Aging infrastructure, PFAS contamination, toxic waste, and agricultural runoff continue to jeopardize U.S. water safety. Legacy lead pipes still remain in service despite a 1986 ban, PFAS and industrial pollutants resist breakdown, and runoff containing pesticides degrades groundwater. Incumbents like Aqua America, Veolia, Clean Harbors, and Ecolab’s Nalco Water are deploying large-scale solutions—ranging from pipe replacement to chemical filtration. Meanwhile, new entrants like BlueConduit, Cyclopure, CIWI, and LWR are introducing AI detection, bio-based filters, electrochemical treatments, and nutrient recovery systems. Together, they signal a shift toward smarter, more sustainable water management under rising regulatory and environmental pressure.
Despite these advances, investment in water tech remains limited. Global VC funding grew from just $0.1B in 2016 to a peak of $1.6B in 2022, but has since declined to $0.7B in 2024. Water tech still receives only 2% of global climate VC funding—far below sectors like energy and transportation—despite its direct role in resilience and public health. Though recent deals, such as EQT’s acquisition of AMCS, WaterEquity’s $100M fund, and XPV Water Partners’ exits of Atlas-SSI and SmartCover reflect growing interest in the water tech space, water tech still remains an overlooked but essential lever. More strategic capital allocation toward this sector could accelerate innovation, support infrastructure modernization, and deliver public health benefits that have yet to be realized.
