EIF’s €30 Million Water Tech Fund Could Help Europe Scale Solutions for Water Security

The EIF commitment was signed at European Water Technology Week in Leeuwarden and is backed by the European Commission’s InvestEU programme.

The European Investment Fund (EIF) has committed €30 million to PureTerra II, a Netherlands-based venture capital fund investing in early-stage water technology companies, primarily in Europe. The fund follows PureTerra's first fund, which the EIF backed in 2021, and is managed by one of the first European venture capital teams focused exclusively on water.

The investment comes as water scarcity and pollution raise costs for factories, farms and utilities. The European Commission estimates that meeting existing EU water rules requires an additional €23 billion in investment each year. PureTerra II is designed to bring private capital to technologies that can help close that gap, strengthening water security, climate resilience and industrial competitiveness.

Turning water innovation into investment

The EIF commitment was signed at European Water Technology Week in Leeuwarden and is backed by the European Commission's InvestEU programme. Public funding alone cannot cover the scale of investment needed, so the fund is intended to help private capital reach companies developing practical water solutions.

EIF Chief Executive Marjut Falkstedt called the fund especially timely, pointing to pressure on Europe's water resources from climate change and heavy use. PureTerra partner Job van Schelven said European innovators already hold a strong position: four in ten water patents worldwide come from Europe, but too few technologies make it to industrial scale.

Help promising technologies reach full scale

PureTerra II focuses on early-stage companies working on water pollution prevention, clean-water processes, circular water systems and more efficient use of water. The goal is to help technologies move from promising ideas and pilot projects into broader deployment.

Van Schelven described capital and adoption as the main barriers, rather than a lack of ideas. Scaling proven technologies could improve water security and support the industries and communities that depend on reliable water supplies.

Regulation is creating a market for solutions

The fund aligns with the European Commission's European Water Resilience Strategy, the EIB Group's Climate Adaptation Plan and its Water Resilience Programme.

New EU requirements give utilities and industry specific reasons to invest. The recast Urban Wastewater Treatment Directive and proposed restrictions on PFAS under REACH will require advanced treatment, turning pollution control into a near-term spending need. The Commission has also set EU-wide targets on issues such as microplastics and water efficiency.

Building Europe's water security

After a warm, dry summer, water supply is increasingly tied to everyday life, environmental health and industrial operations. PureTerra II aims to back companies that can help recycle and reuse water, improve treatment and make available supplies go further.

The fund's focus links climate adaptation with Europe's economic resilience. If it can help more European water technologies reach commercial scale, its impact could extend from cleaner water systems to lower costs and more reliable resources for businesses and households.