Seattle and San Francisco – September 29, 2026 -- ITpipes, a pipe inspection software provider used by more than 300 utilities, municipalities, and CCTV contractors across North America, has secured a strategic growth investment from Luminate Capital Partners to accelerate development of its AI-driven defect-detection technology.
Aging sewer networks face a $69 billion annual funding gap
The American Society of Civil Engineers gave U.S. wastewater infrastructure a D+ rating in its 2025 Report Card, pointing to more than 1.87 million miles of collection system pipe and a roughly $69 billion annual capital investment shortfall. Utilities are being asked to inspect more pipe and justify every dollar of spending with the same crews and budgets they had a decade ago, raising demand for condition data that regulators and finance officers can trust.
AiDetect hits 97% defect-detection accuracy, cuts coding time in half
ITpipes' AI tool, AiDetect, delivers 97% defect-detection accuracy while cutting coding and quality-assurance time by at least 50%, according to the company. Every AiDetect result is reviewed by NASSCO-certified experts, and the tool is built on more than fifteen years of field inspection data aligned with NASSCO PACP, MACP, and LACP coding standards. The new capital will fund development toward making ITpipes a single system of record combining inspections, defect coding, and asset history to drive capital planning decisions.
Investment funds product roadmap without disclosed deal terms
"For fifteen years, utilities and contractors have trusted ITpipes with the condition data behind their rehabilitation and capital decisions," said Ned Bebawy, CEO of ITpipes, adding that the Luminate partnership will let the company build faster for cities, counties, and contractors. Andrew Baldwin, Partner at Luminate Capital, said the firm is investing in tools that are "reliable, easy to use, and grounded in how the work actually gets done." Terms of the transaction were not disclosed.
Advisory teams span M&A and legal counsel on both sides
Lincoln International provided M&A advisory services to ITpipes shareholders, with Holland & Knight serving as legal counsel. Kirkland & Ellis acted as legal advisor to Luminate Capital, which manages more than $2 billion in assets and holds stakes in growth software firms including AbsenceSoft, Axonify, Conexiom, and Thought Industries.
ITpipes' platform is built on Esri ArcGIS and is headquartered in Seattle, Washington, serving utilities and contractors across the United States and Canada.