IMPACT FUND DEDICATED TO WATER TECHNOLOGIES
In the context of the fight against climate change, the Cycle H2O fund invests in innovative companies that rethink water usage among its largest consumers: the municipal, industrial, and agricultural sectors.
Cycle Capital believes in the potential of innovation in the water sector to create sustainable prosperity for citizens, the environment, and the economy. This is why we have established, in partnership with H2O Innovation Inc., the Cycle H2O Fund to invest in and accelerate the growth of companies committed to the conservation, reuse, and protection of our most valuable collective resource: water.
Several factors justify the importance of investing in innovative startups to find solutions to the following challenges:
- 90% of climate-related issues are water-related phenomena (drought, flooding, wildfires, etc.);
- We consume more water than the planet can sustainably provide ("Peak Water");
- Additionally, the demand for fresh water will exceed supply by 40% by 2030;
- The water industry is valued at over $1 trillion per year, and this sector has been under-invested for decades, presenting lucrative opportunities for returns.
Our Investment Strategy
A leader in investments specifically focused on “blue gold,” the Cycle H2O Fund’s $30M approach involves investing in equity and quasi-equity in companies that offer technological solutions (equipment and/or software) benefiting water (e.g., treatment, recovery, reuse, etc.). The water industry is experiencing strong growth due to market fundamentals (urbanization, industrialization, aging infrastructure, geopolitical conflicts), which is further accelerated by climate change (e.g., drought, flooding). Cycle H2O is a strategic investor that enables our portfolio companies to expand globally, achieving both attractive financial returns and relevant environmental benefits.
"There is no substitute for water no matter what the cost. The only sustainable option is innovation.
Targeted Sectors, Projects, and Technologies
With the goal of generating maximum impact, the Fund primarily targets the largest water users: the municipal, industrial, and agricultural sectors. Collectively, their global consumption of freshwater is estimated at more than 80% of available resources. We believe we can make a real difference by supporting impactful startups in these key sectors.
Industrial
Solutions for:
- Reducing process water usage
- Detecting and eliminating emerging contaminants
- Increasing water reuse
- Improving desalination
Agriculture
Solutions for:
- Enhancing precision farming
- Reducing agricultural pollution
- Optimizing irrigation and its benefits
- “Fertigation” technology
- Increasing water efficiency in aquaculture
Water Services
Solutions for:
- Improving water treatment
- Updating aging infrastructure
- Solving future stormwater-related issues
- Reducing non-revenue water
- Increasing efficiency with digital tools
Our Impact Strategy
The increasing volatility of both the quantity and quality of water presents a growing risk to the planet and humanity. With the CycleH2O Fund, we aim to address these challenges while creating environmental, social, and financial value. We firmly believe that financial returns and ESG (Environmental, Social, and Governance) goals are compatible.
The CycleH2O Fund is aligned with the United Nations Sustainable Development Goals (SDGs) and has set specific environmental, social, and governance (ESG) objectives:
Le Fonds CycleH2O souscrit aux objectifs de développement durable (ODD) des Nations Unies et s’est fixé des objectifs environnementaux, sociaux et de gouvernance (ESG) précis :
ENVIRONMENT
- Focus on innovation and solutions in the water sector
- Measurement of the portfolio of companies using environmental metrics
- Active contribution to the development of an ecosystem of companies committed to the blue economy
SOCIETY
- Gender parity, diversity, and inclusion objectives included in the governance plan
- Monitoring diversity in management positions within portfolio companies
- Engagement with Indigenous communities, through our partner H2O Innovation Inc., which understands the unique requirements of projects in remote regions
GOVERNANCE
- • A unique approach to intellectual property • Best practices in corporate management
Our Advisors
Pierre
Côté
Membrane Veteran & ex CTO of Zenon
Areas of expertise
Treatment / Technology
Vincent
Moreau
General Director at Fonds Climat du Grand Montréal
Areas of expertise
Impact
Céline Vaneeckhaute
Canada Research Chair in Resource Recovery and Bioproducts Engineering
Areas of expertise
Bioscience Engineering
Ari
Raivetz
Founder and CEO at Transcend Software
Areas of expertise
Digital
Partners
The Cycle H2O Fund collaborates with leading companies that promote innovation in the field of clean technologies and water technologies.
In particular, we work with Cycle Momentum, an accelerator and innovation driver dedicated to clean technologies; Acqua Action, an innovation platform in the water sector in Canada; waterNEXT, the largest water technology network in Canada; as well as numerous companies in the industrial sector.
