Startups with a water focus are still receiving plenty of funding

Despite a global decrease in venture capital investment, funding for businesses developing water conservation and purification solutions has not ceased in recent months.

Despite a general worldwide decline in venture capital investment, funding for businesses developing solutions linked to water conservation and purification has not stopped in recent months. This was the conclusion drawn from a review of funding for water sector categories on Crunchbase. In fact, investment totals for 2023 exceeded those for 2021, when the startup finance environment was considerably more buoyant.

They plotted annual investment since 2019 for companies in the water, water purification, and water transportation categories to give an idea of how the figures compare. The largest rounds are awarded to businesses that take on extraordinarily complex issues and frequently tap into international markets right away.

More than 650 million people in nearly 40 countries currently face water scarcity, according to the World Water Forum. Worldwide population increase, industrial development, misuse, climate change, and inadequate water management have put groundwater supplies in grave danger.

While startups don't promise instant fixes, they do present some potentially significant advancement over the current situation. That's been enough to draw in a consistent flow of cash.

The largest beneficiary on the list is the sustainability-focused business, Gradiant, located in Boston, which specializes in wastewater treatment. The company has raised over $390 million in capital thus far, with the most recent round being a $225 million Series D in May.