Good news for water technology businesses. Export Development Canada (EDC) has announced up to US$10 million in equity commitments to XPV Water Fund Limited Partnership, a Canadian venture capital fund of up to US$150 million focused on growth investments in the water sector, an area of significant growth potential for Canada (and Ontario).
“EDC’s investment in XPV’s Water Fund is intended to help build Canada’s next generation of companies in the water sector, whose services and products will be in high demand around the world as the need for freshwater continues to increase,” said Stephen Poloz, senior VP of financing, EDC.
“EDC’s lead commitment played a pivotal role in our fundraising success because it gave us the necessary credibility and momentum to attract other world class investors,” said David Henderson, managing director at XPV and frequent Water Canada contributor.
“XPV is located in an internationally recognized water cluster that is home to a substantial percentage of the world’s water innovation companies, the vast majority of which have a track record of entrepreneurial success in the sector,” added Poloz. “Canada is a dynamic environment for water SMEs to flourish and build strong platforms to expand globally, and this export-oriented growth is what’s most appealing to EDC.”
The Fund will invest in water technology companies seeking to take advantage of global water trends affecting municipal, industrial, agricultural, and commercial water users. XPV will focus on high growth companies and platform investments within their current areas of focus to include demand reduction, wastewater to product, wastewater reuse, infrastructure renewal, and desalination.
“EDC will also enhance our investment in XPV’s Water Fund by making available to the fund companies our global trade expertise, facilitating meetings through our international relationships with major buyers, and our suite of financing and insurance products,” said Poloz.