Xylem has announced an expansion of its corporate venture capital investments, pledging $50 million to support emerging companies and water services providers tackling critical climate issues such as water scarcity, quality, and decarbonization.
The initiative is designed to accelerate the development of innovative water solutions. Xylem will make direct investments in startups pioneering disruptive water technologies and will also contribute to specialized venture capital funds. These investments are aligned with Xylem's strategic priorities, which include advanced treatment, digital technologies, and services for managing complex water systems.
“As water scarcity intensifies and demand grows, the need for innovative thinking has never been more acute,” said Sivan Zamir, Vice President, Xylem Innovation Labs. “Entrepreneurial founders and disruptive new technologies can be important sources of solutions to tackle some of the world’s greatest water challenges. By collaborating with a broad network of partners, including venture capital firms and startups, we believe that we can bring essential innovations to market at speed and scale.”
This expansion builds on the success of Xylem's existing partnerships. In 2022, the company invested $20 million combined in Burnt Island Ventures, which targets early-stage water innovation, and The Westly Group, which focuses on energy, Industry 4.0, and cybersecurity. The new framework will involve ongoing evaluations of potential investments in targeted venture capital funds and minority investments in startup companies.
