Emerald Technology Ventures has secured €100 million for a fund focused on water innovation.

      Temasek and the Grundfos Foundation have invested in the fund, which has recently exceeded its latest target, as part of a larger initiative to direct institutional capital toward innovations in water technology. Water scarcity is not a potential future issue; it is a current crisis, already affecting agriculture, industry, and urban development across various continents. Historically, there has been a lack of venture capital infrastructure to support companies tackling this challenge. Emerald Technology Ventures, a Swiss firm with twenty years of experience in the sector, has been working to address this gap.

      This week, the Zurich-based firm announced that its Global Water Fund II has reached €100 million, following the addition of two major investors: Temasek, Singapore’s state investment firm and a foundational supporter of Emerald’s first water fund, and the Grundfos Foundation, which owns Grundfos, the largest pump manufacturer in the world, based in Denmark. Prior investors in the fund also include Veralto Corporation, Ecolab, SKion Water, and Oxy Technology Ventures.

      The fund held its initial closing at €60 million in late 2025. The increase to €100 million accounts for two-thirds of a publicly stated final target, although Emerald has not revealed a cap or timeline for a complete closure.

      The appeal of water investments to institutional capital is notable. Traditionally viewed as an unexciting segment of the venture industry—essential yet lacking glamour, with lengthy development timelines and regulatory complexities that discourage fast-moving investments seen in AI and consumer software—water technology is now gaining attention due to a combination of urgent physical needs and industrial demand. The companies supporting Emerald’s fund are not charitable organizations; they are industry players like Ecolab, Grundfos, and Veralto, whose operations rely on the availability and quality of water, providing them with economic motivation to advance these technologies.

      Temasek's re-investment in the fund is particularly significant. Singapore has prioritized water security for decades, relying heavily on water imports from Malaysia and making substantial investments in desalination and recycling infrastructure. Temasek's involvement in a global water technology fund aligns with this strategic approach.

      Emerald, founded in 2000, manages over €1 billion in assets from its offices in Zurich, Toronto, and Singapore. The firm invests in startups addressing climate change and sustainability across the board, with water increasingly becoming a focal point. While the specific portfolio companies of Global Water Fund II have not been detailed, the firm's investment strategy emphasizes innovations in water treatment, efficiency, and monitoring—areas where there remains a significant gap between technological potential and commercial implementation.

      The broader implication of the fund’s progression may be as crucial as its specific investments: institutional capital is beginning to view water technology as an infrastructure investment rather than a philanthropic endeavor. However, whether this shift is occurring swiftly enough to keep pace with global water stress is another matter and cannot be determined solely by a €100 million fund, regardless of its effective deployment.