Why we invest in Water Tech
The Climate Emergency and the Future of Water Security
In 2023, the global average temperature reached +1.48°C above pre-industrial levels, driven by the return of El Niño. This accelerated ocean warming is continuing into 2024, raising concerns that the +1.5°C limit set by the UN could be exceeded this year. If this trend persists, it is likely that annual warming of +1.5°C will become the norm within the next decade, amplifying the impacts of climate change, especially through significant disruptions to the water cycle. This calls for substantial investments to mitigate economic repercussions.
The Water Cycle at the Heart of Climate Challenges
Currently, 69% of the impacts of climate change are expressed through the water cycle. As global temperatures approach more than 1.5°C above pre-industrial levels, the need for adaptation is urgent, making water security a critical global priority. This context opens up new opportunities for private investors, as the demand for financing in water management continues to grow.
The Resilient Water Club: Investing in Tomorrow's Water Tech Solutions
It is with this vision that the "Resilient Water Club" was established. This investment club is dedicated to financing early-stage water tech startups (Pre-seed, Seed) as well as providing follow-on funding in Series A rounds. By supporting emerging innovations in the water sector, the Resilient Water Club aims to catalyze sustainable solutions to address the increasing water challenges and strengthen resilience against climate change.
A Transformation in Water Security Financing
Today, around 78% of global investments in water security come from the public sector. However, over the next decade, Global Water Intelligence predicts that this share will drop to 43%, while the total investment in water-related assets will rise from $3.8 trillion to $12.6 trillion. This shift highlights the crucial role that private capital will need to play in funding water infrastructure and services.
An Inevitable and Necessary Change
To tackle the combined challenges of climate change, urbanization, and shifting land use, a significant increase in water sector investments is unavoidable. The current economic models for financing water infrastructure and services will not be sufficient to attract the necessary funds. Therefore, innovation is needed not only in technology but also in financial solutions to ensure sustainable access to water resources.
Water: The Next Major Economic Transformation
Three mega-trends have shaped the global economy over the past 50 years. Now, water security is emerging as the next major transformation. By investing in water tech startups, the Resilient Water Club is helping to prepare for the future, supporting the solutions that will shape resilience and sustainability in the years to come.