120Water secures US$43m growth investment led by Edison Partners

Growth equity investment firm Edison Partners led a $43m growth investment in 120Water, a cloud-based water management and testing system based in Indiana, US, with continued participation from Allos Ventures. The new funds will be used to further expand the 120Water team, technology investments, and go-to-market efforts.

New federal Lead and Copper Rule Improvements (LCRI) will require states’ drinking water to be 100% lead-free and all lead service lines (LSL) in the US to be catalogued and undergo regular testing, surveillance, and remediation starting 16 Oct 2024. The EPA estimates 9.2 million LSLs serve water to properties in communities across the US, affecting approximately all 50 states.

Complying with LCRI is said to be expensive for state executives, regulators and local water utilities. 120Water reportedly provides the only platform offering an end-to-end digital water compliance solution with its data collection and aggregation solution, testing capabilities, kit provision, programme management, and consulting services. The platform’s adoption is said to be driving a revenue growth of more than 60% annually, and a sharp increase in new customers. The immediate testing and compliance market for LCRI is estimated to be more than $2bn.

“Over the past seven years, 120Water has built a highly scalable, cloud-based, end-to-end platform unlike any others, while also becoming recognised as a thought leader on LCRI compliance and remediation,” said general partner Ryan Ziegler, who joined the company’s board of directors. “We are proud to partner with 120Water, which is helping utilities, at all levels of scale, tackle these daunting federal and state requirements, efficiently, affordably and with modern technology.”

120Water integrated software solution provides accessible, seamless test coordination, secure data handling, reporting, and workflow management for LCRI oversight, together in one place. Beyond lead and copper which is the focus of LCRI, the software scales to empower regulators and utilities to manage all water quality compliance while improving public transparency. In addition to investment in compliance management software, 120Water’s environmental laboratory network helps water systems and regulators meet the demands of emerging water quality regulations such as per- and polyfluoroalkyl substances (PFAS).

“With public access to water utility LSL inventories next year, we expect awareness and public demand for quicker remediation in water quality,” said Megan Glover, 120Water co-founder and CEO. “In this next expansion phase for our company, with the partnership and operating expertise that Edison offers, we continue to grow and support this impending demand.”

120Water marks the 13th investment from Edison X, following a recent $25m investment in Take Command Health, an administrative platform for individual coverage health reimbursement arrangements.    

(Image: Unsplash)