Edison Partners recently announced leading a $43 million growth investment in 120Water, a leading cloud-based water management and testing system based in Zionsville, Indiana, with continued participation from Allos Ventures. The new funding round will further expand the 120Water team, technology investments, and go-to-market efforts.
The new federal Lead and Copper Rule Improvements (LCRI) will require states’ drinking water to be 100% lead-free. All service lines (LSL) in the United States will be cataloged and undergo regular testing, surveillance, and remediation starting October 16, 2024. The EPA estimates that 9.2 million lead service lines (LSLs) serve water to properties in communities across the United States, affecting approximately all 50 states.
Complying with LCRI can be expensive and challenging for state executives, regulators, and local water utilities. And 120Water uniquely provides the only platform offering a complete, end-to-end digital water compliance solution with its data collection and aggregation solution, testing capabilities, kit provision, program management, and consulting services. The platform’s rapid adoption drives a sharp increase in new customers and revenue growth of over 60% annually. The immediate testing and compliance market for LCRI is estimated to be more than $2 billion.
120Water’s integrated software solution offers accessible, seamless test coordination, secure data handling, reporting, and workflow management for LCRI oversight together in one place. And beyond lead and copper (the focus of the LCRI), the software scales to empower regulators and utilities to manage all water quality compliance while improving public transparency more effectively. Along with investment in compliance management software, 120Water’s environmental laboratory network is uniquely positioned to help water systems and regulators meet the demands of emerging water quality regulations such as PFAS.
120Water marks the thirteenth investment from Edison X, following a recent $25 million investment in Take Command Health, the first and largest administrative platform for individual coverage health reimbursement arrangements. And it also joins other supply chain, logistics and compliance-focused technology investments in Edison’s active portfolio, including GAN Integrity, Overhaul, Recycle Track Systems (RTS), Solutions by Text, Spiffy, and MacroFab. Since its inception in 1986, Edison has invested in more than 260 companies.
KEY QUOTES:
“Over the past seven years, 120Water has built a highly scalable, cloud-based, end-to-end platform unlike any others, while also becoming recognized as a thought leader on LCRI compliance and remediation. Cofounder and CEO Megan Glover is a water quality expert with strong vision, matched with a highly effective team. We’re 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.”
— General Partner Ryan Ziegler, who joins the company’s board of directors
“With public access to water utility lead service line inventories next year, we expect heightened awareness and increased public demand for quicker remediation in water quality. In this next expansion phase for our company, we feel well prepared with the partnership and operating expertise that Edison offers, as we continue to grow and confidently support this impending demand.”
— Megan Glover, 120Water co-founder and CEO
