Water is the foundation of life, essential for ecosystems, human survival, and economic prosperity. Despite covering 71% of the Earth’s surface, only 3% of the planet’s water is freshwater, of which less than 0.3% is readily accessible for human consumption.
While technological advancements have enabled access to underground aquifers for human and industrial use, over-extraction is depleting these reserves at an alarming rate. Rapid urbanization, rising agricultural demands, and poor water management are depleting global water supplies. With droughts and erratic rainfall becoming more frequent, conserving and managing water efficiently is more crucial than ever.
Climate Tech plays a pivotal role in addressing the global water crisis by driving innovation in conservation, treatment, and reuse. An estimated $6.7 trillion of investment in water-related infrastructure is needed by 2030 to achieve UN’s Sustainable Development Goal 6 to deliver clean water and sanitation. Despite this urgency, water solutions received just 1-2% of annual Climate Tech investment, highlighting a significant funding gap. Closing this gap is critical to scaling technologies to secure long-term water availability and quality for a rapidly growing global population.
Solutions across Water
Ensuring long-term water sustainability requires a comprehensive approach to conservation, management, and infrastructure modernization. The Climate Tech Taxonomy provides a structured framework for categorizing solutions across water treatment, conservation and efficiency, management and distribution.
Water Treatment
Wastewater treatment is a significant yet often overlooked source of greenhouse gas (GHG) emissions. This is due to the breakdown of organic matter in sewage, nutrient removal, and the handling of by-products.
Water treatment plays an important role in ensuring water quality and availability while mitigating environmental impact. Climate Tech innovations in water treatment include remediation, disinfection, filtration, desalination, and contaminant removal. Additionally, resource recovery solutions enable the extraction of valuable materials such as phosphorus and salts, for reuse in industrial applications and extracting dissolved methane to reduce emissions from wastewater.
Notable Startups to Watch in Water Treatment
Epic Cleantec specializes in onsite water reuse solutions for buildings. The company recycles wastewater into three sustainable outputs: for irrigation and cooling, recovered heat for domestic hot water, and for landscaping. Their system treats greywater, blackwater, stormwater, and rainwater for safe reuse. In November 2024, the company raised $12M in Series B funding from various investors.
Flocean AS develops ocean-friendly desalination systems using subsea reverse osmosis technology to produce freshwater at a low cost and low carbon footprint. Their solution addresses global water shortages for households, farms, and industries. The company raised $8.93M in Series A funding in February 2025 from various investors.
Claros Technologies provides advanced water treatment solutions for removing per- and polyfluoroalkyl substances (PFAS) from wastewater. Their system enables testing, capture, concentration, and destruction of these persistent contaminants. In October 2024, the company raised $700K in Series B funding from various investors.
Water Conservation and Efficiency
Water conservation is not only essential for sustainability, but it also offers significant cost-saving benefits. It reduces the need for new water infrastructure and lowers expenses related to freshwater extraction and wastewater treatment, particularly in water-scarce regions.
Efforts to improve water conservation and efficiency focus on developing and deploying technologies that minimize water wastage, optimize usage, and promote responsible water management.
Climate Tech is transforming water conservation with innovative solutions across sectors. Buildings benefit from greywater recycling, rainwater harvesting, and green roofs. Agriculture is adopting smart irrigation and drought-resistant crops. Industries are embracing waterless manufacturing, while the energy sector advances waterless solar panel cleaning and closed-loop cooling systems.
Notable Startups to Watch in Water Conservation and Efficiency
Elicit Plant develops plant-based solutions to enhance drought tolerance and reduce water consumption. Their phytosterol-based technology improves resilience in crops like corn, sunflowers, barley, and wheat, reducing water stress and improving yields. They raised $49M in Series B funding in November 2024 from various investors.
FIDO AI uses artificial intelligence to detect and locate leaks in water distribution networks. Their cloud-based platform provides real-time insights, helping utilities and industries prevent water loss, optimize resources, and cut costs. The company closed a Series B round in October 2024 from investors including CRH Ventures, SKion Water, and Emerald Technology Ventures.
Water Management
Efficient water usage both reduces costs for households and industries and contributes to greater sustainability in the long term. By proactively managing water-related risks, industries can strengthen water management efforts where water availability and efficiency directly impact production and cost structures.
Today Climate Tech solutions are advancing water management through smart monitoring systems, real-time data analytics, water risk assessment, water conservation loans, and other integrated resource management platforms.
Water Management Startups That Should Be on Your Radar
US-based company FTD Solutions Inc has developed a unique Water Management Application to help industrial, commercial, and institutional users optimize water usage and infrastructure performance. The platform enhances operational efficiency, ensures environmental compliance, and reduces costs while supporting sustainability goals. FTD Solutions closed a $10M Series A funding round from Ecolab in October 2024.
FluxGen Sustainable Technologies is an industrial water management company that helps monitor and analyze water consumption in real-time. It enables industries to reduce costs, minimize wastage, and meet regulatory requirements. FluxGen raised $3.22M in Series A funding in March 2025 from various investors.
Water Distribution
Water distribution relies on advanced monitoring and control technologies to optimize flow, pressure, and quality across the network. Smart meters and sensors deliver real-time data on consumption patterns and leaks, allowing utilities to identify and address inefficiencies swiftly, reducing water losses.
Startups in Water Distribution to Watch
Flocean AS specializes in low-carbon desalination technology, using subsea reverse osmosis to deliver affordable freshwater. Their solution provides a sustainable alternative for water distribution in drought-prone regions. The company raised $8.93M in Series A funding in February 2025 from various investors.
Singapore-based Agros offers solar-powered irrigation systems, customized fertilizers, and financial solutions like post-harvest payment schemes and crop insurance. Their innovations help farmers optimize resources and increase productivity. In March 2025, they raised $4.25M in Series A funding from various investors.
Climate Tech is Unlocking the Next Chapter in Water Resilience
Sustainable water management is essential for building climate resilience and ensuring long-term water security. Climate Tech is driving advancements in water conservation, reuse, and efficiency, helping to reduce pressure on freshwater resources. However, scaling these solutions requires significant investment in water-related infrastructure and innovation to accelerate the development of next-generation water technologies.
With detailed insights into capital flows, market trends, and technological advancements, investors and businesses can identify high-impact opportunities in water solutions and drive sustainable innovation in water management.
Interested in exploring how smart water technologies are gaining ground? Request a free trial to explore all things water tech!
