Venture capital firm Emerald Technology Ventures has closed its water impact fund at $100 million, with Singapore state-owned investment company Temasek as its cornerstone investor.
Other strategic investors in the fund include SKion Water, Ecolab and Microsoft, Emerald Technology said in a press release Wednesday.
Emerald Technology said the fund will invest in early- to expansion-stage companies globally for water sector innovation and adoption. That includes supporting technologies addressing challenges highlighted in the UN Sustainable Development Goals, such as conserving water resources, supporting services for sustainable cities, improving efficiency and adapting to climate change.
Brandon Middaugh, director of Microsoft’s Climate Innovation Fund, said the investment will help accelerate global water innovation.
“Addressing water challenges around the world will require transforming the way water systems are managed and advancing new technologies to reduce water consumption and increase water quality and replenishment,” he said in the statement.
Ecolab president and chief operating officer Christophe Beck added that demand for fresh water is expected to outpace supply by 40 per cent within 10 years.
“It will take new innovations to reduce consumption and balance supply and demand for this precious resource. The Emerald water impact fund will support and accelerate innovations in the water sector more quickly to help solve this pressing global challenge,” Beck said in the statement.
Emerald Technology, with offices in Singapore, Zurich and Toronto, has raised five venture capital funds, with more than 400 venture investments in 67 industrial technology players. It has managed five third-party investment mandates, including for the Singapore and Switzerland governments.
It has expertise in energy, water, industrial IT, advanced materials, mobility, robotics and agriculture.
Previous water sector investments by Emerald Technology have included ultra-filtration membrane product maker Inge, infrastructure planning software maker Optimatics and pipeline monitoring company Pure Technologies; Emerald Technology has exited those three investments.
SKion Water is a technology and service provider and plant manufacturer in the municipal and industrial water and wastewater sectors; it is a subsidiary of German entrepreneur Susanne Klatten’s investment holding SKion GmbH.
Ecolab is a water, hygiene and infection-prevention service provider.