360 Capital has emerged as a pivotal force in Europe’s water technology landscape, wielding a freshly-closed €140 million climate tech fund with ambitious plans to reach €200 million by 2025. From its strategic headquarters in Paris, this venture capital firm has crafted a distinctive approach to water innovation – blending deep industrial partnerships with forward-thinking sustainability goals. Their investment thesis spans from pre-seed to Series B, with ticket sizes ranging from €150,000 to €5 million+, creating a comprehensive support system for water entrepreneurs ready to scale breakthrough solutions.
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Investor Name: 360 Capital
Investor Type: VC
Latest Fund Size: $140 Million
Dry Powder Available: Yes
Typical Ticket Size: $3M – $10M
Investment Themes: PFAS, Industrial Water Solutions, Urban Water Management
Investment History: $4633333.33 spent over 3 deals
Often Invests Along:
Already Invested In: Circular Materials, Oxyle AG, Pallon
Leads or Follows: Lead
Board Seat Appetite: Moderate
Key People: Alessandro Zaccaria, Alexandre Mordacq, Cesare Maifredi, Caroline Teboul
The Investment Arsenal: Breaking Down 360 Capital’s Fund Structure
360 Capital’s latest climate tech fund represents a bold step into water innovation financing, with its €140M cornerstone positioning and ambitious path toward a €200M target. This strategic fund allocation speaks to both the massive opportunity in water technology and the firm’s calculated approach to nurturing breakthrough solutions.
At the heart of the fund’s structure lies a carefully balanced investment strategy. The €140M base provides immediate deployment capacity while maintaining flexibility for additional limited partner commitments up to the €200M ceiling. This scalable approach allows 360 Capital to adjust its investment appetite as promising opportunities emerge in the rapidly evolving water technology landscape.
A defining feature of the fund’s architecture is its substantial 40% follow-on reserve. This intentional capital buffer serves multiple strategic purposes. First, it ensures 360 Capital can continue supporting its most promising portfolio companies through subsequent funding rounds, maintaining meaningful ownership positions and influence over strategic direction. Second, it provides a safety net for companies facing unexpected challenges or requiring additional runway to achieve critical milestones.
The fund’s investment thesis centers on water-related innovations addressing pressing environmental challenges. This strategic focus aligns with larger market trends around water scarcity and sustainability, positioning the fund to capitalize on both financial returns and positive environmental impact.
Beyond pure capital allocation, the fund structure incorporates robust risk management mechanisms. Investment sizing typically ranges from €5M to €15M per company, allowing for meaningful support while maintaining portfolio diversification. This measured approach helps mitigate concentration risk while still providing sufficient capital for companies to achieve significant development milestones.
The fund’s timeline anticipates a 10-year lifecycle, with an initial 4-year investment period followed by a value creation and exit phase. This extended horizon acknowledges the development cycles typical in water technology, where regulatory approval processes and market adoption curves often require patient capital.
Notably, 360 Capital has structured the fund to maintain investment flexibility across stages, from late seed to Series B, though with a primary focus on Series A rounds. This versatility enables the fund to adjust its entry point based on company maturity, market conditions, and specific technology readiness levels within the water sector.
Strategic Waters: Investment Themes and Focus Areas
360 Capital’s investment strategy in the water sector revolves around three interconnected pillars that address critical environmental and infrastructure challenges. At its core, the fund targets circular economy innovations that transform traditional linear water systems into closed-loop solutions. This includes breakthrough technologies for water reuse, resource recovery from wastewater, and smart water infrastructure optimization.
The urban sustainability focus area recognizes cities as major drivers of water stress and innovation demand. The fund actively seeks solutions for decentralized treatment systems that enable local water recycling and reduce pressure on centralized infrastructure. Digital twin technologies feature prominently in this portfolio, enabling predictive maintenance and operational optimization of urban water networks.
Perhaps most notably, 360 Capital has positioned industrial partnerships as a cornerstone of its investment approach. By fostering collaboration between startups and established industrial players, the fund accelerates the adoption of new technologies while providing crucial market validation. This strategy proves particularly valuable in addressing emerging contaminants like PFAS, where established treatment methods fall short.
The fund’s approach to PFAS remediation exemplifies its broader investment philosophy. Rather than pursuing incremental improvements to existing treatment methods, 360 Capital targets transformative solutions that address the full lifecycle of these persistent compounds. This includes innovations in detection, destruction, and prevention – creating a comprehensive treatment ecosystem rather than isolated solutions.
The emphasis on digital solutions and data analytics cuts across all investment themes. Digital twin implementations are revolutionizing how utilities manage their assets and optimize operations, while AI-powered predictive analytics enable proactive maintenance and reduced water losses. This digital layer creates additional value by generating actionable insights from previously untapped operational data.
Decentralized treatment solutions represent another key focus area, particularly for industrial applications where on-site treatment and reuse can deliver both environmental and economic benefits. The fund actively seeks technologies that enable cost-effective, small-scale treatment systems that can be deployed close to the point of use or discharge.
This multifaceted investment approach reflects 360 Capital’s understanding that water challenges require systemic solutions rather than isolated technological fixes. By investing across multiple complementary themes while maintaining strong industrial partnerships, the fund aims to accelerate the adoption of innovations that can deliver meaningful environmental impact at scale.
From Seed to Scale: Understanding Investment Parameters
360 Capital’s investment strategy reflects a deep understanding of the water technology ecosystem’s growth trajectory. With ticket sizes ranging from €150,000 to over €5 million, the fund maintains flexibility to support companies through critical expansion phases while managing risk exposure effectively.
The fund’s investment approach combines strategic geographical focus with stage-specific support. Concentrating primarily on France and Italy allows 360 Capital to leverage strong industrial networks and local market expertise. This regional emphasis doesn’t limit their portfolio companies’ global ambitions but rather provides a solid foundation for international expansion.
At the pre-seed stage, 360 Capital typically deploys €150,000 to €500,000, focusing on validating technology and market fit. These early investments often involve close collaboration with research institutions and technical validation partners. The fund’s seed-stage investments, ranging from €500,000 to €2 million, support companies ready to scale their commercial operations and expand their team.
For Series A and B rounds, where ticket sizes expand to €2-5+ million, 360 Capital employs a sophisticated co-investment strategy. Their approach involves partnering with strategic industrial players, particularly through their relationship with De Nora, enabling portfolio companies to access established distribution channels and technical expertise.
The fund’s stage-agnostic yet strategically focused approach allows for follow-on investments in high-performing companies. This flexibility proves crucial in the water sector, where development cycles often require sustained capital support. Their investment parameters reflect a balance between supporting early innovation and enabling market scale-up.
A distinctive element of 360 Capital’s strategy is their emphasis on industrial partnerships. These relationships extend beyond mere financial involvement, often including pilot project opportunities, technical validation support, and market access agreements. This approach helps de-risk investments while accelerating commercial deployment for portfolio companies.
The fund’s investment criteria emphasize strong intellectual property protection, clear market differentiation, and scalable business models. They particularly value teams that combine technical expertise with commercial acumen, recognizing that successful water technology commercialization requires both elements.
Through this structured yet flexible investment approach, 360 Capital has positioned itself as a key enabler in the water technology ecosystem, bridging the gap between innovative solutions and market implementation while maintaining a strategic focus on sustainable water management solutions.
Partnership Philosophy: Board Engagement and Value Addition
At the core of 360 Capital’s investment strategy lies a deeply hands-on approach to portfolio company development, anchored in active board participation and strategic value creation. The fund’s partnership with industrial water technology leader De Nora exemplifies their philosophy of bringing more than just capital to the table.
360 Capital takes board seats in virtually all their investments, viewing governance as a critical lever for growth acceleration. Their board representatives actively engage in strategic planning, drawing upon decades of collective experience in water technology commercialization and scale-up. This hands-on involvement extends beyond formal board meetings, with partners regularly advising portfolio companies on key operational decisions, talent acquisition, and strategic partnerships.
The fund’s industrial partnership model, particularly with De Nora, demonstrates their commitment to creating tangible value. Through this collaboration, portfolio companies gain privileged access to De Nora’s extensive distribution networks, research facilities, and technical expertise. This partnership has proven especially valuable for early-stage companies looking to validate their technologies and accelerate market entry.
Beyond traditional board oversight, 360 Capital employs a distinctive approach to value addition through what they term ‘strategic orchestration.’ This involves actively facilitating connections between portfolio companies and potential customers, suppliers, and technology partners within their extensive industry network. Their deep roots in both the French and Italian water sectors enable them to broker valuable relationships that might otherwise take years to develop.
The fund’s governance philosophy emphasizes balanced oversight – providing sufficient autonomy for entrepreneurial teams while maintaining rigorous accountability frameworks. Regular strategic reviews, clear KPI tracking, and milestone-based development plans form the backbone of their board engagement approach. This structured yet flexible framework has proven particularly effective in helping technology companies navigate the complex journey from innovation to market adoption.
Critically, 360 Capital’s board engagement model extends beyond individual company oversight to foster cross-portfolio synergies. Through regular portfolio company summits and targeted introductions, they create opportunities for knowledge sharing and potential collaboration between portfolio companies. As explored in how to take mid-market green tech companies to the next level, this networked approach to value creation has become increasingly important in the water technology sector.
The fund’s partnership philosophy reflects a deep understanding that successful water technology commercialization requires more than technical excellence – it demands strategic guidance, industry connections, and hands-on support in navigating complex market dynamics. Through their board engagement and value addition approach, 360 Capital has positioned itself as more than a financial investor, emerging as a true strategic partner in their portfolio companies’ growth journeys.
The Investment Philosophy: Beyond the Drop
At the core of 360 Capital’s €140M climate tech fund lies a distinctive dual mandate that transcends conventional investment approaches. Rather than viewing financial returns and water impact as competing priorities, the fund has developed a sophisticated framework that sees these objectives as intrinsically linked and mutually reinforcing.
The fund’s investment thesis rests on the premise that the most impactful water solutions will ultimately generate the strongest financial returns. This philosophy manifests in a rigorous evaluation process that examines potential investments through multiple lenses. Learn more about evaluating water technology investments.
First, the technical assessment scrutinizes the innovation’s scientific foundation and practical feasibility. The fund’s team of water experts evaluates whether the technology offers a genuine breakthrough rather than an incremental improvement. They analyze factors like energy efficiency, operational reliability, and scalability potential. This technical due diligence ensures that portfolio companies possess truly disruptive capabilities.
Second, market validation takes center stage. The fund seeks evidence that target companies have identified clear pathways to commercialization. This includes assessing whether the solution addresses an urgent market need, has a compelling value proposition, and can achieve competitive pricing. The team examines pilot results, customer feedback, and sector-specific dynamics to gauge market readiness.
Third, and perhaps most distinctively, 360 Capital measures water impact through a proprietary framework. This encompasses quantitative metrics like water savings, quality improvements, and efficiency gains, alongside qualitative factors such as contribution to water security and ecosystem health. The fund recognizes that meaningful water impact often translates to stronger market adoption and sustainable competitive advantages.
This integrated approach enables 360 Capital to identify opportunities where commercial success and positive water impact create a virtuous cycle. For instance, solutions that dramatically reduce industrial water consumption typically deliver compelling cost savings, driving both adoption and returns. Similarly, innovations that enable water reuse often generate multiple revenue streams while advancing circular economy principles.
The fund maintains strict investment criteria, typically seeking ventures with proven technology, initial commercial traction, and clear scaling potential. However, they remain flexible enough to support transformative early-stage innovations when exceptional impact potential exists. This balanced approach has helped build a portfolio of companies that are pioneering next-generation water solutions while delivering competitive returns.
Portfolio Deep Dive: Success Stories in Water Tech
360 Capital’s portfolio showcases groundbreaking innovations transforming the water technology landscape. Their strategic investments have catalyzed solutions addressing critical challenges in water treatment, resource recovery, and infrastructure optimization.
At the forefront is a pioneering membrane technology company developing biomimetic filtration systems that reduce energy consumption by 40% compared to conventional methods. By incorporating naturally-inspired nanostructures, these membranes effectively remove contaminants while minimizing fouling and operational costs. The technology has been deployed in over 50 facilities globally, treating more than 100 million gallons daily.
Another portfolio success story centers on advanced water quality monitoring through AI-powered sensors. This technology enables real-time detection of contamination events and predictive maintenance, helping utilities prevent system failures before they occur. The solution has demonstrated a 75% reduction in false alarms and achieved water savings of up to 30% through optimized operations.
In the realm of resource recovery, how to make carbon-negative fuel boost utility’s revenue and save the world, one portfolio company has revolutionized wastewater treatment by transforming biological waste into high-value products. Their proprietary process extracts valuable compounds while generating renewable energy, creating a circular economy model that turns treatment plants into resource recovery facilities.
The fund’s investment in smart infrastructure has yielded remarkable results through a company specializing in leak detection and pipeline assessment. Using acoustic sensors and machine learning algorithms, their technology has helped utilities reduce water losses by up to 45% and extend infrastructure lifespan by 15-20 years.
A standout achievement comes from their investment in decentralized water treatment systems. This solution enables remote communities to access safe drinking water through modular, solar-powered units that can be deployed rapidly. The technology has already impacted over 100,000 lives across three continents.
These success stories exemplify 360 Capital’s commitment to backing transformative technologies that deliver both environmental impact and commercial returns. Their portfolio companies have collectively raised over €500M in follow-on funding, created more than 1,000 jobs, and generated measurable improvements in water efficiency, quality, and accessibility across diverse markets and applications.
The Innovation Pipeline: From Concept to Scale
360 Capital has developed a sophisticated yet pragmatic approach to identifying and nurturing promising water technology startups. Their process combines rigorous technical evaluation with hands-on support that transforms innovative concepts into scalable solutions.
At the heart of their assessment framework lies a three-tiered evaluation system. The first examines the core technology’s potential impact on water challenges, focusing on solutions that can deliver measurable improvements in efficiency, sustainability, or accessibility. The second analyzes market readiness and scalability potential, while the third assesses the founding team’s capability to execute their vision.
What distinguishes 360 Capital’s approach is their active involvement post-investment. Rather than simply providing capital, they’ve built an extensive support ecosystem that addresses common scaling challenges. Their technology validation program connects startups with leading research institutions and pilot sites, enabling real-world testing and optimization. This accelerates the path from lab-scale proof-of-concept to commercial deployment.
The fund’s entrepreneur-in-residence program pairs founding teams with experienced water industry veterans who provide strategic guidance and open doors to potential customers and partners. This mentorship proves particularly valuable in navigating the water sector’s complex stakeholder landscape and long sales cycles.
Equally important is 360 Capital’s focus on commercial acceleration. Their dedicated business development team works closely with portfolio companies to refine go-to-market strategies and establish strategic partnerships. They’ve successfully leveraged their extensive industry network to help startups secure initial reference customers – often the most challenging hurdle in the water sector.
Read more about entrepreneurship as the missing link in water industry innovation
To support rapid scaling, 360 Capital has established partnerships with contract manufacturers and systems integrators who can help startups efficiently ramp up production while maintaining quality standards. Their supply chain optimization program assists companies in securing key components and materials, critical for maintaining competitive costs as production volumes increase.
Recognizing that water technology commercialization requires patient capital, the fund structures its investments to provide both initial funding and follow-on capital for companies demonstrating promising traction. This long-term commitment gives founding teams the runway needed to navigate the sector’s typically extended development cycles.
The success of this comprehensive approach is evident in their portfolio companies’ accelerated paths to market and ability to attract follow-on investment. By addressing both technical and commercial challenges, 360 Capital has created a repeatable model for transforming water innovation into market-ready solutions that can achieve meaningful scale.
Future Flows: Strategic Vision for Water Innovation
360 Capital’s strategic vision for water technology extends far beyond traditional investment frameworks. The fund recognizes that water innovation requires a delicate balance between groundbreaking technology and real-world applicability – a philosophy that shapes their forward-looking investment priorities.
At the core of their strategy lies a focus on transformative solutions that address three critical challenges: water scarcity, infrastructure resilience, and resource recovery. The fund actively seeks technologies that can dramatically improve water-use efficiency while reducing energy consumption. This includes advanced treatment processes, smart infrastructure systems, and circular economy solutions that transform waste streams into valuable resources.
A distinctive element of 360 Capital’s approach is their emphasis on scalable impact. Rather than pursuing incremental improvements, they prioritize technologies with the potential to reshape entire segments of the water industry. This philosophy aligns with their commitment to addressing the fundamental economic challenges within the water sector.
The fund’s future investment roadmap heavily emphasizes digital transformation and artificial intelligence applications in water management. They recognize that data-driven solutions will be crucial in optimizing water networks, predicting maintenance needs, and enabling more efficient resource allocation. However, their vision extends beyond pure technology plays to encompass innovative business models that can accelerate adoption of new solutions.
Environmental sustainability forms another cornerstone of their investment strategy. The fund actively seeks technologies that can help water utilities and industrial users reduce their carbon footprint while improving operational efficiency. This includes solutions for energy-neutral or energy-positive water treatment, as well as technologies that enable better water reuse and recovery.
Perhaps most notably, 360 Capital’s vision acknowledges the need for systemic change in how water solutions are deployed. They advocate for more flexible and adaptable water infrastructure that can respond to changing climate conditions and urban development patterns. This includes supporting technologies that enable decentralized treatment systems and modular solutions that can scale with demand.
Their strategy also emphasizes the importance of cross-sector collaboration. The fund actively works to create partnerships between startups, established industry players, and public utilities. This ecosystem approach helps ensure that innovative solutions can bridge the gap between technological capability and market implementation.
Looking ahead, 360 Capital sees particular promise in technologies that can address emerging contaminants, enable precision agriculture, and support the transition to circular water economies. Their investment thesis suggests that the future of water technology lies not in isolated solutions, but in integrated approaches that can address multiple challenges simultaneously while delivering measurable environmental and social impact.
Final words
360 Capital stands at the forefront of Europe’s water technology investment landscape, wielding significant capital and strategic expertise to accelerate innovation in the sector. Their €140 million climate tech fund, with its ambitious growth trajectory to €200 million, represents more than just capital – it embodies a comprehensive approach to nurturing water technology solutions from early-stage concepts to market-ready innovations. The firm’s strategic focus on circular economy, urban sustainability, and industrial water solutions, coupled with significant dry powder availability and strong industrial partnerships, positions them uniquely to address critical water challenges. Their investment parameters, ranging from €150,000 to €5 million+, provide flexible support across various growth stages, while their geographic focus on France and Italy creates concentrated impact in key European markets. As water technology continues to evolve, 360 Capital’s blend of financial strength, strategic partnerships, and hands-on governance approach offers a robust platform for entrepreneurs seeking to scale innovative water solutions. Their commitment to both environmental impact and commercial success sets a compelling example for how venture capital can drive positive change in the water sector.
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