Venture Capitalist Sees Water as a Strategic Investment

Mar 26, 2012

By Erica Gies

The water sector has traditionally been shunned by investors because it has been heavily subsidized and regulated. They believed that no one made profits in water because investment returns were often capped.

But six years ago, venture capitalist David Henderson, managing director of XPV Capital in Toronto, realized there were real returns in water.

“There was this whole world where water is mission critical, and these water processes enable pretty well everything on the planet,” he said. “You start to see that there’s a very strong value proposition for water technologies that can bring efficiencies or improve security or quality in those processes.”

XPV may be the first venture capital firm in the world to focus exclusively on water. When I was in Toronto earlier this month, I met with Henderson and discussed with him why water is a market whose time has come.

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