The pitch went like this: Good, safe drinking water has become such a scarce resource that Americans will pay to fill up jugs — 30 or 40 cents to the gallon — at dispensers all across the country.
Hundreds of investors bought thousands of units, believing in the vision laid out by Ryan Wear, founder of a startup called WaterStation Management. They plunked down $8,500 for each vending machine and then waited for the dispensers to throw off a steady stream of cash. Among those lured in was a product manager in Oregon in 2021 and then, several months later, a dentist in Illinois. Each bought dozens of water dispensers, which Wear’s team would install and operate.