhaps where the market is moving anyway so I suppose we can call it a silver lining that Kadeya is already prepared for the new reality of fundraising from VCs.
What is one piece of advice you would give to aspiring women entrepreneurs?
Start now. Also, people always say, “get comfortable with rejection and get comfortable with failure,” which I think is true but rejection and failure seem so final. For example, many of the investors who invested in Kadeya originally said no and watched us continue to make progress, and then they decided to invest. I think it’s better to say, “get comfortable with imperfection,” and then hit the ground running before you have complete confidence in the data - which would mean you’d never start in the first place! That’s why it is important to build a company culture with open dialogue that allows people to admit their weaknesses and blind spots.The hope is that we make fewer mistakes, which is something I believe we’re doing at Kadeya. Women are taught to do things perfectly and not make any mistakes. We need to throw out that idea. Don’t let perfection be the enemy of the good. We need to get good at being good, not perfect.
What made you want to participate in the GET Seed Founder cohort?
When learning about the cohort, I was intrigued by the fact that GET was going to do the heavy lifting of the networking process such as the convening and the organizing. Also, the founders from the previous cohort are entrepreneurs that I hold in high regard so I figured if those women had a good experience as part of the cohort then it would be worthwhile to join.
What has been one of your favorite memories from being in the GET Seed Founder cohort?
I enjoyed participating on a panel for the national Tech Equity Working Group meeting. It was great to meet the other panelists, and I really appreciated how honest and collaborative they were. It was also great to see all the work the Tech Equity Working Group is doing and how they are approaching this ecosystem problem in a holistic fashion, slices of which I see but not in its entirety.
What would you say is the most valuable tool, connection point, or piece of wisdom you have gained from being part of the Seed Founder cohort?
Being part of the cohort has reminded me that putting yourself out there and showing up is so important. For example, when I’m stressed or tired, I don’t want to go to events, but every time I go, I come away with tangible and positive results. Moreover, for all the challenges I’m going through, I have certain privileges. Being part of the cohort reminds me that I have to lift up others while I’m climbing.
In the US alone, industrial workplaces spend $35B+ annually on packaged beverages.
Each liter of bottled water contains 110,000 to 370,000 plastic particles, 90 percent of which are nanoplastics, the rest being microplastics.
1.5%
The global packaged beverage industry is responsible for 1.5% of global GHG emissions
For more information on how you can get involved, reach out to