Big Cleantech: Investing in Water Innovations

May 22, 2012 | State of the Market Report

Investments in water treatment and conservation technologies have been funded by $3.1 billion in private investments since 2007, and the innovation sector is a fraction of water activity overall. Mergers and acquisitions (M&A) dominate in the water sector with a diverse group of buyers, frustrating venture capitalists who hold initial public offerings (IPO) as the gold standard. In the water industry, M&As dominate and give a better, and more timely, return on investment. While outsiders see it as monolithic, water is a highly fragmented industry. Each sector of water is unique, with different timelines for venture funding, growth equity, and exit windows. Investors and buyers alike will find opportunties in active regions of the hydrocosm.

Coverage Areas

  • Digital Transformation
  • Owning the Energy Transition

Table of Contents

  • Executive Summary
  • Landscape
    Financing for water technology innovations has recovered from the recent economic downturn. M&A activity continues to be the exit of choice while IPOs remain rare.
  • Analysis
    In the fragmented water sector, each technology and application has a unique story. The largest sectors don’t necessarily translate to the smartest opportunities.
  • Outlook
  • Endnotes