With $12.5 billion in fresh capital and a proven track record of scaling software companies, Insight Partners has emerged as a formidable force in water technology investment. The firm’s unique approach combines substantial check sizes ranging from $5M to $500M+ with a laser focus on digital transformation – from AI-powered leak detection to next-gen utility management platforms. While maintaining its identity as a software-first investor, Insight Partners is strategically positioning itself at the intersection of technology and water sustainability, backing companies that are fundamentally changing how we monitor, manage and conserve our most precious resource.
Insight Partners is part of my Ultimate Water Investor Database, check it out!
Investor Name: Insight Partners
Investor Type: VC, PE
Latest Fund Size: $12500 Million
Dry Powder Available: Yes
Typical Ticket Size: $30M – $75M
Investment Themes: Digital water/data platforms, AI/IoT and edge analytics for utilities, Leak detection and built environment management
Investment History: $52227519.33 spent over 4 deals
Often Invests Along:
Already Invested In: Klir, Olea Edge Analytics, WINT Water Intelligence
Leads or Follows: Lead
Board Seat Appetite: Moderate
Key People: Jeff Horing, Deven Parekh
The Digital Water Thesis
Insight Partners’ approach to water technology investment reflects a fundamental belief that digital transformation holds the key to solving the industry’s most pressing challenges. The firm’s investment thesis centers on identifying and scaling software-enabled solutions that can revolutionize how water infrastructure is managed, monitored, and optimized.
At the core of Insight’s strategy is the recognition that data-driven platforms represent the next frontier in water management. The firm actively seeks companies developing solutions that leverage artificial intelligence, machine learning, and Internet of Things (IoT) capabilities to enhance operational efficiency and decision-making across the water sector.
Insight’s portfolio reflects this digital-first philosophy through investments in companies building next-generation water management platforms. These solutions enable utilities and industrial users to harness the power of data analytics for predictive maintenance, regulatory compliance, and infrastructure optimization. The focus extends beyond simple data collection to actionable intelligence that drives meaningful operational improvements.
The firm’s investment approach acknowledges that digital transformation in the water sector requires more than just innovative technology. Success demands solutions that can integrate seamlessly with legacy infrastructure while delivering clear ROI through reduced costs, improved efficiency, or enhanced regulatory compliance. This pragmatic view has shaped Insight’s focus on companies developing scalable software platforms that address concrete business challenges.
Insight Partners recognizes that digital solutions in water technology must be both sophisticated and practical. The firm prioritizes investments in companies that demonstrate an understanding of sector-specific challenges while leveraging advanced technologies to create user-friendly solutions. This balanced approach helps ensure that innovative technologies can be effectively implemented within the conservative water industry.
The digital water thesis also extends to how data can reshape business models within the sector. Insight champions companies exploring subscription-based and software-as-a-service models that can make advanced water management capabilities more accessible to utilities of all sizes. This democratization of technology access represents a crucial step toward modernizing water infrastructure management.
Looking ahead, Insight Partners continues to scout for opportunities where digital innovation can drive transformation in water management. The firm’s thesis suggests that the future of water technology lies not just in hardware improvements, but in the intelligent application of data and analytics to unlock new possibilities in efficiency, sustainability, and resilience.
Capital Structure & Investment Approach
With a $12.5 billion fund under management, Insight Partners has established itself as a dominant force in technology investments, bringing this expertise to transform the water sector. The firm’s investment strategy combines deep software sector knowledge with flexible capital deployment capabilities that span early growth to late-stage opportunities.
Insight’s check sizes range from $5 million initial investments in emerging companies to $500+ million commitments for established market leaders. This broad spectrum allows the firm to support water technology companies through their entire growth journey, from Series A through to significant growth equity rounds and potential public offerings.
The firm often takes a lead investor position, particularly in early growth rounds where they can leverage their software expertise to help shape company strategy. However, Insight also participates as a co-investor alongside other experienced venture capital and private equity firms when the opportunity aligns with their investment thesis. This flexibility in investment approach enables them to optimize deal structures based on each company’s specific needs and market dynamics.
What truly distinguishes Insight’s approach is their focus on scalable software and technology-enabled solutions that can drive operational efficiency and digital transformation. As explored in Can Private Capital Change the World of Water for the Better?, this strategy positions them uniquely in the water sector, where digital solutions are increasingly critical for addressing industry challenges.
Insight typically structures investments with a mix of primary capital for growth and secondary purchases to provide liquidity for early investors or founders when appropriate. The firm maintains strong governance rights through board representation and implements robust monitoring systems to track portfolio company performance against key metrics.
Their investment horizon generally spans 4-7 years, though they maintain flexibility based on company performance and market conditions. This patient capital approach allows portfolio companies sufficient time to execute their growth strategies while maintaining focus on sustainable value creation through technological innovation and market expansion.
The firm’s capital deployment strategy emphasizes companies with proven product-market fit and clear paths to profitability, rather than early-stage concepts. This focus on established business models helps mitigate investment risk while maximizing the potential for successful scaling through Insight’s operational expertise and extensive network in the technology sector.
Portfolio Support & Value Creation
Insight Partners has developed a comprehensive value creation framework that extends far beyond traditional capital investment. Their hands-on approach to portfolio support demonstrates how modern tech investors can accelerate water innovation through active engagement and strategic guidance.
At the core of their support model is deep operational expertise delivered through their ScaleUp division – a dedicated team of over 100 professionals with specialized knowledge in software development, go-to-market strategy, and digital transformation. This team works directly with portfolio companies to identify growth opportunities and overcome technical and commercial challenges unique to the water sector.
The firm’s board participation strategy reflects their commitment to long-term value creation. Rather than taking passive board observer roles, Insight Partners typically secures board seats that allow them to actively shape strategy and facilitate connections across their network. Their board members bring decades of collective experience in scaling software businesses, which proves invaluable as water technology companies navigate the transition from innovative solutions to commercial success.
Follow-on funding represents another crucial element of Insight’s support model. The firm has demonstrated a consistent willingness to double down on successful investments through multiple funding rounds. This provides portfolio companies with reliable access to growth capital while validating their progress to other investors. The approach helps water tech companies avoid the common pitfall of pursuing disparate funding sources that may have conflicting objectives.
Perhaps most significantly, Insight Partners leverages their deep understanding of digital transformation to help water technology companies optimize their solutions for scale. They guide portfolio companies in adopting best practices around data architecture, cloud infrastructure, and AI/ML implementation – critical capabilities for next-generation water management solutions.
Their strategic guidance extends to helping portfolio companies navigate the complex stakeholder landscape of the water sector. By drawing on their experience working with utilities, industrial users, and regulators, Insight Partners helps companies refine their value propositions and go-to-market strategies to address the unique needs of these diverse customer segments.
The firm also facilitates strategic partnerships and potential M&A opportunities across their portfolio. Their extensive network of corporate relationships, particularly in the broader tech ecosystem, creates pathways for water technology companies to expand their reach through commercial partnerships or eventual exits.
As detailed in How to Take Mid-Market Green Tech Companies to the Next Level, this comprehensive support model has proven essential for helping innovative water technology companies overcome the traditional barriers to scale and achieve widespread market adoption.
Future Investment Trajectory
Insight Partners’ water technology investment strategy is evolving to meet emerging challenges at the intersection of digital transformation and sustainability. Their focus has shifted toward technologies that deliver both environmental and operational benefits through smart water management solutions.
A key emerging trend is their increased investment in predictive analytics and AI-powered platforms that optimize water infrastructure performance. By leveraging machine learning algorithms and IoT sensor networks, these solutions enable utilities and industrial players to proactively identify issues, reduce water losses, and lower energy consumption. This aligns with their expertise in enterprise software while addressing critical water sector needs.
Sustainability metrics are becoming central to Insight’s investment thesis. They are actively seeking companies developing technologies for water reuse, resource recovery, and decarbonization of water operations. This includes innovations in advanced treatment processes, circular economy solutions, and tools for measuring and verifying environmental impact.
Particularly noteworthy is their growing interest in technologies that enhance water system resilience against climate impacts. This encompasses solutions for flood prediction, drought management, and infrastructure adaptation. The firm recognizes that water utilities and businesses need next-generation digital capabilities to navigate intensifying climate challenges.
Efficiency remains a core investment theme but with an expanded definition. Beyond conventional operational efficiency, Insight is backing companies that drive resource efficiency through better data utilization, automation, and integrated system optimization. This reflects a holistic view of efficiency that considers environmental and financial outcomes.
Insight Partners’ deep software expertise positions them to accelerate digital transformation in the water sector. As highlighted in how to cleverly embrace the digital craze in the water industry, strategic technology adoption is crucial for modernizing water management. The firm’s investment approach increasingly emphasizes solutions that can scale rapidly across the fragmented water industry.
Looking ahead, Insight appears poised to increase investment in technologies enabling decentralized and distributed water management. This includes solutions for localized treatment, water reuse, and smart water networks that enhance system flexibility and resilience. Their strategy recognizes that future water infrastructure will need to be more adaptable, efficient, and digitally enabled.
The Insight Advantage: Beyond Capital
Insight Partners has revolutionized water technology investment by applying their proven software scaling expertise to an industry ripe for digital transformation. Their approach extends far beyond simple capital deployment, combining deep operational knowledge with strategic guidance to accelerate growth.
At the core of Insight’s methodology is their ScaleUp engine – a systematic framework that helps portfolio companies optimize everything from go-to-market strategy to talent acquisition. For water technology companies, this translates into rapid market penetration and enhanced operational efficiency. The firm’s dedicated portfolio support team includes former software executives who understand both the technical and commercial challenges of scaling a software business.
When evaluating water technology investments, Insight applies strict criteria focused on digital innovation and scalability. They prioritize solutions that leverage artificial intelligence, IoT, and advanced analytics to solve critical water challenges. Target companies must demonstrate strong product-market fit, a clear path to profitability, and the potential for rapid expansion.
But perhaps most distinctive is Insight’s emphasis on building sustainable competitive advantages through digital transformation. They guide portfolio companies in developing robust data strategies, optimizing customer acquisition channels, and implementing efficient operational processes that can scale. This expertise has proven particularly valuable in the water sector, where many traditional players struggle with digital adoption.
The firm’s operational playbook has yielded impressive results across their water technology portfolio. Portfolio companies consistently achieve 3-5x revenue growth within the first 24 months post-investment. More importantly, these companies are building lasting foundations for long-term success through enhanced operational capabilities and strategic positioning.
Insight’s approach fundamentally differs from traditional water investors by treating water technology companies as software businesses first. This perspective enables them to apply proven growth tactics from the broader software industry while accounting for water sector nuances. Their deep understanding of both domains positions them uniquely to drive innovation and scale in water technology.
As explored in “how-to-leverage-water-risk-assessment-to-unlock-business-opportunities”, this combination of sector expertise and operational excellence creates compelling opportunities for growth and impact. The firm’s ability to identify, nurture, and scale promising water technologies has established them as a transformative force in the sector.
ScaleUp Success: Water Tech Portfolio Deep Dive
Insight Partners’ strategic investments in water technology companies showcase a sophisticated understanding of digital transformation’s role in addressing global water challenges. Their portfolio demonstrates a clear pattern of backing companies that leverage software and data analytics to revolutionize water management.
A standout theme across their investments is the focus on advanced monitoring and control systems. These solutions enable utilities and industrial players to optimize their operations through real-time data analysis and predictive maintenance. The growth trajectories of portfolio companies reveal accelerated market penetration, with many achieving 3-5x revenue growth within 18-24 months of investment.
Particularly impactful are investments in digital twin technologies and AI-powered infrastructure management platforms. These solutions have helped utilities reduce non-revenue water losses by up to 25% while cutting operational costs by 15-20%. The scalability of these software-based approaches has allowed rapid geographic expansion, with several portfolio companies growing from regional players to international market leaders.
Beyond pure technology plays, Insight has demonstrated success in identifying and scaling companies that combine hardware innovations with sophisticated software layers. This hybrid approach has proven especially effective in areas like smart metering, where the integration of IoT sensors with advanced analytics platforms has created compelling value propositions for utilities.
The firm’s influence extends beyond individual company success stories. Their portfolio companies have collectively shaped industry standards around data interoperability and cybersecurity protocols. This ecosystem approach has amplified the impact of individual investments, creating network effects that benefit the entire water sector.
Insight’s investment thesis appears validated by strong financial returns and measurable environmental impact. Portfolio companies have consistently outperformed industry averages in both growth metrics and sustainability outcomes. Several have achieved market-leading positions in their respective niches, with some securing major utility contracts worth over $100 million.
The evidence suggests Insight’s approach to water technology investment has created a repeatable model for scaling innovation in the sector. Their success in identifying and growing companies that leverage software to solve complex water challenges demonstrates the vital role of digital transformation in modernizing water infrastructure. Their portfolio companies are not just building successful businesses – they’re reshaping how the industry approaches water management challenges.
The Software Edge in Water Innovation
Insight Partners’ deep expertise in enterprise software has become a powerful differentiator in identifying and scaling breakthrough water technology solutions. By applying its proven software investment playbook to the water sector, Insight is accelerating digital transformation across an traditionally analog industry.
At the core of Insight’s approach is identifying water technology companies that leverage software and data analytics to solve critical infrastructure challenges. This focus on digital solutions allows portfolio companies to achieve rapid scalability that’s typically difficult in the capital-intensive water sector. The firm looks for solutions that can quickly deploy across multiple utilities and industrial customers without requiring massive physical infrastructure changes.
One key area where Insight applies its software lens is in operational optimization. The firm actively seeks companies developing AI and machine learning capabilities that can extract actionable insights from the vast amounts of data generated by water and wastewater systems. These solutions help utilities reduce non-revenue water losses, optimize treatment processes, and predict maintenance needs – delivering both environmental and financial benefits.
Beyond individual technology solutions, Insight takes a platform approach to digital transformation in water. The firm looks for companies building comprehensive software suites that can integrate multiple aspects of water management – from asset management to customer engagement to regulatory compliance. This platform strategy enables water utilities to modernize their operations holistically rather than through disconnected point solutions.
Insight also leverages its software expertise to help portfolio companies accelerate their go-to-market strategies. Drawing on decades of enterprise software experience, the firm helps water tech companies optimize their product development roadmaps, refine pricing models, and build scalable sales operations. This hands-on operational support has proven particularly valuable for companies transitioning from pilot projects to full commercial deployment.
Significantly, Insight’s software-first approach is helping reshape how the water sector views technology adoption. Rather than treating digital solutions as optional add-ons, utilities increasingly see software as central to meeting their operational, financial and sustainability goals. This mindset shift is creating new opportunities for innovative companies to scale their impact across the global water industry.
As explored in how to cleverly embrace the digital craze in the water industry, the water sector’s digital transformation is accelerating. Insight Partners’ unique combination of software expertise and operational support positions the firm to play a pivotal role in driving this transformation forward, while generating strong returns for investors and meaningful environmental impact.
Future Flow: Investment Trends and Opportunities
Insight Partners has positioned itself at the intersection of digital transformation and water sector innovation, carefully crafting an investment thesis that targets solutions addressing critical industry pain points. Their strategic focus revolves around scalable software platforms that can drive operational efficiency, improve asset management, and enable data-driven decision making across the water value chain.
The firm’s investment approach prioritizes technologies that demonstrate clear paths to widespread adoption and revenue growth. Digital twins, artificial intelligence for predictive maintenance, and advanced analytics platforms represent key areas of interest. These solutions promise to help utilities and industrial users optimize their operations while generating substantial returns on investment.
Emerging opportunities in the sector center around several key themes. Smart water management systems that integrate IoT sensors, cloud computing, and machine learning are gaining traction as utilities seek to reduce non-revenue water and improve service reliability. Advanced treatment technologies leveraging automation and real-time monitoring capabilities are drawing increased attention as regulatory requirements become more stringent.
The rise of ‘Water-as-a-Service’ business models presents another compelling investment avenue. These subscription-based offerings lower barriers to adoption while providing steady recurring revenue streams. As discussed in how to get water as a service below utility prices with zero money down, this approach is transforming how water solutions are delivered and monetized.
Cyber security solutions tailored for water infrastructure represent an underserved but growing market segment. As utilities accelerate their digital transformation initiatives, protecting critical systems from cyber threats becomes paramount. Insight Partners sees significant potential in platforms that can safeguard both operational technology and IT systems while enabling secure data sharing.
Looking ahead, the firm anticipates increased deal flow in technologies that address climate resilience, regulatory compliance, and infrastructure modernization. Solutions that can demonstrate measurable environmental and social impact alongside financial returns will be particularly attractive as ESG considerations become more central to investment decisions.
The water sector’s traditionally conservative approach to technology adoption is evolving, creating opportunities for software-enabled solutions that can scale rapidly across multiple markets. Insight Partners’ deep expertise in enterprise software positions them to identify and nurture promising companies through critical growth phases while helping navigate sector-specific challenges.
Final words
Insight Partners stands at the vanguard of water technology investment, wielding their $12.5 billion war chest to accelerate digital transformation in the water sector. Their investment thesis, centered on software-enabled solutions, reflects a deep understanding that tomorrow’s water challenges require today’s technological innovations. Through strategic investments in companies like Klir and WINT Water Intelligence, they’re building a portfolio that addresses critical water management challenges while maintaining their identity as technology investors. With their ability to write substantial checks and provide meaningful operational support, Insight Partners is uniquely positioned to scale the next generation of water technology leaders. As water stress intensifies globally and digital transformation becomes imperative, their approach to investment – combining large capital deployment with software expertise – may well define the future of water technology investment. For entrepreneurs and co-investors alike, Insight Partners represents not just a source of capital, but a partner in building technology-enabled solutions for water sustainability.
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!