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

      Temasek and the Grundfos Foundation have now joined the fund as it reaches its latest milestone, forming part of a larger effort to direct institutional funds into water technology innovation. Water scarcity is not a future issue; it is a current challenge that is already affecting agriculture, industry, and urban development across various continents. Historically, what has been lacking is the venture capital framework needed to finance companies tackling this issue. Emerald Technology Ventures, a Swiss firm with two decades of experience in the field, has been working to change this.

      This week, the Zurich-based company announced that its Global Water Fund II has achieved a total of €100 million, thanks to the engagement of two major investors: Temasek, Singapore’s state investment company that had previously supported Emerald’s first water fund, and the Grundfos Foundation, the parent organization of Grundfos, the largest pump manufacturer in the world, based in Denmark. Other investors in the fund comprise Veralto Corporation, Ecolab, SKion Water, and Oxy Technology Ventures.

      The fund held its initial close at €60 million in late 2025, and reaching €100 million puts it at two-thirds of its stated final target, although Emerald has not revealed a ceiling or timeline for completion.

      The reason water is drawing institutional investment is that water technology has traditionally been seen as a less glamorous area within the venture capital realm. It is essential but not particularly appealing, characterized by lengthy development cycles and regulatory challenges that discourage the rapid-moving capital flocking to domains such as AI and consumer software. What is changing now is the combination of urgent physical needs and industrial demand. The firms backing Emerald's fund are not just charitable organizations; they are companies like Ecolab, Grundfos, and Veralto, whose operations rely on the availability and quality of water, thus providing them with a financial incentive to support advancements in technology.

      Temasek's re-engagement in the fund is especially noteworthy, given that Singapore has prioritized water security for decades. The country imports a significant amount of its water from Malaysia and has made substantial investments in desalination and recycling technologies. Investment through Temasek in a global water technology fund aligns with this strategic focus.

      Founded in 2000, Emerald manages over €1 billion in assets from its offices in Zurich, Toronto, and Singapore. While the firm invests in startups addressing climate change and sustainability broadly, water has emerged as an increasingly critical area of focus. The specific portfolio companies of Global Water Fund II are not detailed, but the firm’s investment strategy emphasizes innovations in water treatment, efficiency, and monitoring, where there remains a significant gap between technological potential and commercial implementation.

      The broader implication of the fund's success may be as critical as its individual investments: institutional capital is starting to view water technology as an infrastructure investment rather than mere philanthropy. However, whether this transition is occurring swiftly enough to keep pace with global water stress is another matter, and a €100 million fund, no matter how effectively utilized, cannot resolve it alone.