Aging infrastructure, escalating water challenges, and accelerating demand from hyperscalers in AI, cloud computing and semiconductor manufacturing has increased the need for water technology solutions

Burnt Island Ventures, the world’s leading venture capital firm dedicated exclusively to funding early-stage water innovation, today announced the closing of its second fund with $50 million committed to invest in critical technologies in the $1.6 trillion water market that underpins roughly 60% of global GDP, according to a World Wide Fund for Nature report.¹

Founded by water industry veteran Tom Ferguson, Burnt Island Ventures launched in 2020 to fill the chronic funding gap in water innovation despite the sector’s massive market size and growing demand for new technologies. The firm’s debut $30 million Fund I is fully deployed across 18 companies, with two exits to date, strong portfolio growth, and top-decile performance. Burnt Island Ventures has backed companies like Daupler, Flocean, Subeca, Floodbase, and SewerAI that are solving some of the most valuable challenges in everything from smart metering to deepwater desalination.

“The global water sector is a trillion-dollar industry hiding in plain sight,” said Tom Ferguson, Founder and Managing Partner. “Fund II allows us to double down on our mission of finding, funding, and scaling the most ambitious founders who are solving water’s most pressing challenges, as well as giving them the sector-specific expertise and network they can’t get anywhere else.”

Burnt Island Ventures distinguishes itself as the world’s most active water-focused VC, pairing deep sector expertise with venture discipline. In addition to Founder Tom Ferguson, Burnt Island partners Christine E. Boyle, who founded YC-backed Valor Water Analytics and successfully sold it to Xylem, and Steve Kloos, a former senior leader at GE Water with extensive VC and startup experience, round out the team’s deep experience in water technology.

Xylem, a global water technology leader, is anchor investor in Burnt Island Ventures’ Fund II, as it was for the firm’s debut Fund I.

“Innovation is essential to solving the world’s most critical water challenges. Burnt Island Ventures brings the focus and funding to back breakthrough water start-ups, while our program Xylem Innovation Labs helps those start-ups scale by connecting them with the reach, resources, and knowledge of the world’s largest pure-play water technology company. When all stakeholders in the water ecosystem work together—investors, corporates, and entrepreneurs— we can accelerate innovation, bring early-stage technologies to scale and transform the water sector to build a more water-secure world,” said Sivan Zamir, VP of Enterprise Innovation & Venture at Xylem.

“WovenEarth invested in Burnt Island Ventures Funds I and II because we believe they are an excellent fund manager capable of generating top quartile returns with a commitment to continually strengthening their fiduciary capacity,” said Jane Woodward, Managing Partner of WovenEarth Ventures, a climate fund-of-funds that has backed Burnt Island’s Fund II. “Their team is one we never hesitate to endorse, and the fact that they are thematic experts on a highly underestimated theme is a bonus!”

Fund II, which is already being deployed, will target companies at the seed stage across the water value chain. The fund will focus on advanced treatment and filtration technologies, water data, AI, and digital productivity tools, infrastructure resilience and efficiency solutions, climate adaptation and water reuse innovations.

About Burnt Island Ventures

Burnt Island Ventures is the world’s leading venture capital firm focused exclusively on the $1.6T water technology market, leveraging specialized expertise and comprehensive global deal flow to identify, fund, and scale breakthrough water innovations. The firm's dedicated water investment platform connects capital with the world's best water entrepreneurs, accelerating technologies that ensure safe, affordable, and sustainable water for communities and industries facing unprecedented water challenges. For more information, visit burntislandventures.com.

About Xylem

Xylem (XYL) is a Fortune 500 leading global water solutions company that empowers customers and communities to build a more water-secure world. Our 23,000 diverse employees delivered revenue of $8.6 billion in 2024, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and let’s solve water.

About WovenEarth Ventures

WovenEarth's mission is to seek attractive, risk-adjusted returns while moving compelled capital into US early-stage climate tech venture, providing highly diversified exposure to the sector via a focused, carefully crafted fund of funds with differentiated access.

¹ https://wwfint.awsassets.panda.org/downloads/wwf-high-cost-of-cheap-water--final-lr-for-web-.pdf

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