Water infrastructure hasn’t seen meaningful innovation in decades, but Ember Infrastructure is changing that narrative. By combining deep industry expertise with patient capital deployment, this investment powerhouse is pioneering a new approach to water technology advancement. Their unique strategy focuses on identifying and scaling breakthrough solutions that address critical challenges in water access, treatment, and distribution. For entrepreneurs and impact investors alike, understanding Ember’s methodology opens doors to unprecedented opportunities in the water sector.
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Investor Name: Ember Infrastructure
Investor Type: PE
Latest Fund Size: $840 Million
Dry Powder Available: Yes
Typical Ticket Size: $30M – $75M
Investment Themes: stormwater management, decentralized wastewater treatment, industrial water treatment & remediation
Investment History: $ spent over deals
Often Invests Along:
Already Invested In: H2O Innovation
Leads or Follows: Lead
Board Seat Appetite: High
Key People: Elena Savostianova, Bob Kelly, Mary Weisskopf, Caleb Powers
The Ember Advantage: A New Investment Philosophy
Ember’s investment approach represents a fundamental shift in how water infrastructure and technology are funded and scaled. By merging traditional infrastructure investment principles with technology venture scaling methodologies, Ember has crafted a unique framework that addresses the water sector’s dual need for reliability and innovation.
At its core, Ember’s philosophy recognizes that water infrastructure investments require patient capital with long-term horizons – typically 15-20 years. However, rather than simply following the conventional infrastructure investment playbook of seeking stable returns from proven assets, Ember actively integrates emerging technologies that can dramatically improve efficiency and sustainability.
This hybrid model enables Ember to capture the stability of infrastructure assets while simultaneously accelerating the adoption of breakthrough water technologies. By carefully evaluating both the underlying infrastructure requirements and the potential technology applications, Ember creates investment opportunities that deliver both reliable returns and meaningful impact.
A key differentiator in Ember’s approach is its focus on scalability from day one. Rather than treating technology and infrastructure as separate investment tracks, Ember specifically seeks out opportunities where innovative technologies can be deployed at scale across multiple infrastructure assets. This creates a powerful multiplier effect – successful technology implementations can be rapidly replicated across Ember’s infrastructure portfolio.
The firm has developed sophisticated frameworks for evaluating both the technical and commercial risks of water technologies, while maintaining the disciplined approach to due diligence that infrastructure investing demands. This enables Ember to take calculated risks on promising technologies while ensuring the fundamental stability of its infrastructure investments is preserved.
Perhaps most importantly, Ember’s investment philosophy recognizes that addressing global water challenges requires more than just capital – it requires actively connecting technology innovators with large-scale infrastructure opportunities. By bridging this historical divide between infrastructure and technology investing, Ember has created a powerful new model for accelerating water innovation while building resilient water systems.
Technology Selection: Finding Tomorrow’s Water Solutions
Ember’s technology selection process represents a sophisticated framework for identifying and evaluating promising water innovations that can scale to meet global challenges. The firm employs a multi-layered assessment approach that combines rigorous technical analysis with market validation and implementation feasibility.
At the core of the selection process lies a comprehensive technical evaluation matrix. Each potential technology undergoes detailed scrutiny across key performance indicators, including treatment efficacy, energy efficiency, operational reliability, and environmental impact. Ember’s engineering team conducts extensive bench-scale testing and pilot demonstrations to validate performance claims and identify potential scaling challenges.
What sets Ember’s approach apart is its emphasis on market-driven innovation. The firm actively engages with utilities, industrial users, and other stakeholders to understand real-world pain points and validate market demand. This customer-centric lens helps identify technologies that not only perform well technically but also address pressing commercial needs.
The evaluation process places significant weight on scalability metrics. Technologies must demonstrate clear pathways to cost-effective deployment at municipal and industrial scales. This includes assessing manufacturing capabilities, supply chain resilience, and implementation requirements. Ember’s team analyzes historical scaling attempts in the water sector to avoid common pitfalls.
Sustainability considerations are deeply embedded in the selection framework. Beyond conventional environmental metrics, Ember evaluates technologies’ contributions to circular economy principles, resource recovery potential, and alignment with climate resilience goals. This forward-looking approach ensures selected solutions can thrive in an increasingly sustainability-focused market.
The firm maintains strict stage-gates throughout the evaluation process, with technologies advancing only after meeting predetermined technical and commercial milestones. This disciplined approach helps optimize resource allocation and increases the success rate of supported innovations. Regular review cycles ensure continued alignment with evolving market needs and technological capabilities.
Partnership Model: Building Sustainable Growth
Ember’s partnership model represents a paradigm shift in how water technology companies scale and succeed. The firm’s approach centers on creating symbiotic relationships between innovative entrepreneurs and established industry leaders, fostering an ecosystem where both parties thrive.
At the core of this model lies a deep understanding of market dynamics. Rather than pushing startups to compete head-on with industry giants, Ember facilitates strategic collaborations that leverage each party’s strengths. Entrepreneurs bring agile innovation and cutting-edge solutions, while established players contribute market access, manufacturing capabilities, and decades of operational expertise.
The firm employs a structured yet flexible framework to forge these partnerships. Initial matchmaking focuses on identifying complementary capabilities and aligned objectives. A thorough evaluation process, detailed in the previous chapter about technology selection, ensures that only the most promising innovations reach this stage.
Ember then takes an active role in partnership development, providing guidance on everything from intellectual property protection to revenue-sharing models. This hands-on approach helps navigate common pitfalls that often derail collaborations between companies of disparate sizes and cultures.
What sets Ember’s partnership model apart is its emphasis on mutual value creation. Rather than pursuing traditional exit strategies, the firm focuses on building sustainable, long-term relationships. This approach allows startups to maintain their independence and innovation culture while accessing the resources needed for growth.
The model also addresses a critical gap in the water industry – the traditionally slow pace of technology adoption. By connecting innovators directly with established market players, Ember accelerates the path to commercial implementation. This benefits not only the partner companies but also contributes to broader industry transformation.
Crucially, these partnerships extend beyond simple supplier-customer relationships. They often involve joint development initiatives, shared market intelligence, and collaborative problem-solving. This deep integration ensures that innovations are refined and scaled with real-world applications in mind.
Impact Metrics: Measuring Success Beyond Returns
Ember’s approach to measuring impact reflects a sophisticated understanding that true success in water technology investments requires looking beyond pure financial returns. The firm has developed a comprehensive impact measurement framework that evaluates both quantitative and qualitative outcomes across multiple dimensions.
At the foundation lies a rigorous assessment of water-specific metrics – tracking gallons saved, quality improved, and access expanded through portfolio companies’ innovations. But Ember pushes further, examining how these water impacts cascade into broader environmental and social benefits. Carbon emissions avoided through energy-efficient treatment processes, ecosystem services preserved through water conservation, and community health outcomes improved through enhanced water quality all factor into the evaluation.
The firm maintains detailed impact scorecards for each investment, benchmarking progress against UN Sustainable Development Goals while incorporating metrics uniquely relevant to specific water technology applications. This granular tracking enables data-driven optimization of both financial and impact performance across the portfolio.
Crucially, Ember has pioneered methods to monetize traditionally hard-to-quantify environmental and social returns. By developing frameworks to assign economic value to impacts like improved watershed health or reduced water stress, the firm better aligns impact goals with market incentives. As highlighted in how to mitigate 4 shades of water risk through impact investing, this approach helps demonstrate that positive impact and strong returns can be mutually reinforcing.
The firm’s impact measurement system also emphasizes accountability and continuous improvement. Regular third-party audits verify reported metrics, while feedback loops between impact assessment and investment strategy ensure lessons learned shape future decisions. This commitment to robust measurement has helped Ember identify which innovations deliver the greatest impact per dollar invested, enabling more effective capital allocation.
By taking this comprehensive view of success metrics, Ember has built a track record demonstrating that water technology investments can generate compelling returns while driving meaningful progress on global water challenges. The firm’s impact measurement approach serves as a model for how investors can rigorously evaluate and optimize both financial and environmental performance.
Case Studies: Success Stories in Water Innovation
Ember’s strategic investments have catalyzed remarkable transformations across the water technology landscape. A standout example is their backing of an advanced membrane filtration system that revolutionized wastewater treatment in drought-stricken regions. This technology reduced energy consumption by 40% while increasing water recovery rates to 95%, demonstrating how financial returns can align perfectly with environmental impact.
Another compelling success story emerged from Ember’s investment in smart water infrastructure. By deploying AI-powered leak detection systems across three major metropolitan areas, their portfolio company helped utilities prevent the loss of over 2.8 billion gallons of water annually. The initiative generated a 300% return on investment while significantly reducing urban water waste.
Ember’s commitment to innovation extends to agricultural water management. Their investment in precision irrigation technology has enabled farmers to reduce water usage by 30% while maintaining or improving crop yields. This technology now serves over 100,000 acres of farmland, proving that water conservation and agricultural productivity can coexist profitably.
Perhaps most impressive is Ember’s role in scaling a groundbreaking water quality monitoring platform. This system combines real-time sensors with predictive analytics to detect contamination events hours before traditional methods. The technology has been adopted by over 50 utilities, protecting millions of consumers while generating substantial cost savings for water providers.
The firm’s impact in industrial water treatment showcases their ability to drive both environmental and economic value. Their investment in advanced oxidation technology has enabled manufacturers to reduce toxic discharge by 85% while recycling 95% of process water. This solution has been implemented across multiple industries, from semiconductors to food processing, demonstrating broad market applicability.
Learn more about successful water technology commercialization strategies
Future Vision: Scaling Water Solutions Globally
Building on the proven successes showcased in our case studies, Ember Infrastructure’s global scaling strategy centers on a systematic approach to expanding water technology solutions across international markets. The firm leverages a powerful combination of strategic partnerships, localized adaptation frameworks, and innovative financing models to accelerate worldwide deployment.
The foundation of Ember’s scaling methodology rests on establishing robust regional partnerships with utilities, industrial players, and local water technology providers. These partnerships create natural pathways for introducing proven solutions while navigating regulatory requirements and cultural nuances unique to each market. The firm has developed a proprietary assessment framework that evaluates both market readiness and solution adaptability to ensure optimal fit.
A key differentiator in Ember’s approach is their “technology localization protocol” – a systematic process for adapting solutions to regional contexts while maintaining core performance capabilities. This includes modifying designs for local manufacturing capabilities, adjusting operational parameters for varying environmental conditions, and optimizing cost structures for different economic realities.
To address the critical financing barriers that often impede global expansion, Ember has pioneered innovative funding mechanisms that blend traditional project finance with results-based approaches. As highlighted in How to mitigate 4 shades of water risk through impact investing, this enables faster deployment while ensuring sustainable operations.
The firm maintains a dedicated team of global water market experts who continuously monitor evolving needs and opportunities across regions. This intelligence guides both technology adaptation priorities and market entry sequencing. Their data-driven approach helps portfolio companies optimize their expansion paths while minimizing risks.
Ember’s scaling vision extends beyond individual technology deployment to catalyzing broader market transformation. Through strategic knowledge sharing and capacity building initiatives, they work to develop local expertise and strengthen water technology ecosystems in target markets. This creates a multiplier effect that accelerates adoption of innovative water solutions globally.
The Water Infrastructure Investment Thesis
Ember’s strategic approach to water infrastructure investment centers on identifying opportunities where technological innovation intersects with critical infrastructure needs. The firm recognizes that aging water systems, climate pressures, and population growth create an urgent need for transformative solutions that can deliver both environmental impact and attractive financial returns.
At the core of Ember’s investment thesis lies a deep understanding that water infrastructure represents an essential but historically underinvested sector. Rather than pursuing incremental improvements, the firm targets technologies and business models that can fundamentally reshape how water systems operate. This includes solutions for smart water management, advanced treatment processes, and infrastructure optimization.
The firm employs a rigorous evaluation framework that examines potential investments through multiple lenses. Technical feasibility and market readiness form the foundation, but Ember places equal emphasis on scalability and implementation potential. This balanced approach helps identify opportunities that can deliver meaningful impact while generating sustainable returns.
Ember has developed particular expertise in identifying companies at the convergence of digital technology and physical infrastructure. By focusing on this intersection, the firm can support solutions that enhance operational efficiency, reduce water losses, and improve resource management – all while maintaining the reliability that water systems demand.
The firm’s thesis is anchored in the recognition that water challenges require systemic change. This perspective drives investments in platforms and technologies that can be deployed across multiple markets and use cases. The approach allows portfolio companies to achieve economies of scale while addressing diverse water infrastructure needs.
Critically, Ember maintains a long-term investment horizon aligned with the infrastructure upgrade cycles of water utilities and industrial users. This patience enables the firm to support technologies through development and early adoption phases, ultimately achieving the scale needed to transform water infrastructure systems.
Technology Innovation in Traditional Infrastructure
Transforming decades-old water infrastructure requires a delicate balance between proven reliability and cutting-edge innovation. Through strategic deployment of smart sensors, advanced analytics, and automated control systems, Ember is revolutionizing how traditional water assets operate and perform.
At the core of this transformation lies an extensive sensor network that monitors critical parameters in real-time. High-precision IoT devices track everything from flow rates and pressure levels to water quality metrics and equipment performance. This granular data feeds into sophisticated artificial intelligence systems that can detect subtle patterns and anomalies human operators might miss.
What truly sets Ember’s approach apart is how they leverage this technology backbone to enable predictive maintenance and optimization. By analyzing historical performance data alongside real-time readings, AI algorithms can forecast potential equipment failures days or weeks in advance. This allows utilities to perform targeted maintenance before costly breakdowns occur, dramatically reducing both repair expenses and service disruptions.
Beyond individual asset management, Ember’s systems take a holistic view of entire water networks. Advanced hydraulic modeling and digital twin technology create virtual replicas of physical infrastructure that can simulate different scenarios and optimize operations across the whole system. When integrated with automated control capabilities, these models enable dynamic responses to changing conditions – redirecting flow patterns, adjusting treatment processes, and balancing supply and demand in real-time.
Critically, Ember preserves the core functionality of existing infrastructure while augmenting it with new capabilities. Rather than requiring wholesale replacement of proven systems, their technology layer works alongside legacy equipment, extending its useful life while improving performance. This pragmatic approach makes adoption more feasible for budget-constrained utilities.
The results speak for themselves – utilities implementing Ember’s technology innovations typically see 15-30% reductions in energy usage, 20-40% lower maintenance costs, and up to 50% fewer unexpected system failures. As explored in how-to-clear-remote-places-problems-solve-environmental-issues-and-revive-wastewater-in-a-blast, these efficiency gains translate directly into both environmental and financial benefits.
The Impact Measurement Framework
Ember’s innovative approach to impact measurement represents a paradigm shift in water infrastructure investment. The firm has developed a comprehensive framework that quantifies both environmental and social returns alongside traditional financial metrics, creating a triple bottom line assessment that guides investment decisions.
At the core of their methodology lies a proprietary scoring system that evaluates water conservation, energy efficiency, and community benefits. Projects receive detailed assessments across multiple dimensions, including gallons of water saved, kilowatt-hours reduced, and number of people gaining improved water access. Read about measuring impact here.
The framework incorporates real-time monitoring through IoT sensors and advanced analytics, enabling continuous tracking of impact metrics. This data-driven approach allows Ember to validate environmental claims and adjust strategies based on actual performance rather than projected outcomes. The system also measures indirect benefits such as reduced carbon emissions from decreased energy usage and improved public health indicators in served communities.
Ember has pioneered standardized reporting protocols that align with global sustainability frameworks while maintaining granular project-level insights. Their quarterly impact reports combine quantitative metrics with qualitative assessments of community engagement and technological innovation. This comprehensive view helps stakeholders understand both the immediate and long-term effects of water infrastructure investments.
The firm’s commitment to transparency extends to sharing methodologies with the broader investment community. By establishing clear benchmarks and standardized measurement approaches, Ember is helping create industry-wide standards for impact assessment in water technology investments. Their framework has become a model for other investment firms seeking to balance financial returns with meaningful environmental and social impact in the water sector.
Partnership Model with Water Entrepreneurs
Ember’s partnership model represents a innovative approach to scaling water technology solutions through deep collaboration with entrepreneurs. By combining financial investment with hands-on support, Ember creates a nurturing environment where promising water innovations can flourish and achieve widespread implementation.
At the core of Ember’s model is a focus on strategic alignment and value creation. Rather than taking a purely financial stance, Ember works closely with entrepreneurs to refine their business models, strengthen their market positioning, and accelerate commercial traction. This involves detailed assessments of technology readiness, market fit, and scalability potential before making investment decisions.
The firm provides multi-faceted support that goes beyond capital deployment. Technical experts within Ember help entrepreneurs optimize their solutions and navigate complex regulatory requirements. The firm’s extensive network connects portfolio companies with potential customers, strategic partners, and industry advisors who can propel growth. This comprehensive support system dramatically improves the success rate of water innovation projects.
Ember also takes an active role in structuring partnerships and projects to ensure long-term viability. Drawing from deep infrastructure expertise, the firm helps entrepreneurs design implementation frameworks that effectively balance risk and returns. This often involves innovative financing mechanisms, performance guarantees, and clearly defined success metrics that align incentives across stakeholders.
The firm’s dedication to supporting entrepreneurs through multiple growth stages sets it apart in the water sector. Rather than seeking quick exits, Ember maintains long-term partnerships focused on achieving meaningful scale and impact. This patient capital approach, combined with active operational support, creates the conditions necessary for transformative water solutions to reach their full potential.
As explored in Can Private Capital Change the World of Water for the Better?, this collaborative model between investors and entrepreneurs is essential for addressing global water challenges. Through carefully structured partnerships that emphasize both commercial success and positive impact, Ember demonstrates how strategic investment can accelerate the adoption of critical water innovations.
Risk Mitigation Strategies
Ember’s sophisticated approach to risk management in water infrastructure investments combines rigorous due diligence with innovative financial structuring to protect returns while advancing critical water solutions. By implementing a multi-layered risk assessment framework, Ember evaluates technological, operational, and market risks across their portfolio.
The firm’s risk mitigation starts with comprehensive technical validation of water technologies. Working with independent engineering firms and industry experts, Ember thoroughly vets the scientific principles, operational track record, and scalability potential of each innovation. This technical due diligence is complemented by detailed market analysis to verify commercial viability and identify key adoption barriers.
Operational risk management focuses on building robust implementation capabilities. Through partnerships with experienced operators and utilities, Ember ensures proper system integration, maintenance protocols, and performance monitoring. The firm maintains strict operational oversight through regular audits, KPI tracking, and continuous improvement programs.
Market risk is addressed through strategic diversification across water subsectors, geographies, and development stages. By maintaining a balanced portfolio spanning treatment technologies, infrastructure upgrades, and digital solutions, Ember reduces exposure to sector-specific downturns. The firm also structures innovative financing mechanisms, including performance-based contracts and risk-sharing arrangements with implementation partners.
Financial engineering plays a crucial role in Ember’s risk mitigation strategy. The firm employs creative capital stacking, blending institutional investment with strategic corporate funding and government incentives. This approach helps optimize the risk-return profile while maintaining competitive yields for investors. Learn more about innovative water investment strategies
Ember’s systematic approach to risk management has enabled the firm to consistently deliver market-rate returns while advancing transformative water solutions. By carefully balancing risk mitigation with innovation potential, Ember demonstrates that water infrastructure investments can achieve both financial and impact objectives.
Future of Water Infrastructure Investment
Investment in water infrastructure is undergoing a dramatic transformation as emerging technologies and innovative financing models reshape the sector’s landscape. Smart infrastructure solutions powered by artificial intelligence and IoT sensors are enabling predictive maintenance and optimization of water systems at unprecedented scales. These developments are creating compelling opportunities for forward-thinking investors.
The rising adoption of digital twins and advanced analytics is fundamentally changing how utilities plan and operate their assets. By creating virtual replicas of physical infrastructure, operators can simulate different scenarios and optimize performance in real-time. This technology-enabled approach is driving significant efficiency gains while reducing operational risks.
Innovative financing mechanisms are also evolving to meet the sector’s massive capital needs. Green bonds and sustainability-linked loans are gaining traction as investors seek both financial returns and positive environmental impact. Public-private partnerships are being reimagined through performance-based contracts that align incentives between stakeholders.
Ember’s vision centers on catalyzing transformative investments in next-generation water infrastructure. The firm recognizes that solving global water challenges requires deploying capital strategically across the entire water value chain. This includes backing breakthrough technologies in areas like advanced treatment processes, resource recovery, and distributed infrastructure.
Looking ahead, several key trends will likely shape investment opportunities. Climate resilience will become increasingly critical as utilities adapt to extreme weather events. The water-energy nexus will drive investments in energy-efficient technologies and renewable power integration. Additionally, nature-based solutions will complement traditional gray infrastructure as awareness of their benefits grows.
The intersection of technology and sustainability principles is creating unprecedented potential for value creation in water infrastructure. By taking a systems-level approach and embracing innovation, investors can generate attractive returns while advancing water security and environmental stewardship. Those who recognize and act on these emerging opportunities stand to benefit significantly as the sector continues its evolution.
Final words
As we’ve explored throughout this deep dive into Ember Infrastructure’s approach to water technology investment, it’s clear that their unique combination of patient capital, technical expertise, and strategic partnership development is creating unprecedented opportunities in the water sector. Their success in identifying and scaling breakthrough solutions demonstrates that profitable water infrastructure investment can go hand-in-hand with meaningful environmental impact. For entrepreneurs, Ember represents more than just a funding source – they’re a partner in building the future of water technology. For impact investors, their track record proves that disciplined investment in water infrastructure can generate both substantial returns and measurable environmental benefits. The water sector stands at a crucial inflection point, and Ember Infrastructure is positioning itself – and its partners – to lead the next wave of innovation.
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