With €142 billion in assets under management, Novo Holdings stands as a formidable force in the investment landscape, increasingly turning its attention to water technology innovation. From its Copenhagen headquarters, this Nordic investment giant deploys strategic capital across a spectrum of water solutions – from breakthrough treatment technologies to resource recovery systems. Through its Planetary Health investment mandate, Novo Holdings is positioning itself as a key enabler of water technology advancement, offering entrepreneurs and co-investors access to patient capital and deep sector expertise. Their investment thesis centers on decentralized treatment, industrial applications, and circular economy approaches that promise to reshape how we manage our most precious resource.
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Investor Name: Novo Holdings
Investor Type: Family Office
Latest Fund Size: $142000 Million
Dry Powder Available: Yes
Typical Ticket Size: $30M – $75M
Investment Themes: Decentralized Water Treatment & Disinfection, Industrial & Agricultural Water, Zero-Liquid Discharge & Brine Management
Investment History: $5125000 spent over 2 deals
Often Invests Along:
Already Invested In: Aquafortus Technologies, HPNow
Leads or Follows: Lead
Board Seat Appetite: Moderate
Key People: Anders Bendsen Spohr, Cynthia Kueppers
The Investment Philosophy: Where Water Meets Returns
Novo Holdings’ approach to water technology investments reflects a sophisticated understanding of the intersection between planetary health imperatives and financial returns. Through their Planetary Health mandate, the €142B investment powerhouse has developed a distinctive framework that positions water innovation as a critical lever for both environmental impact and value creation.
At the core of their investment philosophy lies a three-pronged evaluation model. First, they assess a technology’s potential to address pressing water challenges – from scarcity and quality to infrastructure resilience. Second, they examine the scalability of solutions, favoring those that can be deployed across multiple geographies and use cases. Third, they evaluate the potential for sustainable competitive advantages that can drive long-term financial performance.
The firm’s target returns framework demonstrates remarkable flexibility, acknowledging the varying maturity levels of water technologies. While early-stage investments might target higher multiples to account for technology risk, growth-stage deals focus on companies with proven unit economics and clear paths to profitability. This nuanced approach allows Novo Holdings to build a balanced portfolio that spans the risk-return spectrum.
Strategically, Novo Holdings views water technology as a critical enabler of broader sustainability goals. Their investment thesis recognizes that water challenges intersect with climate change, public health, and food security – creating opportunities for solutions that deliver multiple impact dividends. This holistic perspective has led them to focus on technologies that optimize resource recovery, reduce energy consumption in water treatment, and enable circular water economy models.
A distinctive feature of their approach is the emphasis on collaborative innovation. Rather than viewing investments in isolation, Novo Holdings actively seeks opportunities to create synergies across their portfolio companies. This strategy has proven particularly valuable in water technology, where combining complementary solutions often unlocks greater value than standalone applications.
The firm’s patient capital orientation sets them apart in the water technology investment landscape. Unlike traditional venture capital timelines, Novo Holdings can maintain investment positions for extended periods, allowing portfolio companies to develop and optimize their technologies without undue pressure for quick exits. This approach aligns perfectly with the water sector’s typically longer development and adoption cycles.
As explored in how to mitigate 4 shades of water risk through impact investing, their investment strategy actively considers both physical and transition risks in water markets. This comprehensive risk assessment framework helps identify opportunities where technology can create resilience while generating attractive financial returns.
Portfolio Deep Dive: From Treatment to Resource Recovery
Novo Holdings’ water technology investment portfolio exemplifies their strategic focus on innovations that address critical environmental challenges while delivering sustainable returns. Two standout investments, HPNow and Aquafortus, showcase how the firm translates its investment philosophy into tangible market impact.
HPNow represents Novo’s commitment to revolutionizing water treatment through sustainable chemistry. The company’s on-site hydrogen peroxide generation technology eliminates the need for hazardous chemical transport and storage while providing a safer, more efficient water treatment solution. This investment aligns perfectly with Novo’s emphasis on scalable technologies that can transform industrial processes.
Meanwhile, Aquafortus demonstrates Novo’s pursuit of breakthrough solutions in wastewater treatment and resource recovery. Their proprietary zero liquid discharge (ZLD) technology not only treats challenging industrial wastewaters but also recovers valuable minerals and chemicals, creating new revenue streams while solving environmental challenges.
These investments reflect several key aspects of Novo’s thesis in action. First, both companies offer solutions that simultaneously address environmental concerns and operational inefficiencies – a dual impact that strengthens their market position. Second, they demonstrate Novo’s preference for platform technologies that can be applied across multiple industries, from agriculture to mining.
The firm’s hands-on approach is evident in how these portfolio companies have evolved. Rather than simply providing capital, Novo has actively supported their expansion into new markets and applications. This strategic guidance has helped both companies refine their business models and accelerate their path to commercialization.
Crucially, these investments showcase Novo’s long-term perspective on water technology development. While many investors might shy away from the extended development cycles typical in water tech, Novo’s patient capital approach provides these companies the runway needed to perfect their technologies and build sustainable business models.
These case studies also highlight how Novo prioritizes solutions that can scale globally while maintaining strong unit economics. Both HPNow and Aquafortus have proven their ability to deliver value in multiple geographies and regulatory environments, validating Novo’s emphasis on adaptable, robust business models.
By examining these portfolio companies, we gain insight into how Novo Holdings evaluates and supports water technology ventures that can deliver both environmental impact and financial returns – a balance that’s becoming increasingly crucial in the water sector.
The Capital Deployment Strategy
Novo Holdings approaches water technology investments with a methodical yet flexible capital deployment strategy that reflects both its €142B asset base and long-term vision for the sector. The firm’s investment parameters are carefully structured to support companies across multiple growth stages while maintaining strong governance and value creation potential.
For early-stage investments, Novo typically deploys initial tickets between €5-15M, primarily through its REPAIR Impact Fund and Seeds platforms. These investments target breakthrough technologies in water treatment, resource recovery, and digital solutions. The firm takes a hands-on approach with early-stage portfolio companies, often securing board seats and working closely with management teams to refine commercial strategies.
In growth-stage opportunities, Novo’s ticket sizes expand significantly to €30-100M through its Principal Investments arm. Here, the focus shifts to companies with proven technologies and established market traction seeking to scale operations globally. These investments frequently involve structured equity solutions with clear paths to majority ownership. The firm maintains a strong preference for companies demonstrating both environmental impact and commercial viability, embodying their dual mandate of financial returns and sustainability outcomes.
Geographically, while Novo maintains Nordic roots, their water technology investments span Europe, North America, and select Asian markets. The firm leverages its global network to source deals and support portfolio company expansion, particularly in regions with acute water challenges or strong innovation ecosystems.
Critical to Novo’s strategy is their approach to follow-on funding. The firm typically reserves 50-100% of initial investment amounts for follow-on rounds, demonstrating long-term commitment to portfolio companies. This patient capital approach aligns with water technology’s often extended commercialization timelines and infrastructure-driven customer adoption cycles.
Board participation represents another key element of Novo’s engagement model. For investments exceeding €20M, the firm usually requires board representation, often placing senior investment professionals with relevant sector expertise. This governance approach enables Novo to actively support strategic decisions while monitoring investment performance and risk management.
Unlike traditional venture capital models, Novo’s evergreen structure allows for holding periods extending beyond typical fund lifecycles. This flexibility proves particularly valuable in water technology, where market development and technology adoption often require sustained support over 5-10 year horizons.
Partnership Dynamics: Co-Investment and Value Creation
Novo Holdings’ approach to partnership and value creation extends far beyond simple capital deployment. The Nordic investment giant has cultivated a sophisticated ecosystem-driven model that emphasizes strategic collaboration and hands-on support for portfolio companies.
At the core of their partnership strategy lies a commitment to co-investment with aligned partners. By carefully selecting co-investors who share their long-term vision and values, Novo Holdings creates powerful syndicates that bring complementary expertise and networks. This approach not only distributes risk but also amplifies the collective ability to support portfolio companies.
The firm’s value creation playbook centers on three key pillars: operational excellence, strategic guidance, and ecosystem leverage. Their in-house team of industry veterans works closely with portfolio companies to optimize operations, refine business models, and accelerate commercial traction. This hands-on involvement often includes embedding experienced operators within portfolio companies to drive specific initiatives.
Novo Holdings has developed particular expertise in bridging the gap between promising water technologies and commercial adoption. Their deep relationships with utilities, industrial players, and regulatory bodies help portfolio companies navigate complex stakeholder landscapes and accelerate market entry. As demonstrated in their water tech investments, they leverage their position to facilitate pilot projects, regulatory approvals, and commercial partnerships.
The ecosystem-building efforts extend to fostering collaboration between portfolio companies. Regular knowledge-sharing sessions and technology integration initiatives create opportunities for companies to benefit from each other’s capabilities. This network effect has proven especially valuable in the water sector, where integrated solutions often deliver superior outcomes.
Beyond tactical support, Novo Holdings takes an active role in shaping strategic direction. Their board participation typically focuses on helping companies make critical decisions around market entry, geographic expansion, and strategic partnerships. The firm’s global presence and cross-sector expertise prove particularly valuable when portfolio companies pursue international growth or explore adjacent markets.
The firm has also pioneered innovative financing structures that align incentives across stakeholders. These include milestone-based funding tranches, strategic co-development agreements, and creative licensing arrangements. This flexibility in deal structuring helps accommodate the diverse needs of water tech companies at different stages of development.
Most notably, Novo Holdings’ partnership approach emphasizes patience and persistence. As highlighted in a recent analysis of impact investing approaches, their long-term capital structure enables them to support companies through extended development and commercialization cycles common in water technology. This patient capital perspective, combined with active value creation, has established Novo Holdings as a partner of choice for ambitious water tech innovators.
The Strategic Vision
At the heart of Novo Holdings’ approach to water technology lies a profound understanding that water isn’t merely another checkbox on the environmental, social, and governance (ESG) agenda. The Nordic investment giant recognizes water as a critical nexus between their established expertise in healthcare and their commitment to sustainability.
Novo Holdings’ strategic vision for water technology investments stems from their unique position as a long-term investor with deep scientific roots. Their perspective on water innovation transcends traditional infrastructure plays, focusing instead on breakthrough technologies that can fundamentally transform how we treat, monitor, and recover resources from water.
The firm’s investment thesis in water technology rests on three primary pillars. First, they target solutions that enhance water treatment efficiency while reducing energy consumption and chemical usage. This approach aligns perfectly with their broader mission of promoting sustainable development while delivering strong financial returns.
Second, Novo Holdings actively seeks technologies enabling advanced water monitoring and quality control systems. This strategic focus mirrors broader industry trends toward digitalization and data-driven decision-making. Their investments in this space typically target innovations incorporating artificial intelligence, sensors, and real-time analytics to revolutionize water quality management.
The third pillar focuses on resource recovery – technologies that transform water treatment from a cost center into a value generator. This includes innovations in nutrient recovery, energy production from wastewater, and the extraction of valuable materials from water streams.
What sets Novo Holdings apart is their patient capital approach. Unlike traditional venture capital firms seeking quick exits, they maintain a longer investment horizon, typically 7-10 years or more. This timeline allows portfolio companies to develop and refine their technologies properly, conduct thorough pilot programs, and build sustainable business models.
Moreover, Novo Holdings leverages its extensive healthcare expertise to evaluate water technologies that intersect with public health concerns. This unique perspective enables them to identify and support innovations addressing emerging contaminants, pharmaceutical residues in water, and other health-related water quality challenges.
Their strategic vision also encompasses a strong focus on scalability. The firm prioritizes technologies that can be deployed globally, particularly in regions facing severe water stress or quality issues. This approach not only maximizes potential returns but also amplifies the positive impact of their investments on global water security.
Portfolio Deep Dive
Novo Holdings’ water technology investment portfolio reflects a sophisticated understanding of the sector’s complex challenges and opportunities. With stakes in companies like Synapta Technologies, the Nordic investment giant focuses on breakthrough solutions in water treatment, monitoring, and resource recovery – but with a distinct approach to deal structuring and technology selection.
The firm typically deploys capital in ticket sizes ranging from €10-50 million, targeting growth-stage companies with proven technologies and clear paths to scale. This sweet spot allows Novo to take meaningful ownership positions while providing enough capital to drive significant commercial expansion. Their portfolio companies often share common characteristics: strong intellectual property protection, capital-efficient business models, and technologies addressing major pain points in municipal or industrial water markets.
A clear pattern emerges in Novo’s technology focus areas. The firm shows particular interest in advanced treatment technologies that can handle emerging contaminants like PFAS, innovative digital solutions for infrastructure monitoring, and resource recovery technologies that align with circular economy principles. This strategic focus demonstrates their thesis that water technology must evolve beyond traditional treatment approaches to address 21st-century challenges.
The investment patterns also reveal a preference for platform technologies – solutions that can be applied across multiple market segments or geographies. This approach allows portfolio companies to diversify revenue streams and reduce market-specific risks. Additionally, Novo frequently structures deals to include governance rights and board representation, enabling them to actively support portfolio companies’ strategic development.
What sets Novo’s water technology investments apart is their patient capital approach. Unlike traditional venture capital firms operating on shorter time horizons, Novo demonstrates willingness to support portfolio companies through longer commercialization cycles typical in the water sector. This patience, combined with their deep sector expertise and extensive network, makes them an attractive partner for water technology companies seeking not just capital, but strategic support for long-term growth.
Notably, Novo’s water investments often leverage synergies with their healthcare and life sciences portfolio. For instance, several of their water technology investments focus on removing pharmaceutical compounds from wastewater or developing monitoring solutions with applications in both environmental and healthcare settings. This savvy approach to leveraging cross-sector opportunities mirrors successful strategies outlined in recent analyses of water technology commercialization.
The Entrepreneur’s Perspective
For water technology entrepreneurs seeking strategic investment partners, Novo Holdings stands out as an increasingly compelling option in the sector. With its deep pockets and patient capital approach, the Nordic giant offers more than just funding – it brings a unique blend of scientific expertise, commercial acumen, and extensive industry networks.
Novo’s due diligence process, while thorough, reflects their scientific foundation and understanding of complex water technologies. Rather than focusing solely on financial metrics, their evaluation heavily weighs the technological innovation’s potential impact on water sustainability challenges. The firm’s technical experts work closely with entrepreneurs to validate solutions, often leveraging their network of industrial partners for real-world testing and validation.
Beyond capital deployment, Novo Holdings provides strategic value through its vast network of industry connections, particularly in Europe and North America. For water tech startups, this translates into introductions to potential customers, partners, and future investors. Their deep relationships with utilities, industrial water users, and regulatory bodies can accelerate market entry and expansion strategies.
What truly sets Novo Holdings apart is their long-term investment horizon, which aligns well with the extended development and adoption cycles common in water technology. Unlike traditional venture capital firms that typically seek exits within 5-7 years, Novo can maintain investments for 10+ years, giving entrepreneurs breathing room to build sustainable businesses rather than chase quick wins.
In evaluating potential investments, Novo Holdings prioritizes three key elements: technological differentiation, clear market validation, and scalable business models. They particularly value solutions that address critical challenges like water scarcity, quality monitoring, or energy efficiency in treatment processes. The firm’s growing interest in water technology reflects a broader recognition of water as a critical investment theme for environmental and social impact.
As discussed in The Secret Formula for Profit in Water Tech Venture Capital, entrepreneurs should expect rigorous questioning about their technology’s competitive advantages, market positioning, and growth strategy. Novo’s investment committees seek clear evidence of customer traction and a well-defined path to profitability, even if current revenues are modest.
For founders, partnering with Novo Holdings means joining a portfolio that includes some of the water sector’s most innovative companies. This creates opportunities for knowledge sharing, potential collaborations, and strategic partnerships within the portfolio. Their hands-on approach to portfolio management ensures ongoing support in areas like talent acquisition, strategic planning, and subsequent fundraising rounds.
Future Horizons
As Novo Holdings charts its course forward in water technology investments, several strategic priorities are crystallizing that will shape the sector’s evolution. The firm’s massive €142B war chest positions it to drive transformative change across multiple frontiers of water innovation.
Decarbonization stands as a central focus, with Novo actively seeking technologies that can help water and wastewater operations achieve net-zero goals. This includes advanced energy recovery systems, low-carbon treatment processes, and smart optimization solutions that reduce energy intensity. The intersection of water and climate tech represents a particularly promising investment thesis.
Digital transformation emerges as another key theme, with artificial intelligence and IoT capabilities enabling unprecedented operational insights and efficiency gains. Novo recognizes that tomorrow’s water solutions must seamlessly integrate advanced analytics, machine learning, and automation to address mounting infrastructure and resource challenges.
Circular economy approaches are also garnering increased attention, particularly technologies enabling water reuse, resource recovery, and closed-loop industrial systems. The firm sees tremendous potential in solutions that can extract value from wastewater while minimizing environmental impact.
For entrepreneurs and co-investors looking to engage with Novo Holdings, several factors will be critical. The firm prioritizes scalable solutions with clear paths to commercialization and measurable impact metrics. Strong management teams with deep domain expertise and proven execution capabilities remain essential. Additionally, technologies that can demonstrate material advantages in efficiency, cost, or environmental performance compared to incumbent solutions will stand out.
Perhaps most importantly, Novo seeks opportunities that align financial returns with positive environmental and social outcomes. As highlighted in their investment philosophy (https://dww.show/how-to-mitigate-4-shades-of-water-risk-through-impact-investing/), the ability to generate both profit and purpose is non-negotiable.
Looking ahead, we can expect Novo Holdings to maintain a disciplined yet ambitious approach to water technology investments. Their deep expertise in life sciences and sustainability, combined with patient capital and strategic support capabilities, positions them to play an increasingly influential role in addressing global water challenges. The firm’s future moves will likely catalyze broader market interest while setting new standards for impact-oriented water investing.
Final words
Novo Holdings emerges as a distinctive force in water technology investment, bringing both substantial capital resources and a thoughtful approach to portfolio development. Their investment strategy reflects a deep understanding of water sector challenges and opportunities, particularly in treatment innovation and resource recovery. With ticket sizes ranging from $10-100 million in planetary health investments, they offer meaningful growth capital while maintaining flexibility across investment stages. The firm’s willingness to take board seats and provide strategic guidance suggests a commitment to long-term value creation beyond mere capital deployment. For water entrepreneurs, Novo Holdings represents not just a source of funding, but a partner with the patience and expertise to support breakthrough technologies to market. For co-investors, they offer a credible and collaborative partner with sector expertise and a global perspective. As water challenges intensify globally, Novo Holdings’ strategic focus on water technology positions them to play an increasingly vital role in advancing solutions while generating attractive returns. Their approach balances commercial viability with environmental impact, suggesting a sustainable model for water technology investment that could inspire broader institutional participation in the sector.
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