DEEP DIVE: Looking for water tech funding? These six VCs could be right for you

Clean water and healthy oceans have never been more important, as climate change exacerbates both water scarcity and pollution.

Yet water tech remains heavily underfunded by venture capital.

In 2024, global VC investments into water-technology startups finally broke the billion-dollar barrier, a record amount according to a report from Global Water Intelligence.

Still, that’s only a small percentage of the total investments into climate tech, despite water’s immense importance to the macro economy. According to WWF, the annual economic value of water and freshwater ecosystems is estimated to be US$58 trillion (€50 trillion) – equivalent to 60% of global GDP.

From an investment point of view, water startups are often divided into two categories: the ones focusing on freshwater solutions like drinking water and wastewater management, and the blue economy/ocean tech companies who deal with aquaculture, plastics and other marine innovations.

The good news for startups is that there are a growing number of investors who are specialising in precisely these sectors.

"You can’t be good at water unless you only do water," is the opinion of Burnt Island Ventures, which specialises in backing water tech startups around the world.

VCs with a more general approach are also increasingly turning their eyes toward the ocean.

As Impact Loop revealed last month, Helsinki-based Redstone Nordics has launched a new €25m fund to back startups tackling ocean challenges, with a special focus on the Baltic Sea.

"The blue economy is a $6 trillion industry with enormous untapped potential," Kaj Hagros, managing partner at Redstone Nordics, told Impact Loop at the time. "Yet, there’s a huge funding gap."

So whether you’re a founder working on filtration systems, flood protection or seaweed applications, we’ve put together a list of water-focused VCs who could be perfect for you.

PureTerra Ventures – Netherlands

"Clean water for all" is the slogan for PureTerra, a VC that specialises in investing globally in disruptive water technologies. PureTerra is looking especially for early-stage water startups backed by scientific solutions or AI-driven software. Its focus areas include smart infrastructure, industrial treatment, and digital water solutions.

PureTerra targets mostly Series A-B companies, and its first fund has a target size of €80m. That includes a €30m investment from the European Investment Fund.

Its portfolio companies include iFlux, a Belgian startup delivering insights for groundwater management, REDstack, a Dutch electrodialysis company, and Advantageous Systems LLC, which uses nanotechnology to produce purified water.

Burnt Island Ventures – USA

New York-based Burnt Island Ventures focuses exclusively on early-stage water tech companies across areas like industrial wastewater, utility software and commercial efficiency.

After an oversubscribed $30m Fund I, it is now reportedly raising a $50m Fund II.

While most of its investments are in the U.S., it takes a global approach with portfolio companies in Europe, Canada and New Zealand as well.

That includes Norwegian subsea desalination company Flocean, and compliance management software company SwiftComply in Ireland.

Emerald VC – Switzerland

Emerald VC focuses on sustainable industrial innovation across several sectors, where water and wastewater is one of five major focus areas. With more than €1b in total assets under management, Emerald invests in water tech startups within resilience, water quality and water conservation.

Its Global Water Fund II is set to launch in October with €150-€180m, aiming to invest in "technologies that address treatment, monitoring and emerging contaminants."

Working with giants like Microsoft and Temasek, Emerald has invested in companies like Switzerland-based bNovate Technologies, focusing on water quality monitoring, U.S.-based HydroPoint and Indian wastewater treatment company Indra.

Aqua-Spark – Netherlands

Aqua-Spark is a specialist fund dedicated to sustainable aquaculture. The Utrecht-based fund’s investments cover everything from fish farms to water tech and wastewater treatment systems.

Aqua-Spark invests globally, with a goal of putting together a portfolio of 60-80 companies. Former CEO Lissy Smit said last year that the fund had around €500m under management, with the goal of growing that to at least €3bn by 2030.

Notable portfolio companies include Indonesian startup eFishery and Protix Biosystems, a Dutch a maker of insect-based proteins for aquaculture feed.

Ocean 14 Capital – Luxembourg/UK

Ocean 14 Capital’s blue-economy fund focuses on two separate verticals: marine ecosystems – such as seaweed applications and circular plastics solutions – and food security, such as alternative fish proteins and sustainable fisheries.

Ocean 14 closed a €200m fund in 2024, which it says made it the largest private equity fund investing in the blue economy. Investors include former Skype founder Niklas Zennström and Monaco’s sovereign wealth fund.

Their strategy focuses more on late-stage venture and growth companies, with several of its ticket sizes around €10m.

Those include investments in Norway’s Ava Ocean and Dutch fish farm Kingfish Company.

ReOcean Fund – Monaco

The ReOcean fund was co-created by Prince Albert II of Monaco in in 2023 and aims to raise a fund of €100m targeting ocean innovations.

"There are very few tasks as vast, complex, overwhelming, and yet as urgent as the one we are dealing with here: to save the oceans," Prince Albert has said.

The fund invests across five themes, including solutions to plastic pollution, healthy seafood, climate-mitigation in shipping, restoration and ocean data.

The fund is primarily focused on Series A-B rounds and made its first investment in January, adding biodiversity monitoring company NatureMetrics to its portfolio.