In 2024, water tech investments shattered all previous records, reaching an unprecedented $1.12 billion. This represents a significant leap from the already impressive $861 million invested in 2023, which itself was a marked increase from earlier years. The billion-dollar barrier was more than symbolic: it highlighted a fundamental shift in investor appetite and the market’s readiness to support innovative solutions addressing global water challenges.
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7-Must-Know-Water-Tech-Trends-For-Investors-InfographicRiding the Billion-Dollar Wave
The leap from 2023’s investment levels signified a 29% volume increase year-over-year, complemented by a substantial rise in deal count (34%). However, despite this vigorous growth, the broader CleanTech landscape dwarfs water tech, pulling in $468 billion in 2023 alone. Thus, water tech, while growing, still represents a mere 0.2% of total CleanTech funding, underscoring the substantial room available for further investment.
Categories and Champions
Analyzing the investment landscape reveals fascinating trends among various categories. Digital Solutions maintained its position as the darling of investors, securing the highest deal count (39) in 2024, narrowly edging out Treatment Technologies (38 deals). However, the size of deals tells another story: Resource Recovery stood out with a hefty average deal size of $11.3 million, significantly higher than the sector average of $6 million. Metals and Minerals Extraction, a subcategory of Resource Recovery, emerged as the new VC darling, attracting an average round of $14.2 million. Meanwhile, Digital Solutions, despite its popularity, secured smaller rounds averaging just under $4 million.
The key takeaway? Investors prefer software and digital ventures for their frequency but show a stronger commitment to larger rounds in resource-intensive categories like Resource Recovery and Treatment Technologies.
Landmark Deals of 2024
The year witnessed notable deals reshaping the water tech funding landscape. Lilac Solutions, specializing in lithium extraction, secured a $145 million Series C, immediately ranking it among the sector’s largest ever deals. Another standout, ZwitterCo, raised $58 million in a Series B, placing it within the top 10 historical rounds.
Other notable raises included Elicit Plant ($46 million), BE WTR ($45 million), 120Water ($43 million), and Avnos ($35 million), indicating robust investor confidence across diverse water tech solutions.
Fresh Faces and Big Names
Interestingly, 2024 attracted an influx of new investors, with 303 out of 383 cutting their first checks in water tech. Yet historical data reveals an underlying challenge: since 2018, out of 1,489 investors, only 250 returned for a second investment, indicating a retention issue within the sector.
Notably, prominent Silicon Valley figures like Reed Hastings (Netflix) and Eric Schmidt (Google) entered the fray, supporting SunCulture’s solar-powered irrigation solutions in Africa, signaling increasing mainstream appeal and high-profile endorsement for impactful water innovations.
Most Active Investors
A consistent group of investors has shown repeated commitment to water tech. Burnt Island Ventures continued to dominate, completing seven deals in 2024 alone, followed by PureTerra Ventures with four deals. Echo River Capital, Emerald Technology Ventures, SQM, and OurCrowd each conducted three deals, illustrating the focused interest of specialized funds.
Notably, OurCrowd’s unique crowdfunding-style approach allowed it to back multiple Israeli ventures, demonstrating creative investment models emerging in the space.
In terms of capital deployed, Halliburton Labs led the way, heavily investing in mineral recovery and lithium extraction ventures like Espiku and XtraLit, reinforcing the strategic value corporates see in aligning water tech innovations with energy transition goals.
Geographic Trends: America’s Grip Loosens
Geographically, the U.S. continued to lead but saw its share decrease from 55% historically to 47% in 2024. France (7.6%) narrowly surpassed the UK (7.5%) for second place, reflecting Europe’s strengthening innovation ecosystems.
Israel and the Netherlands maintained strong positions, while Kenya’s entry into the top 10 indicated growing investor confidence in emerging markets, notably Africa.
Real Price Tags: Understanding Round Sizes
Understanding the financial dynamics at play, average deal sizes varied significantly by stage: pre-seed rounds averaged $1 million, seed rounds at $3.5 million, Series A rounds around $9.2 million, Series B at $22.6 million, Series C at $44.6 million, and Series D averaging a hefty $105 million.
These figures underscore a clear escalation path and investor confidence growing at later stages, signaling a maturation of the water tech funding ecosystem.
The Exit Challenge
Despite record-breaking investments, 2024 saw limited exit activity, raising questions about the sector’s long-term viability.
Notable acquisitions included Real Tech by ABB, E2Metrix by Ovivo, and AquaOso by Growers Edge, but no blockbuster IPOs occurred. Industry experts, such as Tom Ferguson from Burnt Island Ventures and Clayton McDougald from Emerald Technology Ventures, emphasized patience and strategic positioning, predicting increased exit activities starting from 2026 onwards as current investments mature.
Future Prospects: A Maturing Market
Investor insights suggest optimism about sustained growth in 2025 and beyond. The water tech sector’s characteristic long development cycles and slower ramp-up to commercialization imply that successful exits and major profitability events are likely on the horizon rather than immediate outcomes. This patient capital approach aligns well with the specific demands of water tech ventures, which typically face significant technical and regulatory hurdles.
As companies navigate from early to late-stage investment rounds, average intervals of 2 to 3.5 years between funding rounds necessitate prudent cash management and strategic growth planning. Investors, therefore, are not only financing innovations but actively supporting operational resilience and sustainable business models.
Conclusion: Water Tech at an Inflection Point
Water tech funding in 2025 stands at an exciting juncture. Record-breaking investment levels indicate robust investor confidence, yet challenges remain in investor retention and achieving significant exits. The entry of high-profile investors, increased geographical diversity, and growing deal sizes suggest the sector is rapidly maturing. As investment rounds and exits become more sophisticated, water tech is set to evolve from a niche CleanTech subsector to a pivotal player in global sustainability efforts.
Stakeholders must embrace the long-term nature of water investments, managing expectations around exit timelines while strategically supporting ventures poised for scalability and global impact. Ultimately, 2025 will serve as a crucial year to validate recent investments and lay the groundwork for sustained sector growth, positioning water tech as a compelling, impactful investment domain in the global economy.