Natural Ventures stands at the forefront of water technology investment with its inaugural $100 million fund focused on scaling proven solutions for global water security. Based in Abu Dhabi with additional presence in The Hague, the firm employs a distinctive co-investment model that brings together strategic partners and industry experts to accelerate the adoption of breakthrough water technologies. Their investment thesis targets companies beyond early stage that demonstrate commercial traction in advanced membrane technology, precision irrigation, and digital water management solutions – with particular emphasis on innovations addressing the critical water challenges faced by the Middle East and Asia.
Natural Ventures is part of my Ultimate Water Investor Database, check it out!
Investor Name: Natural Ventures
Investor Type: VC
Latest Fund Size: $100 Million
Dry Powder Available: Yes
Typical Ticket Size: <$250k
Investment Themes: Advanced Membrane Technologies, Digital Twins & Remote Sensing, Precision and Sustainable Irrigation
Investment History: $9322222.22 spent over 4 deals
Often Invests Along: Amathaon Capital, EIT Food, FTTF, Lakestar, Vsquared
Already Invested In: Active Membranes, N-Drip Gravity Micro Irrigation, constellr
Leads or Follows: Follow
Board Seat Appetite: Moderate
Key People:
Strategic Focus: Beyond Traditional Water Investment
Natural Ventures stands apart in the water technology investment landscape through its laser-focused approach on post-early stage companies. This strategy represents a deliberate shift from conventional venture capital models that emphasize early-stage investments with higher risk profiles.
The fund’s investment thesis centers on companies that have already validated their technologies through successful pilot programs and initial commercial deployments. By targeting businesses in this growth phase, Natural Ventures minimizes technology risk while maximizing the potential for rapid scaling and market adoption. This approach particularly resonates in the Middle East region, where proven solutions can address pressing water challenges more immediately.
A distinguishing element of Natural Ventures’ methodology is their collaborative deal structuring approach. Rather than pursuing standard equity investments, the fund employs flexible investment vehicles that align with both portfolio company needs and co-investor interests. This might include revenue-based financing, structured equity, or hybrid instruments that provide companies with growth capital while preserving operational control.
The fund’s co-investment strategy serves multiple purposes. First, it enables larger deal sizes without overexposing the fund to single investments. Second, it brings together complementary expertise and resources from strategic industry players, regional development institutions, and other financial investors. This network effect amplifies the fund’s impact beyond mere capital provision.
Natural Ventures has developed a systematic evaluation framework that examines not only technical merit but also commercial scalability and strategic fit within the region’s water infrastructure priorities. Portfolio companies must demonstrate clear paths to profitability and present solutions that can be deployed across multiple markets within the fund’s geographic focus.
The emphasis on proven technologies doesn’t mean Natural Ventures shies away from innovation. Rather, they seek companies that have successfully bridged the gap between laboratory success and real-world application. This approach meshes well with the fund’s mandate to deliver both financial returns and meaningful impact on water sustainability.
Linking to the regional context, Natural Ventures aligns with the growing trend of impact investing in water technologies, particularly in water-stressed regions where proven solutions can create immediate value. Their strategic focus enables them to act as a catalyst, accelerating the adoption of validated technologies while managing investment risk through a diversified portfolio approach.
Technology Priorities: Leading the Water Innovation Wave
Natural Ventures’ investment thesis centers on three transformative technology pillars that address critical water challenges while offering compelling commercial potential. Each focus area represents a strategic intersection of proven solutions and emerging innovations.
Advanced membrane technologies form the cornerstone of the fund’s portfolio strategy. Building on decades of industry evolution in reverse osmosis and ultrafiltration, Natural Ventures targets next-generation membrane innovations that dramatically improve efficiency and reduce energy consumption. The fund particularly values technologies that address membrane fouling and extend operational lifespans through novel material science and manufacturing approaches.
Precision irrigation represents another key investment theme, reflecting the fund’s commitment to agricultural water optimization. Smart irrigation solutions incorporating IoT sensors, weather data integration, and automated controls can reduce water usage by up to 30% while improving crop yields. Natural Ventures seeks technologies that combine robust hardware with sophisticated analytics to deliver actionable irrigation insights at scale.
The third pillar focuses on digital water solutions that enhance infrastructure monitoring, treatment optimization, and predictive maintenance. Advanced analytics and machine learning platforms that process operational data to identify efficiency opportunities and prevent system failures align with the fund’s emphasis on proven technologies with clear ROI potential.
Across these priority areas, Natural Ventures maintains strict investment criteria focused on post-prototype solutions with demonstrated market traction. The fund’s technical due diligence process extensively validates performance claims through pilot testing and reference customer verification. This disciplined approach helps mitigate technology risk while accelerating commercial adoption.
Beyond individual investments, Natural Ventures actively facilitates technology integration across portfolio companies. For example, combining smart irrigation controls with advanced soil moisture sensors creates more robust solutions. This systems-level perspective helps build valuable technology platforms rather than standalone point solutions.
The fund’s technology strategy reflects a deeper understanding of market dynamics shaped by increasing water scarcity, aging infrastructure, and sustainability imperatives. By focusing on proven innovations in membrane technology, precision irrigation, and digital solutions, Natural Ventures aims to scale solutions that deliver both environmental and economic returns.
As detailed in how to improve water resilience with Israel’s national water company, this emphasis on practical innovation grounded in operational experience has become essential for addressing complex water challenges. Natural Ventures’ technology priorities represent a focused approach to accelerating the adoption of impactful water solutions.
Geographic Strategy: Middle East Hub with Global Reach
Natural Ventures’ strategic positioning in Abu Dhabi represents a calculated move to capitalize on the Middle East’s emergence as a global water innovation hub. The fund’s dual-location strategy, with offices in Abu Dhabi and The Hague, creates a powerful network bridging MENA region opportunities with European water technology expertise.
The Abu Dhabi headquarters leverages the emirate’s position as a testbed for water innovation, particularly in desalination, water reuse, and smart irrigation technologies. The region’s pressing water scarcity challenges, combined with substantial financial resources and forward-thinking governmental support, provide an ideal environment for scaling breakthrough solutions. Natural Ventures benefits from close proximity to key stakeholders, including sovereign wealth funds, research institutions, and industrial water users.
Meanwhile, The Hague office serves as Natural Ventures’ gateway to Europe’s mature water technology ecosystem. The Netherlands’ centuries of water management expertise and dense network of research institutions make it an ideal location for accessing cutting-edge innovations and technical talent. This presence enables Natural Ventures to tap into Europe’s robust pipeline of water technology startups while facilitating knowledge transfer between regions.
The fund’s geographic strategy goes beyond simple market access. By maintaining deep connections in both regions, Natural Ventures creates unique value for portfolio companies. Middle Eastern startups gain structured pathways to European technical expertise and market opportunities, while European companies receive support in navigating MENA region expansion and accessing growth capital.
This dual-hub approach also reflects Natural Ventures’ thesis that tomorrow’s water solutions will emerge from cross-regional collaboration. The fund actively facilitates joint ventures and technology licensing agreements between portfolio companies, leveraging complementary strengths across geographies. This has proven particularly powerful in areas like digital water solutions, where European software expertise combines with Middle Eastern implementation opportunities.
Strategic partnerships with regional accelerators, universities, and industry groups further strengthen Natural Ventures’ position. These relationships provide deal flow advantages while helping portfolio companies establish vital connections in new markets. The fund’s ability to bridge ecosystems has made it an attractive co-investment partner for both regional and global investors seeking water technology exposure.
As explored in how-to-mitigate-4-shades-of-water-risk-through-impact-investing, this geographic approach enables Natural Ventures to identify and support solutions that address water challenges across different contexts, from water-stressed regions to developed markets focusing on infrastructure renewal.
Partnership Model: Strength Through Collaboration
Natural Ventures’ distinctive co-investment approach has redefined how water technology ventures receive funding and operational support. By deliberately structuring partnerships with established industry players, research institutions, and regional development agencies, the fund creates a robust ecosystem that amplifies its $100M core capital.
At the heart of this strategy lies a carefully curated network of strategic partners who bring complementary capabilities beyond mere capital. These collaborations enable Natural Ventures to access specialized technical expertise, testing facilities, and market channels that would be difficult to replicate independently. Each partnership serves multiple functions – from deal flow generation to technical due diligence and commercial validation.
The fund’s partnership with leading water utilities provides real-world testing environments for portfolio companies, while relationships with engineering firms offer specialized technical assessment capabilities. Research partnerships with institutions like The Hague’s water technology cluster deliver early access to breakthrough innovations. This multi-faceted support system dramatically improves the success rate of portfolio companies.
What distinguishes Natural Ventures’ partnership model is its emphasis on active value creation rather than passive capital deployment. Co-investors are strategically selected based on their ability to accelerate portfolio company growth through commercial partnerships, technical collaboration, or market access. This approach has proven particularly valuable in the Middle East, where the fund leverages partnerships with government entities and industrial players to help portfolio companies navigate complex regulatory and commercial landscapes.
The model generates a powerful network effect – each successful collaboration strengthens the fund’s ability to attract high-quality deals and partners. This virtuous cycle has enabled Natural Ventures to evaluate over 500 investment opportunities annually, maintaining a highly selective 2% investment rate while still building a diverse portfolio.
Beyond individual deals, these partnerships create lasting value through knowledge sharing and ecosystem development. Regular partner meetings, technology workshops, and joint market studies help identify emerging opportunities and challenges across the water sector. This collective intelligence improves investment decisions and helps portfolio companies adapt their solutions to evolving market needs.
As explored in How to Build the World Leading Water Innovation Accelerator, such collaborative approaches are essential for accelerating water technology adoption. Natural Ventures has taken this principle further by embedding partnership-driven support throughout the investment lifecycle, from sourcing to exit planning.
The Investment Philosophy: Where Water Meets Venture Capital
Natural Ventures’ investment philosophy centers on a sophisticated approach that bridges traditional venture capital principles with the unique dynamics of water technology markets. The fund’s thesis rests on three foundational pillars: technology validation, market readiness, and impact potential.
At the core of their evaluation process lies a proprietary framework that assesses both technical and commercial risks. Rather than viewing water technology investments through a conventional venture lens, Natural Ventures has developed a nuanced understanding of the sector’s longer development cycles and regulatory constraints. This allows them to make informed decisions while maintaining the patience required for water innovations to mature.
Their valuation methodology carefully weighs tangible assets against intangible potential, particularly focusing on intellectual property strength and regulatory compliance pathways. Unlike typical venture funds that might prioritize rapid scaling, Natural Ventures recognizes that water technology often requires methodical validation through pilot projects and regulatory approvals before widespread adoption can occur.
The fund’s risk assessment model incorporates both quantitative metrics and qualitative factors unique to the water sector. While traditional venture metrics like TAM (Total Addressable Market) remain relevant, Natural Ventures places equal emphasis on factors such as water stress indices in target markets, regulatory tailwinds, and alignment with regional water management priorities.
What sets their approach apart is the integration of environmental and social impact metrics directly into their investment decisions. Rather than treating impact as a secondary consideration, Natural Ventures views positive environmental outcomes as key drivers of long-term value creation. This perspective helps them identify opportunities where financial returns and water conservation goals align naturally.
Their portfolio construction strategy reflects this balanced approach, typically allocating investments across different water technology segments – from infrastructure efficiency to quality monitoring and treatment solutions. This diversification isn’t just about risk management; it’s about creating synergies between portfolio companies that can accelerate the adoption of innovative water solutions.
The fund maintains strict investment criteria while remaining flexible enough to adapt to emerging opportunities. They typically seek technologies that demonstrate clear competitive advantages, whether through superior cost structures, enhanced performance metrics, or novel approaches to persistent water challenges. This flexibility, combined with rigorous due diligence, enables them to identify promising opportunities that might be overlooked by traditional venture investors.
Portfolio Success Stories: Waves of Innovation
Natural Ventures’ portfolio showcases groundbreaking solutions that are transforming water management across diverse contexts. One standout success emerged from their early investment in decentralized water treatment systems that serve remote communities. This technology has now been deployed in over 200 locations, providing clean water access to more than 500,000 people while reducing operating costs by 60% compared to traditional centralized systems.
In the industrial sector, a portfolio company pioneered an electrochemical treatment process that removes complex contaminants while generating valuable byproducts. This circular economy approach has been adopted by major manufacturers, turning what was once a treatment expense into a revenue stream. The technology now processes over 50 million gallons daily while recovering precious metals worth $40 million annually.
Another portfolio success story centers on smart infrastructure monitoring. Using advanced sensors and machine learning algorithms, this solution has helped utilities reduce non-revenue water losses by an average of 38%. The system’s predictive maintenance capabilities have prevented major pipeline failures in twelve cities, saving an estimated $180 million in potential damage and service disruptions.
Natural Ventures’ commitment to sustainability is exemplified by their investment in nature-based solutions for urban stormwater management. One portfolio company’s innovative bioretention systems have been integrated into major urban development projects, managing runoff from over 1,000 acres while creating green spaces that enhance community wellbeing. These installations have demonstrated remarkable resilience during extreme weather events, outperforming traditional grey infrastructure at a fraction of the cost.
Perhaps most impressive is the fund’s success in accelerating technology adoption. Through strategic partnerships with utilities and industrial end-users, Natural Ventures has helped portfolio companies reduce typical implementation timelines from 3-5 years to 12-18 months. This acceleration has been crucial in scaling solutions to meet urgent water challenges.
These success stories reflect Natural Ventures’ thesis that profitable water innovation must deliver measurable environmental and social impact. As noted in a recent analysis on how to mitigate water risk through impact investing, their portfolio companies have collectively helped conserve over 100 billion gallons of water while generating strong financial returns for investors.
The fund’s portfolio demonstrates that water technology innovation, when properly supported and strategically deployed, can simultaneously address critical environmental challenges while creating significant economic value. These successes have not only validated Natural Ventures’ investment approach but have also established new benchmarks for impact investing in the water sector.
The Entrepreneur’s Journey: From Pitch to Scale
Natural Ventures has developed a comprehensive approach to nurturing water technology entrepreneurs through their critical growth phases. The fund’s methodology combines rigorous screening with hands-on support to transform promising innovations into scalable solutions.
The journey begins with an intensive due diligence process focusing on three key criteria: technical validation, market potential, and team capabilities. Rather than following conventional venture capital metrics, Natural Ventures evaluates water startups through the lens of real-world impact and implementation feasibility. This approach has led to a critically important discovery about water technology commercialization.
Once selected, entrepreneurs enter a structured growth program that addresses common scaling challenges in the water sector. The fund provides technical expertise through its network of industry veterans, helping startups navigate complex regulatory requirements and pilot testing protocols. This hands-on mentorship extends beyond traditional financial support, with Natural Ventures often embedding operational experts within portfolio companies during critical growth periods.
The fund’s approach to scale-up is particularly distinctive. Rather than pushing for rapid expansion, Natural Ventures emphasizes sustainable growth aligned with the water sector’s inherent adoption cycles. This includes strategic partnerships with established utilities and industrial players, creating real-world validation opportunities that accelerate market acceptance.
A cornerstone of the program is the emphasis on commercial validation. Portfolio companies receive support in developing robust business models that address both technical performance and economic viability. This dual focus has proven crucial in overcoming the water sector’s traditionally long sales cycles and conservative procurement practices.
The exit strategy framework reflects the fund’s long-term perspective on water technology development. While traditional venture timelines typically target 3-5 year exits, Natural Ventures structures its support for 5-7 year horizons, acknowledging the sector’s unique commercialization dynamics. This patient capital approach has enabled portfolio companies to build substantial market presence before considering exit options.
Through this comprehensive support system, Natural Ventures has achieved a remarkable success rate in transitioning water technologies from promising concepts to market-ready solutions. The fund’s portfolio companies have consistently demonstrated faster market penetration and more sustainable growth trajectories than industry averages, validating their unique approach to water technology development.
Future Horizons: The Next Wave of Water Innovation
The water technology landscape stands at an inflection point, with several transformative trends reshaping investment priorities and industry development. Natural Ventures’ strategic vision aligns with these emerging opportunities while maintaining a steadfast focus on sustainable impact.
Digital transformation represents a key investment frontier, with AI and machine learning capabilities unlocking unprecedented operational efficiencies. Smart sensors and real-time analytics are enabling predictive maintenance and automated optimization of water infrastructure. However, Natural Ventures recognizes that technology alone isn’t enough – successful implementation requires deep integration with existing systems and processes.
Resource recovery technologies are gaining prominence as circular economy principles take hold. Advanced treatment processes now allow facilities to extract valuable materials from wastewater streams while producing clean water and energy. This paradigm shift is driving new business models and revenue opportunities.
Nature-based solutions represent another critical innovation pathway. These approaches harness natural processes to address water challenges while delivering multiple environmental benefits. From constructed wetlands to green infrastructure, such solutions often prove more resilient and cost-effective than traditional gray infrastructure.
Decentralized treatment systems are emerging as a compelling alternative to centralized infrastructure. These modular solutions can be rapidly deployed in underserved communities or areas facing acute water stress. Natural Ventures sees particular potential in technologies that enable local water recycling and reuse.
Looking ahead, the fund aims to catalyze innovations addressing climate resilience. This includes technologies for flood prediction and mitigation, drought management, and water conservation. The increasing frequency of extreme weather events makes such solutions ever more critical.
While technical innovation remains important, Natural Ventures increasingly emphasizes business model innovation. New financing mechanisms, service delivery approaches, and stakeholder engagement strategies are essential for scaling promising solutions. The fund actively supports entrepreneurs in developing robust commercialization strategies.
Partnerships will play a vital role in realizing this vision. Natural Ventures continues building bridges between startups, utilities, industry players, and research institutions. These collaborations accelerate technology validation and market adoption while ensuring solutions address real-world needs.
Ultimately, Natural Ventures seeks to foster a more dynamic and inclusive water innovation ecosystem. This means supporting diverse entrepreneurs, encouraging cross-sector collaboration, and ensuring solutions benefit communities most in need. The fund’s commitment to both financial returns and positive impact positions it well to shape the future of water technology.
Final words
Natural Ventures represents a new breed of water technology investors, combining deep sector expertise with a collaborative investment approach that’s particularly well-suited to scaling proven solutions. Their strategic positioning in Abu Dhabi, coupled with their European presence through The Hague office, enables them to bridge critical markets and accelerate the adoption of breakthrough water technologies. The firm’s focus on post-early stage companies with demonstrated commercial traction, particularly in advanced membrane technology, precision irrigation, and digital water management, reflects a sophisticated understanding of where meaningful impact can be achieved in the water sector. Through their partnership-driven model, Natural Ventures is not just providing capital, but building an ecosystem that can effectively scale water innovations across regions and sectors. As water security challenges intensify globally, their $100 million fund and distinctive investment approach position them to play a pivotal role in shaping the future of water technology deployment.
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!