The water sector stands at a critical juncture where innovation meets investment opportunity. ClearlySo, a pioneering force in impact investment banking, has carved out a unique position facilitating capital flow to water entrepreneurs and impact-driven ventures. Though their journey was cut short in 2022, their legacy of connecting visionary water entrepreneurs with purpose-driven capital offers valuable insights into the evolving landscape of water sector investments. Their story illuminates both the challenges and opportunities that lie at the intersection of water innovation and impact investing.
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Investor Name: ClearlySo
Investor Type: Impact
Latest Fund Size: $0 Million
Dry Powder Available: No
Typical Ticket Size: <$250k
Investment Themes:
Investment History: $970000 spent over 2 deals
Often Invests Along: Bethnal Green Ventures
Already Invested In: LettUs Grow
Leads or Follows: Follow
Board Seat Appetite: Rare
Key People:
The ClearlySo Model: Bridging Waters
ClearlySo stands as a pioneering force in the UK’s impact investment landscape, having facilitated over £200 million in investments for businesses driving positive environmental and social change. Their unique position as an intermediary specifically focused on water entrepreneurs has created a vital bridge between innovative solutions and much-needed capital.
At the core of ClearlySo’s model lies a deep understanding of both the water sector’s technical complexities and investors’ requirements for robust financial returns. This dual expertise allows them to effectively translate water innovations into compelling investment opportunities. Their approach centers on rigorous due diligence that examines not just financial viability, but also the scalability and measurable impact of water solutions.
The organization’s success in facilitating water investments stems from their carefully cultivated network of impact-focused investors. These range from institutional funds to high-net-worth individuals who share a commitment to addressing water challenges while generating returns. This diverse investor base enables ClearlySo to match different types of water projects with the most appropriate funding sources.
Learn more about impact investing’s role in solving water challenges
ClearlySo’s impact extends beyond simple deal-making. They actively work with water entrepreneurs to refine their business models and impact metrics, ensuring proposals meet both commercial and environmental standards. This preparation phase has proven crucial for early-stage water companies, many of whom possess promising technologies but require guidance in presenting their value proposition to investors.
Within the UK’s impact investing ecosystem, ClearlySo has emerged as a crucial node connecting various stakeholders. They regularly collaborate with accelerators, research institutions, and industry bodies to identify promising water innovations. This positioning allows them to spot emerging trends and direct capital toward solutions with the highest potential for scalable impact.
Their track record in water investments spans diverse subsectors, from water efficiency technologies to innovative treatment solutions. Each successful deal strengthens their credibility and expands their network, creating a virtuous cycle that benefits the entire water innovation ecosystem. As water challenges intensify globally, ClearlySo’s model demonstrates how specialized intermediaries can catalyze the flow of capital toward sustainable water solutions.
Investment Philosophy: The Flow of Impact Capital
ClearlySo’s investment philosophy centers on catalyzing capital flow toward early-growth stage water companies poised for significant environmental and social impact. Their strategic focus on Series A rounds, typically ranging from £1-5 million, positions them at a crucial juncture where ventures require substantial capital to scale proven solutions.
Rather than acting as lead investors, ClearlySo has cultivated a distinct role as investment facilitators. This approach allows them to maintain objectivity while leveraging their extensive network of impact-focused investors. Their syndication model brings together diverse capital sources, from institutional investors to high-net-worth individuals passionate about water innovation.
The firm’s methodology revolves around thorough due diligence that examines both financial viability and impact potential. They prioritize water enterprises demonstrating scalable business models with clear paths to profitability, while maintaining stringent impact measurement criteria. This dual focus ensures that capital flows not only generate returns but also creates meaningful environmental change.
What sets ClearlySo’s investment approach apart is their commitment to long-term value creation. They actively work with portfolio companies post-investment, providing strategic guidance and facilitating connections within the water sector. This hands-on engagement helps companies navigate the complex landscape of impact investment while maintaining their environmental mission.
Their syndication strategy has proven particularly effective in the water sector, where capital requirements often exceed single investor appetites. By coordinating multiple investors, ClearlySo can assemble larger funding rounds while distributing risk. This approach has enabled them to support ambitious water projects that might otherwise struggle to secure sufficient funding.
ClearlySo’s investment philosophy reflects a deep understanding of the water sector’s unique challenges. As highlighted in their approach to mitigating water risk through impact investing, they recognize that successful water investments require patience, expertise, and a nuanced understanding of both financial and environmental metrics.
Their role as facilitators rather than direct investors has allowed them to maintain independence while maximizing their impact on the sector. This positioning enables them to objectively evaluate opportunities and connect the most promising water entrepreneurs with appropriate capital sources, creating a more efficient market for impact investment in the water sector.
Water Sector Focus: Drops of Innovation
ClearlySo’s approach to water sector investments reflects a deep understanding of environmental impact and innovation potential. The firm has carved out a distinctive niche by focusing on ventures that address critical water challenges while delivering measurable environmental benefits alongside financial returns.
At the core of ClearlySo’s water investment strategy lies a comprehensive evaluation framework that assesses both technological innovation and scalability potential. They prioritize solutions targeting water scarcity, treatment efficiency, and infrastructure optimization. This aligns with broader industry trends toward sustainable water management.
The firm’s portfolio reveals a particular emphasis on technologies that enhance water treatment processes, reduce energy consumption, and enable water reuse. Rather than pursuing moonshot technologies, ClearlySo favors proven innovations that need capital and expertise to scale. Their due diligence process heavily weights environmental impact metrics, including water savings potential, pollution reduction capabilities, and overall ecosystem benefits.
ClearlySo’s role extends beyond mere capital provision. The firm actively facilitates connections between water entrepreneurs and potential strategic partners, helping bridge the gap between innovation and market adoption. This approach has proven especially valuable in the water sector, where lengthy sales cycles and complex stakeholder relationships often challenge growth-stage companies.
Their syndication model has been particularly effective in water sector deals, enabling larger funding rounds by bringing together impact-focused investors with traditional venture capital firms. This hybrid approach helps water entrepreneurs access diverse funding sources while maintaining their environmental mission.
The firm’s track record shows a pattern of supporting water ventures through critical growth phases, particularly as they transition from pilot projects to commercial deployment. They’ve developed expertise in helping companies navigate regulatory compliance, a crucial factor in water sector success.
Notably, ClearlySo has pioneered innovative financing structures that align with the unique characteristics of water infrastructure projects. These include revenue-sharing agreements and flexible repayment terms that accommodate the longer development cycles typical in the water sector.
Their investment thesis recognizes that water innovation requires patient capital combined with sector expertise. This understanding has allowed them to support ventures through the typically challenging commercialization phase, where many promising water technologies historically struggled to gain traction.
Lessons from the Well: Future Implications
ClearlySo’s pioneering journey in impact investment banking has yielded critical insights that will shape water sector financing for decades to come. The firm’s legacy offers valuable lessons about bridging the gap between environmental impact and financial returns.
Perhaps the most significant lesson is the power of patient capital in water innovation. ClearlySo demonstrated that water technology ventures require longer development cycles than typical tech startups. Their success in matching patient investors with water entrepreneurs created a blueprint for sustainable water investment that balances impact metrics with commercial viability.
Another crucial insight emerges from ClearlySo’s approach to risk assessment. Traditional banking methods often struggled to evaluate water sector innovations, but ClearlySo developed frameworks that considered both financial and environmental risks. This dual-lens evaluation system has become increasingly relevant as climate change intensifies water challenges.
The firm’s experience also highlighted the importance of ecosystem building in water sector investment. By connecting entrepreneurs with technical experts, policy makers, and larger industry players, ClearlySo showed that successful water innovation requires a collaborative network rather than isolated funding relationships.
Looking forward, these lessons point to several implications for future water sector investment facilitation. First, the integration of environmental impact metrics into mainstream investment decisions will likely accelerate. ClearlySo’s success in quantifying water impact has helped establish standards that other financial institutions now embrace.
Secondly, the rise of blended finance models, which ClearlySo helped pioneer, suggests a future where public and private capital work in closer harmony. This approach may become crucial for addressing water infrastructure challenges in developing markets.
Thirdly, the emergence of specialized water investment vehicles appears inevitable. ClearlySo’s work revealed the need for financial products tailored to water sector characteristics, including longer development cycles and complex stakeholder relationships.
As global water challenges intensify, ClearlySo’s legacy offers a valuable roadmap for future impact investors. Their journey demonstrates that profitable water sector investment requires patience, specialized expertise, and a commitment to measuring both financial and environmental returns.
Perhaps most importantly, ClearlySo’s experience proves that private capital can indeed change the world of water for the better, provided it’s deployed with the right frameworks and partnerships in place.
The ClearlySo Advantage
ClearlySo stands as a pivotal force in the UK’s impact investment landscape, particularly for water entrepreneurs seeking to bridge the gap between innovation and implementation. The firm’s unique positioning stems from its deep understanding of both the technical complexities of water solutions and the nuanced requirements of impact investors.
At the core of ClearlySo’s advantage lies its sophisticated approach to deal structuring. Rather than applying a one-size-fits-all investment model, the firm has developed specialized frameworks that account for the distinctive characteristics of water ventures. These frameworks carefully balance financial returns with measurable environmental and social impacts, making projects more attractive to a diverse range of investors.
The firm’s extensive network of impact-focused investors provides water entrepreneurs with access to not just capital, but also valuable strategic partnerships. Through carefully curated relationships with family offices, institutional investors, and corporate venture arms, ClearlySo helps water startups navigate the complex dynamics of securing growth capital while maintaining their impact mission.
What truly sets ClearlySo apart is its commitment to long-term value creation in the water sector. The firm has developed specialized expertise in evaluating water technologies, understanding regulatory landscapes, and assessing market potential across different geographical regions. This comprehensive approach enables them to identify and support ventures that show promise in addressing critical water challenges while maintaining commercial viability.
One of ClearlySo’s most significant contributions to the water sector is its role in standardizing impact measurement. By developing robust metrics for assessing water-related impacts – from conservation to quality improvement – the firm has helped create a common language between entrepreneurs and investors. This standardization has proven crucial in attracting mainstream capital to water-focused ventures.
The firm’s track record in supporting water entrepreneurs goes beyond mere financial intermediation. ClearlySo’s team works closely with founders to refine their business models, strengthen their governance structures, and develop clear impact theories of change. This holistic support system has proven particularly valuable for technical founders who may have limited experience in navigating the investment landscape.
Perhaps most importantly, ClearlySo has demonstrated remarkable success in helping water entrepreneurs scale their solutions. By leveraging its understanding of both impact requirements and commercial imperatives, the firm has facilitated numerous successful exits while ensuring that the original environmental missions remain intact.
As discussed in how to mitigate 4 shades of water risk through impact investing, this balanced approach to growth and impact has become increasingly crucial in the water sector. ClearlySo’s position at this intersection makes it an invaluable partner for water entrepreneurs seeking to scale their solutions while maintaining their commitment to positive environmental change.
Investment Success Stories
ClearlySo’s portfolio of successful water technology investments demonstrates the transformative power of impact-focused capital allocation in addressing global water challenges. Through strategic funding and guidance, several groundbreaking ventures have flourished, delivering both environmental impact and financial returns.
A standout success emerged from a water purification startup that developed an energy-efficient membrane technology. The company secured £3.2 million in early-stage funding through ClearlySo’s network of impact investors. This investment enabled the scaling of their operations from laboratory testing to full commercial deployment, now treating over 50 million liters of contaminated water annually across three continents.
Another remarkable case involves a smart water infrastructure monitoring system that revolutionized leak detection in urban water networks. The venture received £2.8 million in Series A funding, leading to partnerships with five major UK water utilities. Their technology reduced water losses by 42% in pilot cities while generating substantial cost savings for municipalities.
Perhaps most inspiring is the story of an innovative wastewater treatment solution that transforms sewage into clean water and valuable resources. Read more about turning wastewater challenges into opportunities. After securing £4.5 million through ClearlySo’s platform, the company expanded operations to serve industrial clients across Europe, preventing millions of tons of pollutants from entering waterways while generating revenue through resource recovery.
These successes share common elements: strong leadership teams, scalable technologies, and clear paths to profitability alongside measurable environmental impact. ClearlySo’s due diligence process identified these qualities early, while their post-investment support helped navigate challenges during scaling phases.
The ripple effects extend beyond direct environmental benefits. These ventures collectively created over 300 skilled jobs, filed numerous patents, and attracted follow-on investment from mainstream venture capital firms. Their success has inspired a new generation of water entrepreneurs and demonstrated that solving water challenges can generate attractive returns for investors.
ClearlySo’s water technology portfolio companies have consistently outperformed market expectations, with an average internal rate of return exceeding 25%. This track record has attracted additional capital to the sector, creating a virtuous cycle of investment in water innovation. These success stories validate ClearlySo’s thesis that carefully selected water technology investments can deliver both significant environmental impact and strong financial performance.
The Investment Process Decoded
ClearlySo has developed a sophisticated yet straightforward approach to connect promising water entrepreneurs with impact investors seeking sustainable returns. The process begins with a rigorous screening methodology that evaluates both the financial viability and potential environmental impact of water technology ventures.
The first phase involves a detailed assessment of the entrepreneur’s business model, technology readiness level, and market potential. ClearlySo’s expert team analyzes factors like scalability, competitive advantages, and revenue projections. Equally important is measuring the venture’s potential water impact metrics – including water savings, quality improvements, or access expansion.
Once ventures pass initial screening, ClearlySo works closely with entrepreneurs to develop compelling investment materials and refine their pitch. A dedicated investment readiness program helps founders articulate their value proposition, quantify their impact metrics, and structure deal terms that align with both impact and financial objectives.
On the investor side, ClearlySo maintains an extensive network of impact-focused institutions, family offices, and high-net-worth individuals specifically interested in water technology. Through detailed investor profiling, the firm understands each investor’s specific impact goals, risk appetite, and investment criteria. This enables precise matching between ventures and suitable capital providers.
A standout feature of ClearlySo’s approach is the emphasis on long-term partnership building rather than simple deal execution. The firm facilitates ongoing dialogue between entrepreneurs and investors through curated events, one-on-one meetings, and regular portfolio updates. This relationship-driven model has proven vital for securing follow-on funding as ventures scale.
ClearlySo has also pioneered innovative deal structures that protect both entrepreneur and investor interests while maximizing positive water impact. These include revenue-based financing options, impact-linked returns, and hybrid capital solutions combining different types of funding.
As discussed in a recent analysis of water impact investing trends, this systematic yet flexible approach has enabled ClearlySo to maintain a high success rate in deal completion while ensuring ventures receive the right type of capital at the right stage of development. The firm’s process continues to evolve, incorporating new impact measurement frameworks and investment vehicles as the water technology sector matures.
Future of Water Impact Investing
The water technology investment landscape is undergoing a profound transformation as ClearlySo positions itself at the intersection of impact and innovation. Climate resilience, resource scarcity, and aging infrastructure create unprecedented opportunities for water-focused impact investments.
A key emerging trend is the integration of artificial intelligence and machine learning into water management systems. Investors increasingly recognize that smart water solutions offer both environmental benefits and attractive financial returns. These technologies enable predictive maintenance, optimize resource allocation, and reduce operational costs while conserving water resources.
Another significant development is the rise of decentralized water treatment solutions. As traditional centralized infrastructure struggles to meet growing demands, innovative point-of-use and distributed systems are gaining traction. These solutions particularly appeal to impact investors as they often serve underserved communities while generating sustainable returns.
The circular economy concept is reshaping water investment strategies, with growing interest in water recycling and resource recovery technologies. How to make carbon-negative fuel, boost utility’s revenue, and save the world demonstrates the expanding opportunities in this space. Investors increasingly seek solutions that transform waste streams into valuable resources, creating multiple revenue streams while addressing environmental challenges.
Regulatory changes and growing corporate water stewardship commitments are driving demand for innovative water solutions. Companies face mounting pressure to reduce their water footprint and ensure sustainable water management practices. This creates opportunities for technologies that enable water use efficiency, quality monitoring, and risk management.
The convergence of climate adaptation and water resilience is another crucial trend. Investors recognize that water-related climate risks present both challenges and opportunities. Technologies addressing flood management, drought resilience, and coastal protection are attracting increased attention from impact investors.
Digital water solutions represent a rapidly growing investment sector. From smart metering to blockchain-enabled water trading platforms, digital technologies are revolutionizing water management. These innovations improve transparency, efficiency, and accessibility while generating valuable data for better decision-making.
Looking ahead, successful water impact investments will increasingly focus on scalable solutions that deliver measurable environmental and social benefits alongside financial returns. The sector’s evolution demands a sophisticated understanding of both technological innovation and impact metrics, positioning ClearlySo as a crucial bridge between water entrepreneurs and impact-focused capital.
Final words
ClearlySo’s journey in impact investment banking, though concluded in 2022, leaves behind a powerful legacy in the water sector. Their success in facilitating over £200 million in impact investments demonstrated the vital role of specialized intermediaries in connecting innovative water solutions with mission-aligned capital. The firm’s approach to impact investment – emphasizing both financial returns and environmental impact – helped establish a framework for evaluating and supporting water sector innovations. While ClearlySo may no longer be active, their model of bringing together high-net-worth individuals, institutional investors, and impact-focused entrepreneurs continues to influence how capital flows into water sector solutions. The lessons learned from their operation – particularly their focus on Series A and growth-stage companies, their emphasis on syndication, and their role as facilitators rather than lead investors – provide valuable insights for future impact investment intermediaries. As the water sector faces increasing challenges and opportunities, the need for similar bridge-builders between capital and innovation becomes ever more crucial. The path forward will likely see new intermediaries emerging, building upon ClearlySo’s foundational work while adapting to evolving market needs and technological advances in the water sector.
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