When a coalition of billionaires led by Bill Gates decided to put their capital to work solving climate change, they didn’t just write checks – they reimagined how breakthrough technologies could be funded and scaled. Breakthrough Energy Ventures emerged in 2016 with an unprecedented $1 billion war chest and a mission to accelerate the path to net-zero emissions. Within their portfolio of game-changing innovations, water technologies hold a special place – from atmospheric water generation to next-gen desalination. For water entrepreneurs and impact investors alike, BEV represents both inspiration and opportunity in the quest to solve our most pressing water challenges.
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Investor Name: Breakthrough Energy Ventures
Investor Type: VC
Latest Fund Size: $1000 Million
Dry Powder Available: Yes
Typical Ticket Size: $3M – $10M
Investment Themes: water contamination cleanup (PFAS), digital water infrastructure, decentralized water treatment and supply
Investment History: $79421008.28 spent over 7 deals
Often Invests Along: BMW i Ventures, Duke Energy, Lowercarbon Capital, Presidio Ventures, The Engine
Already Invested In: Lilac Solutions, SOURCE Water,
Leads or Follows: Follow
Board Seat Appetite: High
Key People: Carmichael Roberts, Eric Toone, Christina Karapataki, Phil Larochelle, Gaëtan Bonhomme
The Genesis of a Climate Tech Giant
In 2015, Bill Gates recognized that the world needed a radically different approach to funding climate solutions. While traditional venture capital sought quick returns, breakthrough energy technologies required patient, science-driven capital willing to wait a decade or more for commercialization. This insight led to the formation of Breakthrough Energy Ventures (BEV).
Gates began by assembling an unprecedented coalition of billionaire investors, including Jeff Bezos, Richard Branson, and Jack Ma. But BEV’s true innovation wasn’t just its deep pockets – it was its unique investment philosophy. The fund committed to a 20-year timeline, far longer than typical VC funds, allowing it to support technologies through the lengthy development cycles needed for true breakthroughs.
The fund’s approach centered on rigorous scientific evaluation. BEV built an in-house team of technical experts to thoroughly assess potential investments against strict criteria: technologies had to demonstrate potential for gigaton-scale carbon reduction if successful. This science-first methodology helped BEV avoid hype cycles and focus on fundamental innovations.
Crucially, BEV structured itself to provide more than just capital. The fund developed an extensive network of industry partners, research institutions, and policy experts to help portfolio companies navigate complex regulatory environments and find paths to market. This comprehensive support system significantly improved the odds of success for early-stage climate technologies.
The fund’s water technology thesis emerged from understanding water’s central role in climate adaptation and mitigation. BEV recognized that breakthrough water innovations could deliver outsized impact by addressing both climate resilience and emissions reduction.
As explored in ‘How to Actively Invest Philanthropy and Save the Water World’, this patient capital approach has proven essential for water technology development. The fund’s structure allows it to support solutions through lengthy pilots and regulatory approvals – critical stages where many promising water innovations historically failed to cross the “valley of death” between invention and commercial deployment.
Water Innovation: A Strategic Priority
Breakthrough Energy Ventures approaches water technology investments with methodical precision, applying rigorous scientific and economic criteria to identify solutions with transformative potential. Their investment thesis centers on three core pillars: technological innovation, scalability, and meaningful climate impact.
In evaluating water technologies, BEV scrutinizes solutions through multiple lenses. The fund prioritizes breakthroughs that can dramatically reduce energy consumption in water treatment processes while maintaining or improving performance. For desalination technologies, they look beyond incremental efficiency gains, seeking step-change innovations in membrane materials, energy recovery systems, and alternative separation methods that could slash energy requirements by 50% or more.
Water reuse represents another key focus area where BEV sees immense opportunity. The fund actively seeks technologies that can make water recycling more economically viable across industries and geographies. This includes innovations in treatment trains that can handle complex mixed waste streams, smart monitoring systems for quality assurance, and modular solutions enabling decentralized reuse.
BEV’s due diligence process stands out for its technical depth. Their team of scientists and engineers conduct extensive analysis of fundamental chemistry and physics, pilot data, and scaling parameters. They assess not just technical performance, but also practical aspects like operational complexity, maintenance requirements, and chemical/energy inputs that impact real-world adoption.
The fund takes a systems-level view of water innovation, recognizing that breakthrough solutions often require advances across multiple domains – from materials science to digital controls to circular economy approaches. This holistic perspective informs their portfolio strategy, leading them to invest in complementary technologies that can be integrated into more complete solutions.
Notably, BEV maintains a long-term outlook aligned with the extended timeframes typically required to scale and commercialize water technologies. Rather than seeking quick exits, they provide patient capital and strategic support to help portfolio companies navigate the complex stakeholder landscape of the water sector. This approach has made them an attractive partner for entrepreneurs tackling water’s most challenging problems.
Portfolio Deep Dive: Water Tech Stars
Breakthrough Energy Ventures’ water technology portfolio showcases some of the most promising innovations tackling our global water challenges. By strategically investing in companies across the water value chain, BEV is accelerating the path from breakthrough science to commercial solutions.
A standout investment focuses on advanced membrane technology that dramatically reduces energy consumption in desalination and water reuse applications. Using biomimetic principles inspired by natural water transport in cells, this approach achieves 50% better energy efficiency compared to conventional membranes. Early pilot projects have validated the performance claims, with full-scale commercial deployments now underway.
BEV has also backed transformative water quality monitoring solutions that leverage AI and advanced sensors. These systems provide real-time, comprehensive water quality data while reducing monitoring costs by 80%. The technology has already been adopted by several major utilities to enhance their treatment processes and regulatory compliance.
In the emerging space of decentralized water treatment, the fund has invested in modular systems that enable cost-effective water recycling at the building or district scale. This technology integrates smart controls and novel treatment processes to deliver consistent water quality while minimizing operator requirements. The solution has gained significant traction in water-stressed regions looking to diversify their water supplies.
Beyond individual technologies, BEV takes a systems-level view of water innovation. Many portfolio companies collaborate to create integrated solutions – for instance, combining advanced treatment with digital optimization tools. This approach helps address the complex, interconnected challenges in the water sector.
Critically, BEV’s portfolio companies are progressing from proof-of-concept to commercial scale. Several have secured major customer contracts and are expanding manufacturing capacity. This validates BEV’s thesis that breakthrough water technologies can deliver both environmental impact and attractive financial returns.
The fund continues actively evaluating emerging water technologies, with particular interest in solutions that reduce energy intensity, enable water reuse, and improve resource recovery. Their portfolio demonstrates how strategic investment can accelerate the commercialization of innovations needed to ensure sustainable water access globally.
The BEV Investment Playbook
Breakthrough Energy Ventures approaches water technology investments with methodical precision and unique advantages stemming from its patient capital structure. Unlike traditional venture firms constrained by shorter fund lifecycles, BEV can take a longer-term view spanning up to 20 years.
Due diligence at BEV follows a distinctive three-phase framework. The initial screening heavily weights technological differentiation and climate impact potential, specifically seeking innovations that could reduce greenhouse gas emissions by at least 500 million metric tons annually. The second phase involves deep technical validation, leveraging BEV’s network of subject matter experts. The final evaluation focuses on commercial viability and scaling potential.
BEV’s deal structuring reflects its mission-driven approach. The fund typically leads or co-leads Series A and B rounds, deploying $2-20 million initially with substantial reserves for follow-on investments. Term sheets emphasize founder-friendly provisions and strategic support over aggressive control rights. Most notably, BEV incorporates impact metrics directly into investment documents, aligning financial returns with environmental outcomes.
Post-investment, BEV’s support extends far beyond capital. Portfolio companies gain access to the fund’s extensive network of corporate partners, technical advisors, and fellow entrepreneurs. The team actively assists with customer introductions, talent recruitment, and strategic planning. Regular portfolio reviews focus not just on financial metrics but also on technology development milestones and impact measurement.
What truly sets BEV apart is its ability to take concentrated positions in promising but capital-intensive technologies that traditional VCs might avoid. This stems from both its patient capital structure and its unique ability to marshal additional resources through its network of strategic partners.
As covered in depth at dww.show/what-do-you-need-to-know-to-invest-wisely-in-water-technologies, BEV’s comprehensive approach has made it the partner of choice for ambitious water tech startups tackling major environmental challenges. The fund’s playbook combines rigorous technical assessment with unparalleled support resources, creating a framework uniquely suited to scaling breakthrough water innovations.
Lessons for Water Entrepreneurs
For water technology startups seeking Breakthrough Energy Ventures’ backing, understanding their stringent investment criteria is crucial. BEV’s approach hinges on demonstrable climate impact potential and scalable technological innovation.
First and foremost, startups must prove their solution can meaningfully reduce greenhouse gas emissions. The technology should demonstrate potential for gigaton-scale impact when deployed globally. Quantifiable metrics around emissions reduction, water savings, and energy efficiency gains are essential.
Technical requirements focus on breakthrough innovation rather than incremental improvements. Solutions must show clear advantages over existing technologies across multiple dimensions – cost, performance, reliability, and environmental impact. BEV particularly values innovations that can overcome traditional trade-offs, like achieving both higher treatment efficacy and lower energy consumption.
Commercial viability is equally critical. Entrepreneurs need robust techno-economic analyses demonstrating competitive costs at scale. The path to market should be well-defined, with identified early adopters and a clear value proposition. Solutions addressing both climate impact and customer pain points have the highest chance of success.
Startups must also demonstrate the capability to scale rapidly. This includes having strong intellectual property protection, a talented technical team, and the ability to attract additional capital. BEV looks for technologies that can achieve commercial deployment within 5-10 years.
Regarding impact metrics, successful applicants typically provide detailed analysis of their solution’s potential environmental benefits. This includes lifecycle assessments, carbon footprint calculations, and water savings projections backed by pilot data or credible third-party validation.
Entrepreneurs should focus on developing comprehensive technical documentation, including detailed performance data, scaling strategies, and rigorous market analysis. As highlighted in our interview with several successful water tech founders, those who secure VC backing understand how to articulate both their technology’s competitive advantages and its broader environmental impact.
Ultimately, BEV seeks entrepreneurs who combine technical excellence with commercial acumen and a genuine commitment to solving climate challenges. Success requires not just innovative technology, but the ability to build a sustainable business that can deliver meaningful environmental impact at scale.
Future Horizons: BEV’s Water Vision
Breakthrough Energy Ventures stands at a pivotal moment in reshaping water technology’s future landscape. Their vision extends far beyond conventional water treatment, focusing on transformative solutions that could fundamentally alter how humanity interacts with water resources.
BEV’s strategic focus encompasses three primary horizons. The first centers on developing scalable water purification technologies that can operate with minimal energy input. They’re particularly interested in breakthroughs that could enable distributed treatment systems, making clean water accessible in remote locations without extensive infrastructure requirements.
The second horizon targets water-energy nexus innovations. BEV recognizes the intricate relationship between water and climate solutions, pushing for technologies that address both challenges simultaneously. This includes exploring novel approaches to wastewater treatment that can generate energy while purifying water, and innovations in water-efficient cooling systems for power plants.
The third and most ambitious horizon focuses on breakthrough technologies that could revolutionize water availability. This includes advancing atmospheric water harvesting, developing more efficient desalination processes, and creating closed-loop water systems for industrial applications. BEV’s investment thesis in this space emphasizes solutions that can operate at scale while maintaining economic viability.
Looking ahead, BEV is actively exploring emerging opportunities in digital water technologies, particularly those leveraging artificial intelligence and advanced sensors for predictive maintenance and optimization. They’re also increasingly interested in nature-based solutions that can be enhanced through technological innovation, creating hybrid approaches to water management.
Their investment strategy increasingly emphasizes solutions that can address multiple challenges simultaneously, recognizing that future water technologies must deliver both environmental and economic benefits to achieve widespread adoption. This dual-impact approach shapes their evaluation of potential investments and guides their long-term vision for water innovation.
The Gates Vision for Water Innovation
Bill Gates launched Breakthrough Energy Ventures (BEV) with a distinctive philosophy that sets it apart from traditional cleantech investors. The fund’s approach to water innovation emerges from a deep understanding that water challenges require patient capital and breakthrough technologies to create meaningful impact.
At its core, BEV’s water strategy focuses on identifying transformative solutions that can scale globally. The fund specifically seeks technologies addressing water scarcity, quality, and efficiency – but with a crucial twist. Unlike conventional investors who shy away from capital-intensive hardware plays, BEV embraces technical risk when the potential impact justifies it.
This appetite for technical complexity stems from Gates’ analysis that many water challenges require fundamental scientific breakthroughs, not just digital solutions or business model innovations. BEV’s investment thesis holds that early-stage, capital-intensive technologies often face a ‘valley of death’ between research funding and commercial deployment. This creates an opportunity for patient investors willing to back promising but unproven approaches.
The fund’s strategy particularly emphasizes solutions that can achieve commercial viability while delivering exponential environmental benefits. Rather than incremental improvements, BEV seeks step-change innovations that could reshape entire industries. This might mean backing novel materials for water treatment, breakthrough desalination approaches, or transformative wastewater recovery technologies.
Crucially, BEV pairs its tolerance for technical risk with rigorous market analysis. The fund’s investment process deeply examines not just whether a technology works, but whether it can scale commercially and create lasting impact. This dual focus on technical audacity and market reality reflects Gates’ pragmatic idealism – the belief that solving global challenges requires both ambitious innovation and sound business fundamentals.
This vision has attracted other billionaire backers who share Gates’ conviction that patient capital focused on hard technical problems can unlock solutions to water’s greatest challenges. The fund’s structure, with committed capital over decades rather than typical venture timeframes, enables it to take the long view necessary for deep tech water innovation.
Portfolio Deep Dive: Water Tech Winners
Breakthrough Energy Ventures’ water technology portfolio represents some of the most promising innovations addressing global water challenges. At the forefront is Source Global, whose hydropanel technology extracts water from air using only solar energy. While the technology carries a premium price point, its ability to produce drinking water in water-stressed regions has attracted significant investment and deployment across multiple continents.
Beyond atmospheric water generation, BEV has placed strategic bets on water treatment technologies that promise to revolutionize industrial processes. Boston Metal’s molten oxide electrolysis technology, while primarily focused on steel production, demonstrates significant potential for treating complex industrial wastewaters while recovering valuable minerals. The process achieves unprecedented removal rates of dissolved metals while consuming significantly less energy than conventional treatment methods.
In the municipal water space, BEV’s portfolio companies are tackling infrastructure challenges through advanced materials and smart systems. Their investments prioritize solutions that can be deployed within existing treatment plants and distribution networks, maximizing adoption potential while minimizing implementation barriers.
Several portfolio companies focus on water quality monitoring and analytics. These ventures leverage artificial intelligence and advanced sensors to provide real-time water quality data, enabling proactive maintenance and reducing treatment costs. This emphasis on digital solutions reflects BEV’s understanding that many water challenges require better information as much as new treatment technologies.
What distinguishes BEV’s water technology investments is their emphasis on scalability and their potential for significant climate impact. Each portfolio company must demonstrate a credible path to reducing greenhouse gas emissions by at least 500 million metric tons annually if deployed at scale. This ambitious requirement has shaped a portfolio of technologies that often deliver multiple benefits – addressing water challenges while simultaneously reducing energy consumption or enabling cleaner industrial processes.
Investment Criteria: Decoding BEV’s Playbook
Breakthrough Energy Ventures applies rigorous investment criteria that blend ambitious climate impact goals with pragmatic market viability requirements. Their water technology evaluation framework centers on three core pillars: breakthrough potential, emissions reduction capability, and commercial scalability.
BEV’s definition of breakthrough potential demands transformative approaches rather than incremental improvements. Water technologies must demonstrate the ability to fundamentally reshape existing processes or create entirely new paradigms. This includes innovations in areas like membrane materials, treatment chemistries, or digital optimization that can deliver order-of-magnitude improvements in efficiency or effectiveness.
The climate impact assessment focuses specifically on greenhouse gas reduction potential, either directly through more energy-efficient water treatment or indirectly by enabling better water resource management. BEV’s methodology examines both immediate emissions reductions and long-term climate resilience benefits. Projects must demonstrate potential to reduce at least half a gigaton of greenhouse gases annually when scaled.
Market viability forms the third critical pillar of BEV’s evaluation framework. Technologies must show a credible path to competitive costs at scale, typically targeting a 50-90% reduction versus incumbent solutions. The fund acknowledges longer commercialization timelines for water innovations but still requires clear unit economics and defined market entry strategies.
Beyond these core criteria, BEV seeks solutions with strong intellectual property protection and experienced technical teams. The fund shows particular interest in platform technologies that can address multiple water challenges or integrate with other climate solutions. This reflects their systems-thinking approach to water innovation.
Notably, BEV has refined these criteria through practical experience, as explored in how to actively invest philanthropy and save the water world. Their methodology now includes structured assessment of regulatory pathways, customer adoption barriers, and infrastructure integration requirements – factors that historically challenged water technology scale-up.
The fund maintains consistently high bars across these criteria while remaining flexible on specific technical approaches. This allows them to support diverse solutions – from advanced materials to AI-enabled systems – while ensuring all investments maintain the potential for transformative impact.
The Long Game: Patient Capital Strategy
Breakthrough Energy Ventures’ 20-year investment horizon represents a radical departure from traditional venture capital timelines. This extended timeline fundamentally reshapes how water technology innovations can develop and scale.
The fund’s patient capital approach addresses a critical gap in water tech development. Most venture firms demand returns within 5-7 years, forcing startups to rush technologies to market before they’re fully optimized. BEV’s longer horizon enables proper technology validation through extensive pilot testing and iterative improvements.
This strategic patience manifests in several ways. Early-stage companies receive support through extended research and development phases without pressure for premature commercialization. The fund can weather the lengthy permitting and regulatory approval processes common in the water sector. Most importantly, technologies can be refined through multiple iterations to achieve optimal performance and cost metrics.
Risk management also benefits significantly from this approach. Rather than pushing for rapid scaling that could expose technical flaws, BEV encourages methodical validation across different applications and operating conditions. This systematic de-risking makes technologies more attractive to follow-on investors and customers.
The extended timeline particularly suits water infrastructure projects, which often require years of performance data to gain market acceptance. As discussed in How to Leverage Water Risk Assessment to Unlock Business Opportunities, thorough validation builds confidence among risk-averse utility customers.
BEV’s patient capital strategy also enables comprehensive scale-up planning. Companies can establish robust supply chains, develop strategic partnerships, and build out their operational capabilities systematically. This measured approach helps avoid the pitfalls of premature scaling that have derailed many promising water technologies.
The fund’s long-term perspective extends beyond individual investments to consider broader market development. By supporting enabling technologies and platform solutions, BEV helps create the ecosystem needed for widespread adoption of breakthrough water innovations.
Co-Investment Opportunities and Partnerships
Breakthrough Energy Ventures (BEV) employs a distinctive co-investment model that creates valuable opportunities for entrepreneurs and impact investors seeking to address water challenges. This collaborative approach combines BEV’s patient capital with strategic partnerships to accelerate water technology deployment.
The fund typically structures co-investments through syndicated funding rounds, where BEV serves as either lead investor or strategic partner. Entrepreneurs can access BEV’s investment pipeline through direct pitches or introductions from trusted network partners. The fund particularly values co-investors who bring sector expertise and complementary capabilities to strengthen portfolio companies.
BEV’s partnership models extend beyond traditional equity investments. Through strategic collaborations, the fund helps startups establish pilot projects with industrial partners, negotiate licensing agreements, and develop go-to-market strategies. This hands-on approach helps de-risk technologies while accelerating commercial adoption.
The fund’s partnership criteria emphasize three key elements: technological synergy with BEV’s mission, clear pathways to scale, and potential for significant climate impact. Co-investors must demonstrate long-term commitment and alignment with these objectives. BEV typically seeks partnerships where all parties contribute meaningful resources beyond capital.
For entrepreneurs, successful engagement with BEV often begins with early relationship building, even before formal investment discussions. The fund values ongoing dialogue to understand technology development trajectories and identify optimal timing for collaboration. This approach allows BEV to provide strategic guidance while evaluating potential investment fit.
BEV’s co-investment structures commonly include provisions for follow-on funding to support portfolio companies through multiple growth stages. The fund works closely with co-investors to coordinate capital deployment and maximize strategic value creation. This coordinated approach helps ensure portfolio companies maintain adequate funding for technology development and market expansion.
Future Horizons: BEV’s Water Tech Roadmap
Breakthrough Energy Ventures is charting an ambitious course for water technology investments over the next decade, focusing on transformative solutions that can scale globally. The fund’s strategic priorities reflect a deep understanding of water’s interconnected challenges and opportunities.
A key investment focus remains breakthrough water treatment technologies that can dramatically reduce energy consumption while improving performance. BEV seeks innovations that can reduce treatment costs by at least 50% through novel materials, process intensification, or revolutionary system designs. The fund has particular interest in water reuse solutions that can operate at net-zero or net-positive energy.
Another critical priority is digital transformation and AI-enabled solutions. BEV recognizes that advanced analytics, machine learning, and automation will be essential for optimizing water systems and enabling predictive maintenance. The fund actively seeks startups developing smart sensors, AI platforms for treatment optimization, and digital twins that can improve system reliability while reducing operational costs.
For entrepreneurs seeking BEV funding, the bar remains exceptionally high. Successful pitches must demonstrate not just technical innovation, but clear paths to massive scale and transformative impact. The fund looks for solutions that can achieve costs competitive with incumbent technologies while delivering step-change improvements in performance, reliability, or sustainability metrics.
BEV’s roadmap also emphasizes solutions that address water access and quality in underserved markets. The fund seeks innovations that can work effectively in resource-constrained environments while building sustainable business models. Technologies must be robust, easily maintainable, and capable of operating with minimal infrastructure requirements.
Entrepreneurs should note BEV’s increasing focus on solutions that create multiple benefits across water, energy, and climate impact. The fund actively seeks water technologies that can help decarbonize other sectors or create valuable byproducts from waste streams. This aligns with the growing recognition that water innovation can unlock broader sustainability solutions.
Final words
Breakthrough Energy Ventures has emerged as more than just a deep-pocketed investor in the water technology landscape – it’s become a catalyst for accelerating the pace of water innovation. Through their rigorous approach to technical validation, patient capital deployment, and comprehensive support for portfolio companies, BEV is helping bridge the valley of death that has historically challenged water technology startups. For entrepreneurs, the fund’s investment thesis provides a clear roadmap for developing truly breakthrough solutions that can scale globally. For fellow investors, BEV’s methodology offers valuable lessons in how to evaluate and support water technology companies for both financial returns and lasting impact. As water challenges intensify globally, BEV’s model of ambitious, science-driven investing may well prove to be the template for how we fund the next generation of water solutions. The question isn’t whether breakthrough water technologies will emerge – it’s whether we’ll move fast enough to scale them when they do. BEV is betting big that we can, and they’re putting billions behind that conviction.
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