Burnt Island Ventures is a New York–based venture capital firm founded in 2020 by Tom Ferguson, specializing exclusively in water technology. The firm was created to bridge the massive funding gap in the global water sector—an essential yet historically underinvested $1.6 trillion market. With a mission to accelerate innovation in water infrastructure, resilience, and sustainability, Burnt Island Ventures positions itself as the go-to early-stage investor for startups solving the world’s most pressing water challenges.
The firm invests in seed-stage water technology startups tackling critical global issues including water treatment, filtration, monitoring, and reuse.
Its portfolio spans technologies addressing aging infrastructure, water efficiency, and the growing demand for clean water driven by data centers, cloud computing, and semiconductor manufacturing.
Burnt Island Ventures seeks founders developing scalable solutions that intersect climate resilience, industrial sustainability, and next-generation water management.
In October 2025, Burnt Island Ventures announced the close of its second fund, a $50 million vehicle dedicated to early-stage water technology startups. Fund II expands upon the firm’s debut $30 million Fund I, which backed 18 companies across the U.S. and Europe.
The new fund will invest in companies building AI-based water monitoring systems, advanced filtration technologies, infrastructure resilience tools, and climate adaptation solutions. Alongside Fund II, Burnt Island is also raising a $75 million Growth Fund to support later-stage companies within its ecosystem, with early investments in Daupler and Irrigreen.
The firm’s close partnership with Xylem, the global water technology leader and anchor investor in both funds, provides portfolio companies with access to distribution channels, infrastructure, and technical expertise, accelerating commercialization and scalability.
Leadership
Burnt Island Ventures is led by Tom Ferguson, Founder and Managing Partner, alongside Christine E. Boyle, PhD, founder and former CEO of Valor Water Analytics (acquired by Xylem), and Steve Kloos, PhD, a former senior executive at GE Water and experienced water-sector investor. Together, the leadership team brings deep operational and technical experience, combining venture capital insight with decades of domain expertise in global water management and infrastructure systems.
Investment Strategy
The firm applies a focused, sector-specific strategy, investing exclusively in water innovation. It targets companies with high-impact potential across treatment, monitoring, reuse, and climate resilience. Burnt Island combines traditional venture discipline with specialized technical knowledge, enabling it to identify and de-risk opportunities in a market where understanding regulatory, industrial, and environmental complexity is key.
By leveraging its close collaboration with Xylem and its network of water-sector operators, Burnt Island provides portfolio founders with not only capital but also immediate market access, validation, and scaling support.
Notable Investments
Through its first fund, Burnt Island Ventures invested in Flocean, Subeca, Floodbase, and SewerAI, representing innovations across smart metering, flood prediction, and desalination.
Its Growth Fund has already invested in Daupler, a water incident management platform, and Irrigreen, a precision irrigation company focused on reducing water waste.
These investments reflect the firm’s commitment to sustainability, infrastructure modernization, and efficiency through applied technology.
Notable Exits
As a relatively young firm, Burnt Island Ventures has not yet announced any portfolio exits. However, several companies from its first fund are progressing toward commercialization and large-scale deployment within municipal and industrial markets.
Other
Burnt Island Ventures is distinguished by its singular focus on the water sector, one of the most essential yet underserved markets globally. The firm’s model integrates venture financing with technical expertise, creating a bridge between startups and large-scale industrial adoption.
Its partnership with Xylem further enhances credibility and reach, positioning Burnt Island as a strategic catalyst for water innovation.
