Episodes

  • Debra Coy - Earnings Calls, Inflection Points, and Perspective

    Debra Coy - Earnings Calls, Inflection Points, and Perspective
    Dec 4 2024
    Over the last decade, I've been so lucky to learn from seriously good water people, and Debra Coy is one of the best. Over four decades, she has built an extraordinary body of work from public markets analyst to XPV, the preeminent water investing firm that has been extraordinarily supportive to us, to her current independent role advising and sitting on the boards of major water companies. She sits on the investment committee of our Opportunity Fund and it has been such a pleasure to benefit from her insight and wisdom as we have made our first two investments at the Series B. This is a really fun conversation. Everything from the lessons for founders, from earnings transcripts to lending her perspective on the overall history of private markets investing in water. Please enjoy my conversation with Debra Coy. *Please note in the episode Debra mentions XPV raised a $250m FundI I. The correct amount was a $150m Fund I. Subscribe to The Fundamental Molecule here: https://www.burntislandventures.com/the-fundamental-molecule For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://podcasts.apple.com/us/podcast/the-fundamental-molecule/id1714287205 ----------- Legendary water industry leader, Debra Coy, reflects on the water sector's transformation from obscure investment to a recognized industry. She highlights the impact of increased investor knowledge, rapid digital tech adoption, and a new generation of business-savvy entrepreneurs. Drawing from her experience at XPV Water Partners, Debra emphasizes their focus on strong entrepreneurs and hands-on company building, and champions talent recycling within the sector. She also offers advice to aspiring water entrepreneurs: study public market data, balance ambitious vision with practical execution, and prioritize diverse leadership for enhanced performance. 00:00 Learning from Water Industry Leaders 02:30 - Water's Transformation into an Investable Sector 03:15 - Challenges Across the Capital Stack in Water Investing 04:45 - 14-Year Tech Adoption Cycle in Water 06:45 - The Critical Role of Entrepreneurs in Water Innovation 09:00 - XPV's Focus on Scaling Water Companies 13:20 - Building Synergies with Operational Focus 17:40 - Importance of Talent Recycling in Water Startups 20:00 - Axius’ Growth Strategy with KKR Partnership 22:30 - Managing Water Challenges in the Permian Basin 27:30 - Public Markets as a Guide for Water Entrepreneurs 30:20 - The Value of Reading Earnings Call Transcripts 33:00 - Public Market Sentiment Around Water Investments 35:25 - Key Traits of Successful Water Leaders 37:30 - Advancing Gender and Diversity in Water 40:25 - Balancing Vision and Execution as an Entrepreneur Links: Burnt Island Ventures: https://www.burntislandventures.com/ Debra Coy: https://www.linkedin.com/in/debra-g-coy-792992/ SM Material Key Takeaways: "Water's finally becoming a real industry." "The quality of the entrepreneur is critical." "Digital tech adoption in water has a faster rate. It's shifted the market's openness to innovation." "The investment world has woken up to water as an investable sector.” "Public markets give you a constant report card. It's a real-time view of investor sentiment." "A diverse leadership team is a better leadership team.” "Think big but do small. Balance vision with execution to succeed." "Investors are emotional. They want to invest in what they believe in." "You can't wait for it to get better. You have to do what it takes to make it better."
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    42 mins
  • Guillaume Clairet - Operations, Rule-Breaking and Erin Brockovich

    Guillaume Clairet - Operations, Rule-Breaking and Erin Brockovich
    Nov 20 2024
    We all know about the CEO in a company. When the company is small, the CEO does everything, and when it's big, the CEO sets the vision, hires the right people and makes sure they have what they need to be successful. But what about a layer deeper than that? Guillaume Clairet is a fascinating example of a world class COO. Now he's too modest to be known as the power behind the throne, but he's the guy that makes sure what needs to be done gets done. And it's an interesting time for him after both the $395 million delisting of H2O Innovation by Ember Infrastructure and their acquisition of NextEra’s Distributed Water business. Along the way, H2O Innovation have done things their own way and have built an exceptional business and this is a fascinating insight into the practicality of that journey. Please enjoy my conversation with Guillaume Clairet. Subscribe to The Fundamental Molecule here: https://www.burntislandventures.com/the-fundamental-molecule For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://podcasts.apple.com/us/podcast/the-fundamental-molecule/id1714287205 ----------- H2O Innovation COO Guillaume Clairet shares his insightful journey through the world and business of water. He discusses navigating the complexities of public markets, mastering M&A strategies, and building robust recurring revenue models. Guillaume also details H2O's transformative acquisition of the NextEra’s Distributed Water business, a strategic move towards owning water assets and offering diverse customer solutions, and finishes up by offering his invaluable advice to aspiring water entrepreneurs. 00:00 - Water Technology & Entrepreneurship 01:50 - Erin Brockovich Inspiration 03:45 - H2O Innovation Origin Story 06:12 - Early Roles & Company Growth 07:30 - Value of Full-Cycle Experience 09:23 - Navigating Public Markets 11:42 - Transition to Recurring Revenue 15:16 - M&A Process & Integration 19:03 - Successful M&A Integration Strategies 21:01 - COO Role: Serving & Problem-Solving 21:53 - When to Hire a COO 23:04 - CEO Sequencing Operations 26:18 - Going Private with Ember Infrastructure 29:25 - NextEra Acquisition & Future Strategy 30:30 - Holistic Water Solutions Provider 36:14 - Advice for Water Entrepreneurs Links: Burnt Island Ventures: https://www.burntislandventures.com/ Guillaume Clairet: https://www.linkedin.com/in/guillaumeclairet/?originalSubdomain=ca H2O Innovation: https://www.h2oinnovation.com/ SM Material Key Takeaways: "The CEO sets the vision. The COO makes it happen. It's a partnership of vision and execution." "When you're a startup, you wear many hats. You learn every aspect of the business from sales to operations." "Public markets teach resilience. They keep you on your toes, driving for performance and accountability." "In acquisitions, integration is everything. It's not just about buying a company, but making it part of your own." "A CEO should look at their strengths and hire to fill their weaknesses, making themselves obsolete in those areas." "Being a COO means being accessible. It’s about serving your team and solving problems." "In the water industry, patience is crucial. Progress is slow, but it's accelerating. Be ready for the long game." "Focus on customer relationships. When you earn a customer, keep them by meeting all their water needs."
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    38 mins
  • Sarah Brody - From Oceans to McKinsey

    Sarah Brody - From Oceans to McKinsey
    Oct 28 2024
    It's always worth paying attention to top-level consultants as crucial advisors to their usually enormous clients. They have their finger on the pulse of the practical needs of the market and are responsive when they see critical mass in an area. Sarah Brody runs the North American water practice of McKinsey, which she has restarted in response to considerable client demand from mega-cap corporates to private equity firms. The mainstreaming of water advice for major clients is a very interesting leading indicator of the increasing attention being paid to the fundamental molecule. Sarah is a proper intrapreneur and has done exceptional work building the business on behalf of her clients. She really elucidates the role that firms like McKinsey play in this sector, and she has an excellent water origin story. Please enjoy my conversation with Sarah Brody. Subscribe to The Fundamental Molecule here: https://www.burntislandventures.com/the-fundamental-molecule For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://podcasts.apple.com/us/podcast/the-fundamental-molecule/id1714287205
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    36 mins
  • Michael Rigney - The Millenium Falcon of Heat Pump Water Heaters

    Michael Rigney - The Millenium Falcon of Heat Pump Water Heaters
    Oct 9 2024
    The idea of an Overton Window when the conditions around a political issue change that in turn changes the nature of what is politically possible, is a useful one in assessing businesses. Sometimes conditions change enough in a market or sector that there is suddenly a significant window of opportunity for a founder to run through. We think that is the case with Michael Rigney, CEO of Cala Systems. They're building a next generation heat pump water heater, and if they're right, they could save billions of gallons of water, reduce US national emissions by 3%, and save domestic energy consumers about $23 billion a year. We talk about the nature of the water heater market, competing against entrenched incumbents, and rebuilding a well known consumer product from the ground up. He has major game in this segment and Cala are in a fascinating position. Please enjoy my conversation with Michael Rigney. Subscribe to The Fundamental Molecule here: https://www.burntislandventures.com/the-fundamental-molecule For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://podcasts.apple.com/us/podcast/the-fundamental-molecule/id1714287205 ----------- Cala Systems CEO, Michael Rigney, shares insights on the future of water heating with his company’s next-generation heat pump technology. He explains how predictive control and intelligent design are set to revolutionize the industry by optimizing energy efficiency, cost savings, and user comfort. Rigney also discusses the importance of strategic partnerships, the role of branding, and the urgent need for decarbonizing residential water heating to reduce global emissions. 00:00 Introduction 00:50 Overton Window and Market Opportunities in Water Heating 01:47 Why Target the Water Heater Market 03:21 Recognizing a Unique Market Opportunity 05:40 Early Steps in Building Cala Systems 07:15 Building the World’s First Intelligent Heat Pump Water Heater 11:02 User Experience and Intelligent Water Heating 12:42 Customization and Integration with Home Systems 13:29 Branding Water Heaters: Lessons from Nest and Opower 15:37 Designing Cala Systems’ Website as a Brand Statement 17:29 The Impact of Decarbonizing Water Heating 20:17 Building a Strong Team 22:17 The Importance of Hiring Slowly and Thoughtfully 24:02 Practical Innovation: Balancing Thought and Scrappiness 25:48 Building the Company You Need for the Future 28:01 Balancing Customer and Installer Needs in Product Development 30:32 Geographic Focus for Early Deployment 35:24 Transitioning to Founder and CEO Role 36:44 Advice for Future Water Entrepreneurs Links: Burnt Island Ventures: https://www.burntislandventures.com/ Michael Rigney: https://www.linkedin.com/in/michaeljrigney/ Cala Systems: https://www.calasystems.com/
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    39 mins
  • Ifetayo Venner - Gatekeepers, Big Infrastructure, and Leadership

    Ifetayo Venner - Gatekeepers, Big Infrastructure, and Leadership
    Sep 25 2024
    It's nice to have friends in high places, and in water, there are few places higher than the presidency of the Water Environment Federation, the core trade body for the wastewater industry. Ifetayo Venner and I got to know each other in 2017 when we both spoke at the opening session of WEFTEC, WEF’s annual gathering for the wastewater world, and we spoke in a cavernous room filled with about 5000 pros talking through our stories of how we got into water. Ifetayo’s was a lot better than mine, and no surprise. She is an enormously accomplished professional, Past President of WEF and a Senior VP at Arcadis, the massive engineering consultancy. She has led the creation of some very serious projects in wastewater, and I wanted to have her on The Fundamental Molecule to help us understand the role of engineering consultancies in the sector, what the world looks like from her point of view, the opportunities in infrastructure renewal, and of course, her own path through all of it. She really is great. Please enjoy my conversation with Ifetayo Venner. Subscribe to The Fundamental Molecule here: https://www.burntislandventures.com/the-fundamental-molecule For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://podcasts.apple.com/us/podcast/the-fundamental-molecule/id1714287205
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    46 mins
  • Mae Stevens - Building the Case for Water on Capitol Hill

    Mae Stevens - Building the Case for Water on Capitol Hill
    Sep 18 2024
    If I was to write a list of all the tricks we’re missing in water, it would be a lot, and somewhere near the very top would be lobbying - engagement with government on the federal and state level. I recognize we've made a lot of progress in the last five or six years in terms of securing capital for the required infrastructure renewal in the US, but there is a hell of a long way to go. But I look over the fence at energy, both legacy and renewables, healthcare, insurance, biotech, down to the gun lobby, and I can't help but think there is a massive gap between how effective we are in water and how effective we could be and how much more support for the fundamental molecule we would get if we were. Mae Stevens is a specialist lobbyist for water at Banner Public Affairs, and she recently joined us for our Founder Forum in DC alongside fellow lobbyist and longtime friend of BIV, Dan Kidera. She and he, they were both so good, and I wanted to have her on The Fundamental Molecule to help demystify this murky area of water at scale. Please enjoy my conversation with Mae Stevens. Subscribe to The Fundamental Molecule here: https://www.burntislandventures.com/the-fundamental-molecule For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://podcasts.apple.com/us/podcast/the-fundamental-molecule/id1714287205
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    37 mins
  • Jorge Richardson - Water Access, Reliability, and Selfies with Bono

    Jorge Richardson - Water Access, Reliability, and Selfies with Bono
    Aug 28 2024
    Jorge Richardson - Water Access, Reliability, and Selfies with Bono Sometimes businesses pop up that take a bit of time to make sense. HOPE Hydration is one of those businesses. When I first met Jorge Richardson in 2021, he was chock full of confidence, like a lot of entrepreneurs in 2021, with an admirably aggressive plan, but I couldn't quite see it. And, fortunately, I was wrong. Make no mistake, this is an exceptional early company with the potential to transform a very large legacy part of the water sector. Jorge is also exactly the right person to build it. A rare combination of smarts, charisma, and a down to earth way of looking at the journey that can only come from a very specific blend of experiences, both positive and negative. We think they can be a huge part of the solution to the public water access problem, and this is a fascinating look into the early stages of building that solution. Hopefully, you'll get it faster than I did because we are seriously excited. They were our second investment in BIV Fund 2. Please enjoy my conversation with Jorge Richardson. Subscribe to The Fundamental Molecule here: https://www.burntislandventures.com/the-fundamental-molecule For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://podcasts.apple.com/us/podcast/the-fundamental-molecule/id1714287205 ----------- Jorge Richardson’s journey led him to create Hope Hydration, tackling the broken water access system with fresh ideas. In 2021, he pivoted to focus on event-based water stations, quickly learning how to make a big impact with limited resources. By combining a smart, ad-driven business model with B Corp principles, Hope Hydration is redefining what it means to offer free, high-quality water everywhere. For Jorge, success is all about having the right people, a clear mission, and staying true to your values. 00:00 Start 00:49 Introduction 01:53 Jorge's Unconventional Path to Water Sector 02:18 Mission and Vision of Hope Hydration 04:50 Problems with Traditional Water Access Models 08:00 Transforming Drinking Water Infrastructure 11:10 Key Learnings and Pivot from 2021 Onwards 16:46 Understanding the Ad Business Model in Water Tech 20:45 Balancing Ads with Mission as a B Corp 25:27 The Power of Networking and Partnerships 29:43 Scaling Across Multiple Vertical Markets 35:38 Building Sustainable Competitive Advantage 41:53 Global Impact and Scaling Hope Hydration 45:23 Advice for Future Water Entrepreneurs Links: Burnt Island Ventures: https://www.burntislandventures.com/ Jorge Richardson: https://www.linkedin.com/in/jorgerichardson/ HOPE Hydration: https://www.hopehydration.com/
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    48 mins
  • Matt Rosenthal - Business Beneath Our Feet

    Matt Rosenthal - Business Beneath Our Feet
    Aug 14 2024
    There's an old saying from east London: “Where there's muck, there's brass.” Essentially, what this means is that the management of the dirtier side of life is invariably an opportunity for a decent business. Sewers are a big business. There are a million miles of them beneath our feet in the US, and about 300 million of them need to be inspected and cleaned every year. A serious undertaking. Matt Rosenthal, along with his Co-founder Billy Gilmartin, is building SewerAI in order to massively improve the process, efficiency, and accuracy of completing these inspections, and much more besides. As you will hear, he thinks as clearly about the fundamental job of an entrepreneur and leader as anyone we work with, and his pathway to building SewerAI was as entrepreneurial, honest, and compelling as any you will hear. Fitbit's loss was US sewer infrastructure’s gain. Please enjoy my conversation with Matt Rosenthal. Subscribe to The Fundamental Molecule here: https://www.burntislandventures.com/the-fundamental-molecule For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://podcasts.apple.com/us/podcast/the-fundamental-molecule/id1714287205 ----------- Matt Rosenthal, Co-founder and CEO of SewerAI, shares his journey from a chance entry into water tech to leading a company that is revolutionizing sewer inspection with AI. The discussion covers the challenges of scaling a tech-driven business in the water sector, the critical role of providing real value to customers, and the complexities of working with municipalities. This episode offers valuable insights into how innovation and AI are transforming essential infrastructure. 0:00:00 Start 0:00:49 Introduction 0:01:56 Matt and Billy’s entry into the sewer inspection industry. 0:04:00 Inefficiencies in traditional sewer inspections. 0:07:53 Market analysis and early mistakes. 0:11:02 Technical challenges in sewer inspection. 0:13:35 Combining skills to build the company. 0:18:19 Effective division of responsibilities. 0:20:50 Competitive edge through strong execution. 0:26:57 Leadership changes and hiring importance. 0:31:13 Series B fundraising strategy. 0:39:56 Thoughts on AI’s role and value. 0:43:54 Vision for expanding Sewer AI’s solutions. 0:46:31 Matt’s single most important piece of advice for future and aspiring water entrepreneurs. Links: Burnt Island Ventures: https://www.burntislandventures.com/ Matt Rosenthal: https://www.linkedin.com/in/matthewrosenthal99/ Key Takeaways: "The easiest way to raise a round is to build a kick-ass business. End of story." "Provide value to your customers. Everything else just follows from that." "If you can answer ‘yes’ to generating revenue and doubling it yearly, you're pretty good." "AI is just a part of the value we provide. It's the whole stack that matters." "We make people better at their jobs. That's what we do as a company." "Extreme honesty and openness build trust and show success." "Don't worry about building the business. Focus on providing value." "My job is to make my employees as productive as possible so they can make our customers productive." "The bar for excellence has never been so low. Do what you said you were going to do before it became inconvenient."
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    48 mins