Investing in Water Aligning Investment Strategies with Water Innovation 2025

The current landscape of water investing1 Investing in water is much-needed, compelling and strategic. Water is foundational to life and indispensable to the global economy. This section outlines the investment case for water solutions, highlighting the urgent need for increased capital, the rising investor interest in the sector, the current realities of investing in water and an overview of the early- stage water innovation landscape. This paper focuses on the investment rationale and opportunities for investing in water solutions. Water solutions refer to a diverse set of technological innovations and nature-based approaches designed to improve the availability, quality and sustainable management of water resources. These solutions support effective, efficient and resilient water systems across various contexts. The paper is particularly intended for capital providers such as venture capital firms, early-stage to growth private equity, family offices, corporate venture arms and other impact-oriented investors. The insights generated for this paper originated from a working group made up of water-focused investors. Although many investors have a global focus, investment activity often targets Europe and North America, where technological development and investment activity is concentrated.2 The Currents of Capital report similarly found that respondents expect the next generation of water technologies to originate from North America and Western Europe.3 Given this regional focus, a future report could offer value by examining trends and opportunities in other parts of the world. Kran Nanobubble: a water efficiency solution for productive processes. Investing in Water: Aligning Investment Strategies with Water Innovation 7