The world of water innovation is experiencing a remarkable evolution, powered by a perfect storm of entrepreneurial talent, technological advancement, and growing recognition of water's fundamental importance. In this fascinating conversation with Tom Ferguson, Managing Partner of Burnt Island Ventures, we explore how venture capital is catalyzing transformative solutions to our most pressing water challenges.
Ferguson shares his journey from running Imagine H2O's accelerator program to founding the first venture capital firm exclusively focused on water. His unique data-driven insight revealed a critical mass of exceptional entrepreneurs entering the water space by 2020, creating the perfect conditions for dedicated seed funding. "We finally had a critical mass of very high quality entrepreneurs within the water sector," Ferguson explains, "and that's really important for a seed fund."
What makes Burnt Island Ventures distinctive is their sector-specialist approach combined with a laser focus on finding extraordinary founders tackling significant problems. Their portfolio spans diverse areas - from utility software and wastewater treatment to atmospheric water generation and financial technology for small utilities. Ferguson emphasizes that the best investments often come from unexpected places, like a solution eliminating the wasteful practice of defrosting food with potable water in commercial kitchens.
The conversation takes a deep dive into water's most significant challenges, particularly the need to replace aging infrastructure in developed countries while building new systems in developing regions. Ferguson highlights how innovations like Aquamembranes' 3D-printed spacers can reduce infrastructure costs by 40%, enabling more efficient use of limited capital. Meanwhile, subsurface desalination technology could slash costs by 6-8 times while minimizing environmental impact.
Perhaps most compelling is Ferguson's candid assessment of water's political challenges. Despite water's essential nature, the sector struggles to secure adequate funding because it hasn't effectively engaged in political advocacy. "The oil and gas sector still benefits to the tune of hundreds of billions of dollars a year of subsidies because they pay for them," Ferguson notes, contrasting this with water's limited political influence.
Whether you're an entrepreneur, investor, or water professional, this episode offers invaluable insights into how innovative thinking and strategic capital are reshaping our relationship with Earth's most precious resource. The future of water depends not just on technology, but on our ability to tell compelling stories that mobilize support for the infrastructure transformation we urgently need.

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