Start-up wants to decarbonise the wastewater sector - with advanced sensor technology and AI
Variolytics Secures Growth Financing Round with Nordic Alpha Partners
Variolytics is delighted to announce the successful closure of its growth financing round, a significant milestone in the company’s mission to decarbonize the wastewater sector. The financing round, led by Nordic Alpha Partners (NAP), also includes investments from the European Innovation Council (EIC), High-Tech Gründerfonds (HTGF), and Fraunhofer Technology Transfer Fonds (FTTF).
Founded in 2020 as a spin-off from the Fraunhofer Institute, Variolytics has developed market-leading sensor technology capable of detecting, analyzing, and ultimately reducing greenhouse gas emissions in the wastewater sector. Research shows that wastewater treatment plants emit around 2% of the world’s CO2, comparable to the global aviation industry. In Europe, wastewater treatment accounts for up to 15% of an average municipality’s total emissions, primarily due to nitrous oxide (N2O), a greenhouse gas 300 times more potent than CO2.
Variolytics’ innovative solutions provide accurate, real-time measurements of N2O levels using advanced sensor technology and AI. These insights enable treatment plant professionals to adjust processes, preventing harmful emissions from entering the atmosphere. Historically, such measurements have been both costly and inaccurate, but Variolytics’ EmiCo solution offers operators a comprehensive overview of their emissions while ensuring regulatory compliance.
"We are delighted to see how FTTF’s investment approach at Variolytics—driving groundbreaking research outcomes and empowering deep-tech entrepreneurs from Fraunhofer—continues to gain traction. By supporting founders in advancing their businesses and securing further funding, we are proud to attract esteemed investors like NAP," Tobias Schwind, Partner at FTTF.
Since August 2024, NAP has collaborated with the Variolytics team to implement a new de-risking strategy, validating pricing, refining the go-to-market plan, and identifying key customers. This highly operational pre-investment approach has enabled NAP to test international commercial expansion and co-develop a new product strategy with Variolytics’ management.
"This technology is a great example of how advanced innovation in Europe can drive massive impact on emissions and accelerate the path to net zero in a simple and capital-efficient way. Variolytics immediately stood out as a clear technology pioneer in the watertech space," Shari Rana, Investment Director at Nordic Alpha Partners.
The Variolytics solution, EmiCo lite, aligns with every aspect of NAP’s “BCSA-approach,” enabling market adoption by being Better, Cheaper, Simpler to integrate, and Available at scale. Within 12 months of installation, Variolytics’ technology can reduce emissions by up to 50% and energy consumption by up to 20%.
"NAP has worked intensely with the company over the last six months to set up a commercial strategy testing international market potential. This close collaboration has validated Variolytics’ strong tech edge and solidified a shared vision with the management team," Jannik Brey Christensen, Value Creation Partner at NAP.
"Working with NAP so early on made us deeply confident that we had found the right partner to help scale Variolytics and grow our sensor technology and software platform to its full potential. NAP’s operational approach and expertise in the water technology sector, combined with their deep knowledge of fast-paced scaling, provide a solid foundation for growth in the years to come," Johann Barlach, Chief Financial Officer of Variolytics.
Nordic Alpha Partners is acquiring a significant stake in Variolytics alongside existing investors, including HTGF and FTTF, as well as new investor EIC. The investment is being made through NAP Fund II. The transaction is subject to customary regulatory approvals and is expected to be completed during Q1 2025.
"It’s a strong signal that Variolytics has convinced NAP to make this commitment with their new second fund generation. HTGF and NAP were previously co-invested in Wiferion, which was acquired by an American OEM in 2023," Anne Umbach, Investment Manager at HTGF.
"The European Innovation Council (EIC) Fund invests in promising technologies across a variety of verticals, including energy, green, digital and health. The EIC Fund aims to support the commercialisation of potentially ground-breaking technologies in the EU and help bring the innovations to the market. We are proud to partner with Nordic Alpha Partner, a specialised investor and member of European Commission’s Trusted Investors Network, to contribute to the continued journey of Variolytics, a leading player in the EU water technology space," Svetoslava Georgieva, Chair of the EIC Fund Board.
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