Too Basic to Notice, Too Big to Ignore: Tom Ferguson on the VC Opportunity in Water Tech
About this episode
Tom Ferguson discusses the overlooked investment opportunities in water technology and infrastructure.
This week on The Derivative, Jeff Malec sits down with Burnt Island Ventures founder Tom Ferguson to explore why water might be the most underappreciated investment theme on the planet. Tom walks through the $1.6 trillion annual capex flowing into water, why our pipes and treatment systems are effectively “Victorian tech” in a digital world, and how that creates a massive opening for early-stage innovation. He explains what “freshwater stewardship” really means, why utilities aren’t as slow or dumb as they’re often portrayed, and how consulting engineers act as quiet gatekeepers for change. Jeff and Tom dig into subsea desalination, digital water, leak detection, pricing politics, and the uncomfortable reality that we’re simultaneously over‑abstracting groundwater and underinvesting in infrastructure. They also compare AI hype to hard infrastructure needs, unpack how venture models need to adapt in water, and show how investors can target mid‑20s IRRs while actually improving the most basic layer of human and economic life. Chapters: 00:00-01:27=Intro 01:28-014:14=Water, Venture, and the Bay Area DNA: Tom Ferguson’s Origin Story 14:15–26:25 = Inside the $1.6 Trillion Water…
People in this episode
Host: Jeff Malec
Guest: Tom Ferguson
Topics covered
- water technology
- venture capital
- infrastructure investment
- groundwater management
- AI in water
- early-stage innovation
Keywords
- water investment
- infrastructure
- venture models
- groundwater
- desalination
- AI
- leak detection
- freshwater stewardship
Mentioned in this episode
Organizations: Burnt Island Ventures
Products: AI, digital water, subsea desalination, leak detection
Places: Bay Area
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