Investing in Water Aligning Investment Strategies with Water Innovation 2025

Water innovation investment spectrum2 Compelling water investment opportunities exist across a range of investment theses. Investment opportunities in the water sector span multiple geographical areas, technologies and asset classes. Rather than requiring a complete strategic overhaul, well-informed water investments can reinforce existing investment theses, whether they focus on innovation, infrastructure, impact or financial returns. For investors seeking high-growth opportunities in early-stage technologies, the global smart water management market (encompassing the systems, technologies and services used to optimize the monitoring, control and conservation of water resources) is projected to reach $22.4 billion by 2026, growing at a compound annual growth rate (CAGR) of 10.1%.42 For those prioritizing impact, strategic investments in water and climate-resilient infrastructure boosts health, productivity and resilience while delivering long-term financial gains of up to 10x returns.43 For investors interested in accessing new markets, the Middle East and North Africa (MENA) region represents a particularly high- potential market, accounting for 39.5% of the global water and sewage project pipeline, equivalent to approximately $391 billion, with growing demand for smart water solutions and sustainable desalination technologies.44 Nearly every type of investor and portfolio can benefit from exposure to this essential and undercapitalized sector. With a particular focus on water innovation, this section explores how water opportunities align with different types of investor, risk profile and investment strategy, offering tailored pathways for corporate, impact and early-stage investors alike. Fluidion: affordable field-deployable water safety monitoring instrumentation. Investing in Water: Aligning Investment Strategies with Water Innovation 17