Entrepreneur Friday

Entrepreneur Friday: Rentricity

Posted by Jean

WHO: Frank Zammataro

WHAT: Rentricity

WHERE: New York, NY

WHEN: 2003

HOW: While we’re still fighting to lower unemployment and stabilize the housing market, at least one business sector is going strong. GreenBiz’s semi-annual “Green and the Economy” survey shows that companies are willing to spend money on products and services that will help them be green and eco-conscious – and Frank Zammataro is taking advantage. After leaving Wall Street in 2000, Zammataro was looking for a new project – and after 9/11, an idea for a business spurred while he looked at New York City water towers.

“When you have to bring water from high elevations to low elevations,” Zammataro explains, “you need to slow it down as it comes through the pipeline.” In places like New York City, where water towers often sit on the rooftops of apartment buildings, this is necessary to keep water pressure at a comfortable level – particularly in sinks and showers. “Traditionally, water is squeezed as it goes through a pipeline,” Zammataro says, “but I had an idea that would not only effectively slow the water, but would also generate electricity.” Zammataro’s idea consisted of replacing the existing mechanism inside pipes with a propeller-like “microturbine” – as the water passes through, the propeller slows it down, and as it turns, electricity is generated.

Zammataro knew he was sitting on an idea that would be great for cities across the globe – and while he had found some success in freelancing in IT, his new discovery seemed like the career jump-start he was looking for. “I wanted the opportunity to create not only a good business,” says Zammataro, “but also to do something important for the environment.” He formed a team of friends and colleagues to help him initially fund the project, and was fortunate enough to receive state grant money for the project as well. It took that initial $500,000 (“and a LOT of sweat equity!”) to kick-start the company and land them their first project in Stamford, CT.

In 2007, the Stamford project was successfully completed – and today, they have three more projects underway in Pennsylvania, New Hampshire, and California. Rentricty is also a part of New York City’s new business incubator program – establishing a support network for promising start-ups in the city to help ensure their success. Their exposure as the first “green” incubator in New York City has helped them get investor backing from major water technology businesses throughout the country. While they’re still bootstrapped, Zammataro expects that by the time they complete their third year of business, they’ll be cash-flow positive.

HIS ADVICE: “Don’t underestimate the time, effort, money, and passion required,” says Zammataro. “You have to stick to it and not give up easily, and believe that the time will in fact pay off if you’re able to keep the business growing and going.”