With €400 million in committed capital and a razor-sharp focus on sustainable innovation, Evonik Venture Capital stands as a formidable force in water technology investment. From their headquarters in Hanau, Germany, this corporate venture arm has been strategically deploying capital across early to growth-stage companies, particularly those revolutionizing water treatment and circular economy solutions. Their sweet spot? Writing checks between €5-15 million for breakthrough technologies that blend environmental impact with commercial viability. As water entrepreneurs and impact investors scan the horizon for strategic partners, understanding Evonik’s investment thesis, operational style, and track record becomes crucial for navigating the path to successful partnerships.
Evonik Venture Capital is part of my Ultimate Water Investor Database, check it out!
Investor Name: Evonik Venture Capital
Investor Type: CVC
Latest Fund Size: $440 Million
Dry Powder Available: Yes
Typical Ticket Size: $3M – $10M
Investment Themes: decentralized water treatment, sustainable water treatment, broad water innovation funds
Investment History: $6000000 spent over 2 deals
Often Invests Along: AP Ventures
Already Invested In: HPNow
Leads or Follows: Follow
Board Seat Appetite: Unknown
Key People: Dr. Bernhard Mohr, Jonas Ide
The Strategic Playbook
Evonik Venture Capital’s approach to water technology investments reflects a sophisticated understanding of the sector’s evolving landscape. With €400 million in investment firepower, the fund strategically positions itself at the intersection of sustainability and innovation, particularly in water solutions.
The fund’s investment thesis centers on decentralized water treatment technologies, recognizing the growing need for localized solutions in an increasingly water-stressed world. Their typical investment tickets range from €5 million to €15 million, allowing them to take meaningful positions while maintaining portfolio diversity. This sweet spot enables them to support companies beyond the early seed stage but still capitalize on significant growth potential.
What sets Evonik’s strategy apart is their deliberate focus on sustainable water solutions that can scale. The fund prioritizes technologies that address critical challenges like water reuse, energy efficiency in treatment processes, and advanced separation methods. This aligns with broader market trends toward resource recovery and circular economy principles in water management.
Their stage preferences reveal a balanced approach to risk management. While they occasionally participate in Series A rounds, Evonik shows particular interest in Series B and C investments, where companies have proven their technology and require capital for commercial expansion. This strategy allows them to mitigate technology risk while still capturing significant upside potential.
Evonik’s investment criteria extend beyond pure financial metrics. They seek companies with strong intellectual property positions and clear paths to commercialization. The fund places particular emphasis on solutions that can demonstrate measurable environmental impact alongside commercial viability. This dual-bottom-line approach has proven especially relevant as water scarcity and quality issues intensify globally.
Their strategic playbook also reveals a preference for technologies that complement Evonik’s core business strengths in specialty chemicals and materials. This creates natural synergies for portfolio companies to leverage Evonik’s industrial expertise and global market access. Yet they maintain flexibility to invest in breakthrough technologies that may open entirely new market opportunities.
A significant aspect of their strategy focuses on water solutions that promise both environmental and economic returns. As outlined in how to mitigate 4 shades of water risk through impact investing, this balanced approach has become increasingly critical for successful water technology investments.
Beyond Capital: The Partnership Approach
As one of the most active corporate venture funds in water technology, Evonik Venture Capital has mastered the art of collaborative investing. Their approach extends far beyond writing checks, creating a powerful ecosystem that amplifies the impact of their €400M investment capacity.
At the core of their strategy lies a strong focus on syndicate investing, where Evonik joins forces with like-minded venture capital firms to support promising water technology startups. This collaborative model allows them to leverage complementary expertise while distributing risk. Their impressive 2.33 follow-on investment ratio demonstrates not just initial confidence in portfolio companies, but sustained, long-term support through multiple funding rounds.
What truly sets Evonik apart is their value-add beyond pure financial investment. Drawing on decades of industrial expertise, they offer portfolio companies access to world-class R&D facilities, pilot testing capabilities, and technical validation support. This technical partnership often proves invaluable for early-stage companies working to scale novel water treatment technologies.
Evonik’s global commercial network represents another powerful asset for portfolio companies. Through strategic introductions and collaborative pilots with Evonik’s extensive customer base, startups can accelerate their path to market and validate their solutions in real-world applications. This commercial leverage has proven particularly valuable for companies developing advanced water treatment and recycling technologies.
The fund’s partnership approach extends to talent development and recruitment support. Portfolio companies can tap into Evonik’s deep pool of technical and operational expertise through secondments, advisory roles, and strategic hiring support. This human capital element often proves as valuable as financial capital for growing water technology firms.
As noted in an analysis of successful corporate venture strategies, Evonik’s collaborative model enables them to maintain strategic flexibility while maximizing impact. Rather than pursuing narrow corporate interests, they foster an open innovation ecosystem that benefits the broader water technology landscape.
Their approach to intellectual property and technology licensing further reinforces this collaborative spirit. Portfolio companies maintain independence while benefiting from access to Evonik’s extensive patent portfolio and IP expertise when strategically advantageous. This balanced approach helps startups protect and monetize their innovations while accelerating time-to-market.
Portfolio Success Stories
Evonik Venture Capital’s investment portfolio showcases its strategic commitment to transformative water technologies, with HPNow emerging as a standout example of their investment thesis in action. This Denmark-based company exemplifies how Evonik identifies and nurtures innovations that address critical sustainability challenges in water treatment.
HPNow’s breakthrough technology enables on-site hydrogen peroxide generation, eliminating the need for hazardous chemical transport and storage. This aligns perfectly with Evonik’s focus on sustainable chemistry and decentralized water treatment solutions. The investment has proven particularly successful as the technology reduces carbon footprint while improving safety and operational efficiency.
Beyond HPNow, Evonik’s water technology portfolio demonstrates remarkable diversity and strategic alignment. Their investments consistently target solutions that reduce energy consumption, minimize chemical usage, or enable water reuse – three critical pillars of sustainable water management. Several portfolio companies have achieved significant milestones in membrane technology, advanced oxidation processes, and digital water management systems.
The success of these investments stems from Evonik’s distinctive approach to portfolio management. Rather than pursuing quick exits, they focus on building long-term value through strategic partnerships. This approach has resulted in multiple successful commercialization stories, where portfolio companies have leveraged Evonik’s extensive industry networks and technical expertise to scale their solutions globally.
What sets these success stories apart is how they’ve translated into tangible environmental impact. Portfolio companies collectively contribute to significant reductions in water consumption, energy usage, and chemical waste across various industries. For instance, one investment in advanced membrane technology has enabled industrial customers to reduce their water footprint by up to 30% while simultaneously cutting energy costs.
Consistent with their sustainability focus, Evonik has also prioritized investments in circular economy solutions within the water sector. These include technologies for resource recovery from wastewater and innovations in water reuse systems. This strategic alignment with sustainability trends has proven particularly prescient, as regulatory pressures and market demands increasingly favor environmentally conscious solutions.
The portfolio’s success metrics extend beyond financial returns. Environmental impact indicators, technology adoption rates, and market penetration achievements demonstrate how these investments are actively reshaping water treatment practices across industries. This multi-dimensional approach to measuring success ensures that portfolio companies deliver both financial returns and meaningful contributions to sustainability goals.
Future Horizons
Evonik Venture Capital’s investment trajectory signals a transformative shift in water technology, with digital solutions and advanced treatment methods taking center stage in their strategic vision. At the forefront of their emerging investment themes is the integration of artificial intelligence and machine learning into water infrastructure management.
The fund recognizes that intelligent water management systems will be crucial for optimizing resource allocation and predictive maintenance. These systems can analyze vast amounts of operational data to detect inefficiencies, predict equipment failures, and automate treatment processes with unprecedented precision.
In the realm of advanced treatment solutions, Evonik is particularly focused on breakthrough technologies that address emerging contaminants. Their investment strategy emphasizes solutions that can tackle complex pollutants while maintaining energy efficiency and operational sustainability. This includes novel membrane technologies that offer superior selectivity and reduced fouling, as well as innovative approaches to resource recovery from wastewater streams.
The fund’s commitment to circular economy principles is evident in their interest in technologies that transform waste streams into valuable resources. This includes processes for recovering nutrients, minerals, and energy from wastewater, aligning with global sustainability goals while creating new revenue streams for utilities and industrial operators.
A notable shift in their investment approach is the emphasis on scalable solutions that can be rapidly deployed across different markets and applications. This focus on scalability reflects a mature understanding of the water sector’s needs – technologies must not only be innovative but also practical and economically viable for widespread adoption.
Another emerging theme is the integration of decentralized treatment systems with smart monitoring capabilities. These systems promise to revolutionize water management in remote locations and developing regions, offering robust treatment solutions that can operate with minimal infrastructure requirements.
The fund’s pipeline also includes technologies addressing water scarcity through advanced desalination and water reuse solutions. These investments focus on reducing energy consumption and environmental impact while increasing treatment efficiency, particularly in regions facing severe water stress.
As climate change continues to impact water resources globally, Evonik’s investment strategy increasingly favors technologies that enhance resilience and adaptability in water infrastructure. This includes solutions for flood management, drought mitigation, and climate-resilient water supply systems.
The Strategic Catalyst: Evonik’s Investment Philosophy
At the intersection of chemical engineering expertise and venture capital lies Evonik’s distinctive approach to water technology investments. With decades of experience in industrial chemistry and materials science, Evonik brings a uniquely informed perspective to evaluating and nurturing water tech innovations.
The company’s investment philosophy stems from a deep understanding that breakthrough water technologies often emerge from advances in material science, process engineering, and chemical innovation. This technical foundation enables Evonik to recognize transformative potential in early-stage companies that might be overlooked by traditional venture capital firms.
Evonik’s €400M investment firepower is strategically deployed through a three-pillar framework. First, the fund prioritizes technologies that address critical challenges in water treatment, purification, and resource recovery. Second, it seeks innovations that can benefit from Evonik’s extensive industrial network and technical capabilities. Third, it focuses on solutions that demonstrate clear paths to scalability and commercial viability.
What truly sets Evonik’s investment approach apart is its integration of scientific rigor with market opportunity assessment. The venture team works closely with Evonik’s research divisions to evaluate not just the business potential but also the fundamental chemistry and engineering principles underlying each technology. This dual lens helps identify investments that are both technically sound and commercially promising.
The fund’s strategic focus on water technology reflects a broader understanding of global water challenges. As industrial water demand continues to grow and quality standards become more stringent, novel treatment approaches and resource recovery solutions are becoming increasingly critical. Evonik’s position as both an industrial operator and venture investor creates a powerful feedback loop – market insights inform investment decisions, while portfolio companies benefit from real-world industrial expertise.
Beyond capital, Evonik offers portfolio companies access to world-class research facilities, pilot testing capabilities, and decades of process optimization experience. This technical partnership model has proven particularly valuable in helping startups bridge the challenging gap between laboratory success and commercial implementation.
The fund’s investment thesis also recognizes the growing convergence of water technology with other industrial processes. Whether in resource recovery, energy efficiency, or circular economy solutions, water innovation increasingly requires cross-disciplinary expertise. Evonik’s broad industrial knowledge base positions it to evaluate and support these integrated solutions effectively.
Beyond Capital: The Technical Due Diligence Edge
Evonik’s technical due diligence process stands as a cornerstone of their venture capital strategy, particularly in water technology investments. Drawing from decades of chemical engineering expertise, their approach transcends traditional financial assessment to deliver comprehensive technical validation that few corporate investors can match.
At the heart of their methodology lies a three-tiered technical assessment framework. The first tier involves their in-house water technology experts conducting detailed analyses of the fundamental science behind each innovation. This rigorous approach to technical evaluation mirrors the principles outlined in what successful exits require. These specialists examine not just the theoretical foundations but also the practical implications of scaling the technology.
The second tier focuses on integration potential. Evonik’s technical teams evaluate how new technologies might complement or disrupt existing water treatment processes. This assessment considers factors like energy consumption, operational complexity, and maintenance requirements. Their engineers simulate various implementation scenarios, stress-testing technologies under different conditions to validate performance claims.
The final tier examines scalability and manufacturing feasibility. Here, Evonik leverages its vast industrial experience to assess production challenges, supply chain considerations, and quality control requirements. This phase often reveals critical insights that purely financial due diligence might miss, such as potential material compatibility issues or processing bottlenecks.
Beyond evaluation, Evonik’s technical due diligence process creates unique value for portfolio companies. Start-ups gain access to state-of-the-art testing facilities and pilot plant infrastructure, accelerating their development timeline. The company’s extensive network of technical experts provides ongoing consultation, helping young companies navigate complex engineering challenges and regulatory requirements.
This technical depth also enables Evonik to identify synergistic opportunities between portfolio companies. Their understanding of chemical processes and water treatment technologies helps spot potential collaborations that might otherwise go unnoticed. This capability proves particularly valuable in the water sector, where successful solutions often require combining multiple technologies.
Moreover, Evonik’s technical due diligence frequently uncovers new applications for emerging technologies. Their broad industrial perspective helps identify opportunities beyond the start-up’s initial target market, potentially expanding the technology’s commercial potential and reducing investment risk.
The rigor of their technical assessment also serves as a powerful de-risking tool for co-investors. When Evonik validates a technology, it provides other investors with confidence that the fundamental technical challenges have been thoroughly evaluated by industry experts.
Portfolio Synergies: Creating Value Through Chemistry
Evonik’s approach to water technology investments extends far beyond traditional venture capital. By leveraging its industrial expertise and vast chemical manufacturing network, the company creates unique synergies that amplify value across its portfolio companies.
At the core of these synergies lies Evonik’s deep understanding of chemical processes and industrial applications. Portfolio companies gain privileged access to Evonik’s research facilities, pilot plants, and manufacturing infrastructure. This enables rapid prototyping, testing, and scaling of new water treatment technologies in real industrial environments.
The company’s established relationships with industrial customers provide an invaluable testing ground for portfolio companies’ innovations. When a startup develops a promising water treatment solution, Evonik can facilitate pilot programs within its own operations or partner facilities. This accelerates the path to commercial validation while providing valuable performance data in actual industrial settings.
Evonik’s chemical expertise also helps portfolio companies optimize their technologies. The company’s scientists and engineers collaborate with startups to enhance treatment efficiency, reduce energy consumption, and improve the economic viability of novel water solutions. This technical support often leads to breakthrough improvements that would be difficult for startups to achieve independently.
The strategic value extends to supply chain optimization as well. Portfolio companies can leverage Evonik’s global procurement network and established supplier relationships to secure key materials at competitive prices. This purchasing power helps startups scale their operations more efficiently while maintaining healthy margins.
Perhaps most importantly, Evonik’s industrial presence enables portfolio companies to access new market opportunities. The company’s extensive customer network spans multiple industries, from wastewater treatment to industrial process water. These connections help startups identify new applications for their technologies and accelerate market entry.
As highlighted in how to take mid-market green tech companies to the next level, this industrial backing provides crucial advantages for scaling water innovations. Portfolio companies benefit from Evonik’s manufacturing expertise, quality control systems, and regulatory compliance experience – essential elements for successful commercialization in the water sector.
The synergies also flow both ways. By working closely with innovative startups, Evonik gains early insights into emerging water technologies and trends. This helps the company identify new growth opportunities and maintain its competitive edge in water-related markets.
Through this integrated approach, Evonik creates a uniquely powerful platform for water technology innovation. The combination of venture capital, industrial expertise, and strategic support helps portfolio companies overcome key scaling challenges while accelerating the deployment of breakthrough water solutions.
Future Flows: Investment Trends and Opportunities
Evonik Venture Capital’s €400M fund signals a transformative shift in water technology investment priorities. The venture arm recognizes breakthrough innovations bridging sustainability and profitability gaps across the water sector, while maintaining sharp focus on scalable solutions aligned with global water challenges.
Three key investment trends are shaping Evonik’s forward-looking strategy. First, the fund prioritizes technologies enabling water circularity and resource recovery. Advanced membrane materials, energy-efficient treatment processes, and smart water monitoring systems lead this category. Second, increasing attention centers on innovations addressing emerging contaminants like PFAS, microplastics, and pharmaceutical residues. Third, the fund targets solutions enhancing water infrastructure resilience against climate impacts.
For entrepreneurs and co-investors, Evonik’s approach creates distinct opportunities. The fund’s deep chemical expertise allows enhanced due diligence on technical innovations while providing strategic support for commercialization. This combination proves especially valuable for startups navigating complex regulatory environments and lengthy validation cycles typical in the water sector.
Co-investment partnerships remain central to Evonik’s strategy. The fund actively seeks collaborations with both financial and strategic investors to share risk and accelerate market adoption. This multiplier effect amplifies available capital while creating valuable synergies across the water innovation ecosystem.
Evonik’s investment thesis extends beyond pure financial returns. The fund evaluates opportunities through a triple bottom line lens – examining economic viability alongside environmental and social impact metrics. This approach aligns with growing ESG imperatives while identifying solutions with genuine potential to address global water challenges.
Looking ahead, Evonik anticipates increased deal flow in digital water solutions, resource recovery technologies, and innovations enabling industrial water reuse. The fund’s substantial firepower positions it to take meaningful stakes in promising ventures while maintaining reserves for follow-on investments. This patient capital approach proves essential for water technology ventures requiring extended commercialization timelines.
For the broader water sector, Evonik’s expanded investment mandate signals growing institutional confidence in water technology opportunities. The fund’s ability to bridge industrial expertise with venture capital discipline creates a powerful platform for accelerating water innovation when it’s needed most.
Final words
Evonik Venture Capital’s approach to water technology investment reflects a sophisticated understanding of both market dynamics and environmental imperatives. Their €400 million fund, deployed with strategic precision through €5-15 million investments, demonstrates a commitment to scaling solutions that matter. The 2.33 follow-on ratio speaks volumes about their dedication to supporting portfolio companies beyond initial funding rounds. What sets Evonik apart is their ability to combine financial firepower with deep technical expertise and market access, making them an attractive partner for water entrepreneurs looking to scale globally. For impact investors, Evonik’s focus on sustainable solutions and proven track record in water technology makes them a reliable co-investment partner. As the water sector continues to evolve, Evonik’s balanced approach to innovation and sustainability positions them well to drive the next wave of water technology breakthroughs. Their emphasis on decentralized solutions and sustainable treatment technologies aligns perfectly with global trends toward more resilient and environmentally conscious water infrastructure.
Wanna explore the Full List of Water Investors that cut at least two checks over the past decade? Check it out and bookmark it, I update it regularly!
Learn more: https://dww.show/the-ultimate-water-investor-database/
About us
Through my ‘(don’t) Waste Water’ platform, I offer unique and insightful coverage of the water industry that combines technical expertise with engaging storytelling. If you haven’t yet, it might be time for you to subscribe to the podcast, the youtube channel and/or the newsletter!