Water scarcity is no longer a distant threat—it’s a present-day crisis affecting billions. As freshwater demand surges and climate change disrupts global hydrological cycles, investment in next-gen water technologies is essential. Climate Tech innovators are stepping up with solutions for water conservation, treatment, and reuse—but scaling these technologies requires serious capital.
Investors across venture capital, corporate ventures, public agencies, and banks are fueling this momentum. From greywater recycling to smart sensors and desalination, these players are shaping the future of sustainable water systems through strategic funding decisions.
Five Most Active VC InvestorsÂ
These venture capital firms are backing early-stage companies developing transformative technologies to secure the future of water resources.
- Breakthrough Energy Ventures is dedicated to clean energy and climate solutions. With a focus on environmental services and cleantech, they have closed 12 deals in early-stage water innovation companies.
- SOSV is global venture capital firm specializing in early-stage startup development. They have invested in 12 water solutions companies, primarily at the seed stage, to drive innovation in water sustainability.
- Katapult is a Norwegian venture capital firm investing in scalable impact tech startups across ocean, climate, and food tech. Katapult has closed 15 deals, supporting early to late-stage companies working on water conservation and resource efficiency.
- Chalmers Ventures is a Swedish-based venture capital firm investing across seed, early, later-stage, and growth-stage companies. In the water sector, they have completed 11 deals, primarily in early-stage startups.
- Almi Företagspartner is a Sweden-based venture capital firm with a diverse portfolio spanning 350 companies across multiple industries. They have invested in 11 early-stage water innovation companies, driving advancements in water technology.
Five Most Active CVC Investors
These corporate investors are supporting water-focused innovation through startup funding and accelerator programs.
- Shell is a British multinational oil and gas company focused on finding zero waste and efficient resource use solutions, including water conservation. Shell has invested in eight Climate Tech water solutions, primarily in early-stage companies, with select acquisitions and grants.
- HCLTech is an Indian multinational corporation committed to funding scalable and sustainable solutions that restore freshwater ecosystems. Through its HCL Global Water Challenge, the company has funded nearly 10 water-focused startups to drive conservation and resilience.
- Technology giant Microsoft aims to become water-positive by replenishing more water than it consumes and scaling global water access projects. Microsoft has invested in six early-stage companies and accelerator/incubator programs focused on water innovation.
- Amazon actively supportes water stewardship projects, investing in water reuse infrastructure, and wastewater treatment initiatives. Amazon has backed five projects through accelerator/incubator programs and early-stage investments.
- Accenture has interests in developing water resilience strategies in water-scarce areas. Accenture has invested in five projects across early- and late-stage companies to drive sustainable water management solutions.
Five Most Active Government Agencies
These are some of the leading government agencies funding for water conservation, resilience, and circular water use.
- The European Commission actively promotes research and innovation in water conservation, management, and governance, including circular water use. It has funded 124 projects aimed at enhancing water availability and sustainability.
- The U.S. Department of Energy (DOE) is committed to address energy and environmental challenges, hence awarding 113 grants to projects developing advanced water solutions.
- The UK Research and Innovation (UKRI) supports research on water consumption, flood mitigation, and drought resilience. UKRI has awarded more than 100 grants to projects improving water sustainability.
- The National Science Foundation (NSF) is a US-based agency working towards advancing equitable and innovative water solutions. It has awarded over 100 grants to water resource management projects.
- The U.S. Department of Defense (DoD) invests in research across energy, climate resilience, and environmental remediation. It has awarded more than 60 grants to projects tackling water-related challenges.
Five Most Active Banks
These are some of the banks financing water projects in infrastructure, analytics, and efficient resource utilization.
- Gorham Savings Bank is a US-based commercial bank. They have supported two water-related projects, providing funding through both a grant and debt financing.
- Silicon Valley Bank is focused on developing climate resilience. They have financed one project in Climate Tech water solutions.
- Mitsubishi UFJ Financial Group is a Japanese financial institution which has backed a project aimed at improving water conservation through efficient resource utilization.
- UniCredit is an Italian commercial bank committed to promoting sustainable solutions in wastewater treatment and water conservation, providing debt financing for a project in this sector.
- Canadian Imperial Bank of Commerce (CIBC) has made a single debt investment in a water data management and analytics project.
Financing the Next Generation of Water Solutions
In 2024, water solutions received just 1–2% of total Climate Tech investment—even as freshwater resources continue to shrink at an alarming rate. We urgently need better technologies for conservation, smarter water management systems, and upgraded treatment infrastructure to safeguard this limited precious resource.
We urgently need better technologies to strengthen conservation efforts, modernize treatment systems, and improve how we manage and monitor water resources. Climate tech is opening new frontiers in how we conserve, recycle, and manage water, but scaling these innovations depends on closing the funding gap.
Smart capital deployment can fast-track progress across water treatment, reuse, conservation, and real-time resource management—helping build more resilient, water-secure systems for the future.
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