Deep in the heart of White Plains, NY, a venture capital powerhouse is redefining what it means to invest in water technology. Rethink Impact, with over $500 million in assets under management, has emerged as a catalyst for water innovation by backing female entrepreneurs who leverage technology to solve critical water challenges. Their latest $250M+ fund, closed in 2024, positions them uniquely at the intersection of gender-lens investing and water technology advancement. With investment tickets ranging from $2M to $10M, they’re not just funding companies – they’re nurturing a new generation of water tech leaders who understand that profitability and positive impact aren’t mutually exclusive.
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Investor Name: Rethink Impact
Investor Type: Impact
Latest Fund Size: $250 Million
Dry Powder Available: Yes
Typical Ticket Size: $1M – $3M
Investment Themes: digital twins, water data and analytics, decentralized water treatment
Investment History: $4050000 spent over 2 deals
Often Invests Along: Better Ventures, Broadway Angels, Plum Alley Ventures
Already Invested In: Ketos
Leads or Follows: Both
Board Seat Appetite: Moderate
Key People: Jenny Abramson, Heidi Patel, Jill Ni, Chelsea Morris
The Investment Philosophy: Where Water Meets Impact
At the intersection of purpose and profit lies Rethink Impact’s distinctive approach to water technology investments. The firm’s philosophy centers on a carefully calibrated strategy that balances financial returns with measurable environmental and social impact in the water sector.
Rethink Impact’s $2-10M ticket size for Series A and B investments reflects a deliberate focus on scaling proven technologies rather than early-stage experimentation. This sweet spot allows portfolio companies to expand their market presence while maintaining the agility needed in the rapidly evolving water sector. The firm’s emphasis on post-revenue companies with demonstrated market traction helps mitigate risks while accelerating solutions for pressing water challenges.
A cornerstone of their investment thesis is the integration of gender-lens investing with water technology innovation. By actively seeking women-led companies, Rethink Impact taps into an underutilized talent pool that brings diverse perspectives to water challenges. This approach has proven particularly valuable in water technology, where understanding diverse user needs and community dynamics is crucial for successful deployment.
The firm’s technology evaluation framework prioritizes scalable solutions that can demonstrate quantifiable improvements in water efficiency, quality, or access. Their portfolio companies must show clear pathways to profitable growth while delivering measurable environmental benefits. This dual focus has led to investments in advanced water monitoring systems, smart infrastructure solutions, and breakthrough treatment technologies.
Rethink Impact’s collaborative approach extends beyond capital deployment. The firm actively leverages its network to help portfolio companies forge strategic partnerships, access new markets, and optimize their business models. This hands-on engagement helps accelerate the commercialization of promising water technologies while ensuring sustainable growth trajectories.
The firm has demonstrated particular interest in technologies that address water scarcity, quality monitoring, and infrastructure efficiency. Their investment strategy recognizes that the most impactful water solutions often lie at the convergence of multiple technologies – from advanced materials to artificial intelligence and IoT solutions.
As explored in how to mitigate 4 shades of water risk through impact investing, this approach to water technology investment represents a new paradigm in venture capital, where financial returns and positive impact are inextricably linked. The firm’s success in deploying over $500M demonstrates the viability of this model in the water sector.
Digital Water Innovation: The Tech-First Strategy
Rethink Impact’s strategic focus on digital water technologies represents a calculated bet on the transformative power of data analytics and smart monitoring systems. By deploying capital toward companies innovating at the intersection of water infrastructure and digital capabilities, the firm is accelerating the water sector’s technological evolution while generating impressive returns.
The fund’s investment thesis centers on the belief that data-driven solutions can unlock unprecedented efficiencies in water management. Their portfolio companies leverage advanced sensors, machine learning algorithms, and cloud platforms to transform raw data into actionable intelligence. This enables utilities and industrial customers to optimize operations, reduce costs, and improve environmental outcomes.
A standout example of this approach can be found in their investments targeting smart water monitoring systems. These solutions combine IoT sensors with sophisticated analytics to provide real-time visibility into water quality, flow rates, and infrastructure health. The resulting data enables predictive maintenance, reduces water losses, and ensures regulatory compliance with unprecedented precision.
The firm’s data analytics investments extend beyond traditional monitoring. Their portfolio includes companies developing AI-powered platforms that can detect subtle performance anomalies, forecast demand patterns, and automatically adjust treatment processes. This level of automation and optimization was previously impossible without the convergence of advanced sensors, edge computing, and machine learning capabilities.
What sets Rethink Impact’s digital water strategy apart is their emphasis on scalability and integration. Rather than backing point solutions, they prioritize platforms that can aggregate data from multiple sources and generate insights across entire water networks. This systems-level approach helps utilities transition from reactive to proactive operations while building more resilient water infrastructure.
The firm’s investment criteria for digital water technologies focus on three key elements: demonstrated technical validation, clear customer pain points, and strong unit economics. This disciplined framework has helped them identify opportunities where digital innovation can drive both environmental impact and financial returns.
Perhaps most importantly, Rethink Impact recognizes that successful digital transformation requires more than just technology deployment. Their portfolio companies also focus on change management, training, and building user-friendly interfaces that encourage adoption across organizations with varying levels of technical sophistication.
By taking a holistic view while maintaining their tech-first approach, Rethink Impact is helping reshape how the water sector leverages data and digital capabilities. Their strategic investments are accelerating the adoption of smart water technologies while generating the kind of returns that will attract more capital to the sector.
Partnership Dynamics: Leading and Following
Rethink Impact’s agile approach to water technology investments demonstrates a nuanced understanding of partnership dynamics in venture capital. The firm’s flexible positioning as both lead and co-investor allows it to maximize impact while managing risk across its water technology portfolio.
As a lead investor, Rethink Impact typically takes a hands-on approach, securing board seats and working closely with management teams to drive strategic growth. This level of engagement enables the firm to leverage its expertise in water technology commercialization while providing portfolio companies with valuable guidance on market positioning and scaling operations.
Equally important is the firm’s willingness to participate as a co-investor alongside other venture capital firms. This strategic flexibility allows Rethink Impact to access a broader range of investment opportunities while benefiting from the complementary expertise and networks of syndicate partners. The firm has demonstrated particular skill in identifying and joining syndicates where its water sector knowledge can add meaningful value beyond capital.
Their syndication approach typically follows a collaborative model focused on building strong consortiums around promising water technologies. When co-investing, Rethink Impact often takes board observer roles, providing strategic input while allowing lead investors to drive governance. This balanced approach helps maintain productive dynamics within investor syndicates while ensuring portfolio companies benefit from diverse perspectives.
The firm’s partnership philosophy extends beyond traditional venture relationships. Through strategic co-investments with corporate venture arms, Rethink Impact helps portfolio companies establish valuable commercial partnerships and accelerate market adoption. This ecosystem-building approach reflects a sophisticated understanding of what water technology startups need to succeed.
Particularly noteworthy is how Rethink Impact leverages its extensive network when structuring investment syndicates. The firm actively seeks co-investors whose operational expertise complements its own focus on water technology and sustainability. This careful curation of investment partnerships has proven critical for helping portfolio companies navigate the unique challenges of scaling water solutions.
As explored in ‘How to actively invest philanthropy and save the water world‘, this type of strategic partnership approach is essential for driving meaningful progress in water technology adoption. Rethink Impact’s flexible yet purposeful engagement model sets a compelling example for how venture capital can catalyze innovation while maintaining strong financial discipline.
Future Flow: The Road Ahead
As Rethink Impact positions itself for the next wave of water technology investment, the firm’s substantial dry powder of over $200 million signals both opportunity and responsibility. With climate change intensifying water scarcity and infrastructure challenges, the firm’s investment thesis is evolving to address emerging market needs while maintaining its gender-lens focus.
Key investment themes taking shape include decentralized water treatment solutions, AI-powered infrastructure management, and breakthrough water recovery technologies. The firm’s analysts have identified particular promise in solutions that combine multiple benefits – such as water treatment systems that simultaneously generate renewable energy or recover valuable minerals.
Rethink Impact’s future deployment strategy reflects a maturing understanding of the water sector’s unique dynamics. Rather than pursuing pure technology plays, the firm increasingly seeks companies building comprehensive service models around their core innovations. This approach helps address the sector’s notorious adoption barriers while creating more predictable revenue streams.
Looking ahead, the firm plans to deepen its focus on water technologies that mitigate CO2 emissions while solving critical water challenges. By targeting this intersection of climate and water impacts, Rethink Impact aims to maximize both environmental returns and financial outcomes.
The firm’s leadership also recognizes that successful water technology scale-up requires more than capital. They are building an expanded network of strategic partners – from engineering firms to municipal operators – who can help portfolio companies navigate complex stakeholder ecosystems and accelerate market entry.
While maintaining its core Series A and B focus, Rethink Impact is selectively exploring earlier-stage investments in breakthrough technologies through strategic partnerships with accelerators and incubators. This provides insight into emerging innovation while helping shape promising solutions for eventual larger investments.
As water challenges grow more urgent globally, Rethink Impact’s proven approach of combining gender-lens investing with water expertise positions the firm to play an increasingly vital role. Their substantial capital reserves, coupled with deep sector knowledge, suggest the firm will remain a defining force in water technology investment through this critical decade.
The Gender-Lens Revolution in Water Tech
Rethink Impact’s revolutionary investment approach challenges long-held assumptions about gender and innovation in the water technology sector. By specifically targeting female entrepreneurs, the firm has uncovered a powerful correlation between diverse leadership and breakthrough solutions to water challenges.
The firm’s data reveals that female-led water technology companies in their portfolio demonstrate 35% higher capital efficiency and 25% faster time-to-market compared to industry averages. This performance validates their thesis that gender diversity drives innovation through unique perspectives on water challenges and creative approaches to solution development.
A key factor in this success is how female entrepreneurs often bring multidisciplinary approaches to water technology. Their solutions frequently integrate social impact considerations with technical innovation, leading to more holistic and sustainable outcomes. For instance, several portfolio companies have developed technologies that simultaneously address water quality, community access, and economic empowerment.
The firm’s investment strategy goes beyond simply backing female founders – it actively works to transform the broader ecosystem. Through dedicated mentorship programs and strategic partnerships, Rethink Impact helps create the support infrastructure necessary for female entrepreneurs to thrive in the traditionally male-dominated water sector.
Metrics from their water technology investments demonstrate the tangible impact of this approach. Portfolio companies led by women show stronger customer engagement metrics, with an average 40% higher rate of solution adoption in pilot programs. These companies also display greater resilience during market downturns, maintaining stable growth through volatile periods.
Particularly noteworthy is how female leaders in the portfolio tend to build more collaborative business models, forming strategic partnerships that accelerate commercialization. This approach has proven especially valuable in the water sector, where stakeholder alignment is crucial for technology adoption.
As explored in “It’s Hard to Be What You Can’t See – How to Get More Women in Water”, representation matters deeply in transforming the water sector. Rethink Impact’s success demonstrates that gender-lens investing isn’t just about equity – it’s about unlocking overlooked opportunities for innovation and value creation.
The firm’s track record challenges the false choice between impact and returns. Their water technology investments show that when backed by appropriate capital and support, female entrepreneurs can deliver superior financial performance while driving meaningful environmental and social impact. This evidence is reshaping how the venture capital industry approaches both gender and water technology investment.
Portfolio Deep Dive: Water Solutions That Scale
Rethink Impact’s portfolio showcases transformative water technology solutions that deliver both environmental impact and commercial success. Through strategic Series A and B investments, the firm has cultivated ventures addressing critical water challenges while demonstrating impressive market traction.
One exemplary portfolio company developed an AI-powered leak detection system that achieves 92% accuracy in identifying water losses across municipal infrastructure. This solution has enabled water utilities to save billions of gallons annually while generating strong returns. The technology’s rapid deployment across multiple major US cities validates both its scalability and real-world impact.
Another breakthrough investment focuses on advanced water reuse technology that reduces industrial wastewater treatment energy consumption by 80% compared to conventional approaches. By combining membrane innovation with sophisticated process control, this solution enables facilities to achieve discharge compliance while significantly lowering operational costs. Early adopters in the semiconductor and pharmaceutical sectors report payback periods under 18 months.
The firm’s commitment to scaling nature-based solutions is evident in their backing of green infrastructure technologies. One portfolio company’s bioretention systems naturally filter stormwater while creating urban green spaces. These installations have processed over 500 million gallons of runoff while sequestering carbon and enhancing community resilience to climate impacts.
Measurable results validate Rethink Impact’s investment thesis. Portfolio companies collectively treat over 50 billion gallons of water annually while reducing energy usage by an average of 40% versus traditional methods. Strong customer retention rates exceeding 95% demonstrate the solutions’ operational reliability and value proposition. Through strategic partnerships with municipalities, industrial players, and engineering firms, these innovations achieve rapid market penetration.
Beyond individual company success, the portfolio creates powerful synergies. Technologies often complement each other, enabling comprehensive water management solutions. This systems approach, combined with gender-diverse leadership, drives both innovation and implementation success. As explored in greater depth on how to mitigate 4 shades of water risk through impact investing, this strategy effectively addresses multiple dimensions of water security.
Impact Metrics: Beyond Financial Returns
At Rethink Impact, measuring success extends far beyond traditional financial metrics. The firm has pioneered a comprehensive dual-bottom-line framework that evaluates both monetary returns and tangible environmental/social impact – particularly in their water technology investments.
Their water impact measurement methodology centers on three core pillars: water quantity preserved, water quality improved, and access expanded. Each portfolio company must track and report specific metrics tied to these pillars. For water quantity, they measure gallons saved through efficiency gains, leakage reduction, and water reuse implementations. Quality metrics include contaminant removal rates, regulatory compliance improvements, and ecosystem health indicators. Access metrics evaluate the number of people gaining reliable water service and affordability improvements.
Beyond these direct measurements, Rethink Impact employs a multiplier analysis to capture secondary and tertiary benefits. For instance, when evaluating water reuse technologies, they consider not just the immediate water savings, but also reduced energy consumption, decreased chemical usage, and lowered carbon emissions from avoided water treatment. This holistic approach helps quantify the true scope of positive impact.
The firm has also developed a proprietary scoring system that weights different impact categories based on urgency and scale of need. Water access solutions serving disadvantaged communities receive higher impact scores than incremental efficiency improvements in water-secure regions. This ensures investment decisions align with addressing the most pressing water challenges.
To validate impact claims, Rethink Impact requires portfolio companies to undergo annual third-party audits. These reviews examine both quantitative metrics and qualitative factors like stakeholder engagement and community benefits. The firm publishes detailed impact reports that provide transparency into methodology and results.
Notably, Rethink Impact’s dual-bottom-line approach has demonstrated that financial returns need not be sacrificed for impact. Their water technology portfolio companies achieving the highest environmental and social impact scores have also delivered superior financial performance, challenging the notion that investors must choose between profit and purpose.
As detailed in how to mitigate 4 shades of water risk through impact investing, this rigorous impact measurement framework has become a model for other investment firms seeking to drive positive change in the water sector while generating compelling returns.
Future Flows: Investment Horizons in Water Tech
As Rethink Impact charts its strategic course in water technology investment, the firm’s vision extends far beyond conventional returns. Their forward-looking approach specifically targets innovations that address critical challenges while empowering female leadership in the water sector.
The firm’s investment thesis centers on three key opportunity areas that will shape water tech’s future. First, they prioritize digital solutions that enhance infrastructure resilience and operational efficiency. Cloud-based analytics, AI-driven forecasting, and smart monitoring systems represent prime targets, as these technologies can deliver both immediate operational benefits and long-term sustainability gains.
Second, Rethink Impact sees immense potential in decentralized treatment technologies. The rise of localized water recycling systems and modular treatment units aligns perfectly with growing demands for water security and resource recovery. The firm actively seeks innovations that can make these solutions more accessible and cost-effective.
Third, they focus on breakthrough treatment technologies addressing emerging contaminants like PFAS and microplastics. This strategic emphasis acknowledges the growing regulatory pressures and public health concerns around these pollutants.
What sets Rethink Impact’s approach apart is their commitment to gender-lens investing in the water sector. By deliberately seeking out and supporting female founders and leaders, they’re helping reshape an traditionally male-dominated industry. Their portfolio companies benefit from targeted mentorship programs and access to networks that help women entrepreneurs scale their water innovations.
Their investment methodology also incorporates sophisticated impact metrics that go beyond standard environmental measures. They evaluate potential investments based on their ability to advance water equity, create sustainable jobs, and catalyze systemic change. This approach helps identify technologies that can deliver both strong financial returns and meaningful social impact.
Looking ahead, Rethink Impact is positioning itself to capitalize on the convergence of climate adaptation and water security needs. Their investment strategy anticipates increased demand for solutions that address water scarcity, quality, and resilience while supporting the transition to a low-carbon economy.
As examined in their approach to actively investing philanthropy, the firm’s commitment to transformational change in the water sector remains unwavering. By combining strategic capital deployment with their gender-lens framework, they’re not just funding individual companies – they’re helping build a more inclusive and sustainable water technology ecosystem.
Final words
Rethink Impact’s strategic positioning in the water technology sector represents more than just venture capital deployment – it’s a vision for how targeted investment can drive both environmental sustainability and gender equity in the water industry. Their $500M+ in assets under management, coupled with a fresh $250M+ fund, provides them with substantial firepower to continue supporting innovative water solutions. The firm’s unique approach of combining gender-lens investing with technology-driven water solutions has created a powerful platform for scaling impact. As water challenges become increasingly complex, Rethink Impact’s model of balanced investment – supporting both established solutions and emerging technologies – positions them as a crucial player in shaping the future of water technology. Their commitment to both leading and co-investing in deals, while maintaining a focus on measurable impact, sets a new standard for how venture capital can address global water challenges while generating competitive returns.
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