Variolytics Secures $10 Million Growth Financing Round to Decarbonize Wastewater Sector
Hamburg, Germany – Variolytics, a leading wastewater technology company, today announced the successful closing of a significant growth financing round worth millions with Nordic Alpha Partners (NAP), a prominent European venture capital firm. The funding round was also joined by European Innovation Council (EIC), High-Tech Gründerfonds (HTGF), and Fraunhofer Technology Transfer Fons (FTTF).
The new investment marks a major milestone in Variolytics' mission to decarbonize the wastewater sector, an industry responsible for significant greenhouse gas emissions. Research data indicates that wastewater treatment plants emit a substantial 2% of global CO2 emissions, largely attributed to nitrous oxide (N2O), a highly potent greenhouse gas.
Variolytics developed market-leading sensor technology capable of detecting, analyzing, and reducing N2O levels in wastewater effluents using advanced sensing technologies and AI. The company's EmiCo solution provides real-time measurements of N2O levels, enabling treatment plant operators to optimize processes and prevent emissions entering the atmosphere.
"We're delighted with the new investment from NAP and our existing partners," said Johann Barlach, Chief Financial Officer at Variolytics. "Their operational expertise in the water technology sector will be instrumental in driving our growth plans."
The funding is expected to fuel the commercial expansion of Variolytics' innovative wastewater treatment solution within 12 months, reducing emissions by up to 50% and energy consumption by up to 20%.
Nordic Alpha Partners (NAP), a second-generation fund with ESG focus, sees alignment between its "BCSA" approach – Better, Cheaper, Simpler to integrate, and Available at scale – and Variolytics' technology. Shari Rana, Investment Director at NAP, stated that the company's EmiCo solution stands out as pioneering innovation in Europe, accelerating efforts towards net-zero emissions.
"The transaction reflects a strong signal of Variolytics' market potential," commented Anne Umbach, Investment Manager at HTGF. The existing relationship with HTGF is notable following their involvement in previous European startups.
The Variolytics technology holds immense promise, aligning with the Nordic Alpha Partners strategy to foster sustainable solutions while fostering business expansion and innovation through the investment process.
This groundbreaking achievement paves the way for a cleaner water future with Variolytics playing a vital role.