Burnt Island Ventures: $50 Million Fund Closed To Advance The Global Water Technology Sector

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Burnt Island Ventures: $50 Million Fund Closed To Advance The Global Water Technology Sector

Burnt Island Ventures, a leading VC firm exclusively dedicated to early-stage water innovation, announced the close of its second fund with $50 million in committed capital. The new fund will support the development of breakthrough technologies addressing the massive global water market.

Founded in 2020 by water industry veteran Tom Ferguson, Burnt Island Ventures was created to close the funding gap in water technology innovation despite the sector’s vast scale and growing urgency. The firm’s first fund, a $30 million vehicle, is fully deployed across 18 companies, delivering two exits and strong top-decile portfolio performance. Among its investments are Daupler, Flocean, Subeca, Floodbase, and SewerAI—companies tackling major challenges across smart metering, desalination, and infrastructure modernization.

Fund II builds on that momentum, positioning Burnt Island Ventures to deepen its mission of identifying, funding, and scaling founders developing solutions to pressing water challenges. The new fund is already being deployed and will target seed-stage companies across the full water value chain, including advanced treatment and filtration, AI and water data analytics, infrastructure resilience, climate adaptation, and water reuse technologies.

Burnt Island Ventures distinguishes itself as the most active water-focused venture firm globally, combining deep sector knowledge with traditional venture discipline. The leadership team includes Tom Ferguson, Managing Partner; Christine E. Boyle, the founder of YC-backed Valor Water Analytics (acquired by Xylem); and Steve Kloos, a former senior leader at GE Water and experienced investor.

Xylem, a global water technology leader, serves as anchor investor in Burnt Island Ventures’ second fund, continuing its partnership from Fund I. Xylem’s involvement reflects the company’s commitment to supporting early-stage innovations that can strengthen water resilience and sustainability.

Burnt Island Ventures also received investment from WovenEarth Ventures, a climate-focused fund-of-funds. Investors view the firm as a category leader with strong performance potential and a distinctive thematic focus in a sector poised for rapid growth, driven by aging infrastructure, escalating climate pressures, and increased water demand from industries such as AI, semiconductor manufacturing, and cloud computing.

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https://pulse2.com/burnt-island-ventures-50-million-fund-closed-to-advance-the-global-water-technology-sector

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