At WIP, we share the early stories of innovators revolutionising the water industry. We believe it's crucial for more CEOs and founders to share their triumphs and obstacles, enabling teams to learn from each other. In this episode, we highlight the story of Florian Rohde, CEO of instrAction.
Since 2016, instrAction has evolved from a research company (established in 2008) in the pharmaceutical sector to become an innovator in water filtration technology, focusing on cleantech applications like removing heavy metals from drinking water and recycling precious metals.
In 2017, instrAction developed the first absorbers for eliminating various bacteria, and in 2020, the company established its headquarters in Heidelberg, Germany, as a research and quality lab. By 2022, the first PoU water filters with absorbers were completed. In 2023, PFAS and precious metals recovery from pharmaceutical wastewater achieved groundbreaking results.
The story of instrAction is captivating and illustrates the immense effort required, as well as the patience needed from investors aiming to disrupt and transform the water industry.
In this episode, we discuss with Florian what it's like to be a CEO in a water technology company at the forefront of innovation, addressing the significant challenge that PFAS contamination has become. This challenge grows larger each year as more monitoring and measuring continue, so even if all PFAS were removed from products today, the issue will persist for decades.
The cleanup alone is estimated to cost around £1.6 trillion across the UK and Europe, with nearly 23,000 confirmed PFAS-contaminated sites in Europe, along with 21,500 presumptive contamination sites linked to industrial activities. So the journey that instrAction has ventured into, is giving us a hint of how much impact water technology companies can bring to the world around us.
Let's give it away to Florian and instrAction.
#2 Can SPV's boost innovation in the water industry?
The water industry spans various innovation areas, from SaaS solutions for leak detection and real-time quality monitoring to new piping and water treatment infrastructure. But scaling these technologies remains a challenge for industry players and partners.
In 2024, Antoine Walter highlighted that water sector investments exceeded $1 billion, a record for the industry. However, this figure is small compared to the $468 billion raised globally by cleantech in 2023, underscoring the water sector’s growth potential.
Water Impact Partners was founded to accelerate capital flow into water techs, helping them to scale faster and guiding new investors entering the sector. In 2024, there has been notable interest from private equity firms, especially for companies transitioning into profitable businesses. The challenge, however, is the scarcity of growth stage, innovative companies that can attract private equity, which typically targets more mature firms.
One potential solution to attract more private equity capital is Special Purpose Vehicles (SPVs). These structures, with a vertical focus, could reduce risk while enabling substantial growth by bridging the gap between growth-stage VC and private equity. In sectors like digital water management or atmospheric water generation, while the market is populated with many players, few are large enough to attract private equity yet.
SPVs could be structured for both equity investment and project financing within a specific vertical. This approach would allow capital to be deployed over few years, investing in key players within the vertical. Over time, consolidation can occur through the equity investment SPV, driving scale and meeting private equity’s investment criteria.
If managed effectively, SPVs could offer a way for investors to dominate specific water sector verticals by establishing global leadership in high-potential areas. While this model has both advantages and challenges, its structure and management are critical for strong returns. As the water industry evolves, SPVs could play a key role in attracting more capital, potentially increasing the water sector's share of total cleantech investments from the current 0.2%-0.3%.
#3 Events & Conferences
Upcoming events & conferences:
We always love to meet in person, so if you are around at the upcoming events and conferences don't hesitate to reach out to discuss how we can support you:
AQUATECH in Amsterdam from the 11th to the 14th of March 2025. Global Water Summit in Paris from the 12th to the 14th of May 2025. World Family Office Forum in Montreux from the 16th to the 17th of June 2025. Global Water Expo in Riyadh, September 2025. WETEX in Dubai from the 30th of September to the 2nd of October 2025.
Want to learn more about Water Impact Partners and how we can support you as investor or water tech? Download out latest company presentation here: WIP Company Presentation.
