Investors back on-site PFAS destruction technology as cleanup pressures grow

Private capital is increasingly targeting PFAS contamination as utilities, industry and the U.S. Department of Defense face tightening drinking water regulations and mounting cleanup liabilities. Leonid Capital Partners, a Palo Alto-based investment firm and Department of Defense Trusted Capital Provider, announced a new investment in AxNano, Inc., a technology company developing compact systems designed to destroy PFAS directly at contaminated sites.

PFAS “forever chemicals” have been detected in drinking water systems, military installations and industrial facilities nationwide, prompting new federal and state standards that could drive remediation costs into the tens of billions of dollars. Traditional approaches often rely on centralized treatment plants or long-term containment strategies that can take years to implement.

AxNano’s modular systems are designed for on-site deployment, allowing PFAS to be destroyed at the point of generation rather than transported offsite for treatment or disposal. The approach reflects a broader shift toward decentralized infrastructure solutions aimed at faster deployment and reduced operational risk.

“PFAS isn't an emerging environmental issue anymore — it's an infrastructure liability with real balance sheet consequences,” said James Parker, co-founding partner of Leonid, in a press release. “AxNano delivers what legacy systems can't: immediate, on-site destruction that reduces risk instead of deferring it.”

With hundreds of PFAS-impacted Defense Department sites and looming compliance deadlines for municipalities, demand for faster treatment solutions is expected to grow. AxNano plans to expand manufacturing and deployments in 2026, targeting military, industrial and municipal customers as utilities seek more immediate pathways to protect drinking water supplies.