BIV Monthly Update LXII

Written By Tom Ferguson

BIV Monthly Update LXII – 12/17/2025

“I’m gonna make him an offer he can’t refuse” Vito Corleone The Godfather Part I

Highlights

  • End of the grace period for Fund II, welcoming in multiple additional LPs, and deepening our work on behalf of WovenEarth. Find LPs even half as amazing as Jane, Denise, Mauricia and the team and you’ll be in good shape indeed. 

  • What a treat to be onsite for Cala System’s board meeting and to see the new manufacturing facilities, which they moved into and certified in under four days. What they’ve done on sub-$10m is absolutely absurd. They now have 3+ years of cumulative operating data, 80 units sold in 2.5 months, ramping fast, and a rapidly expanding set of quotes from approving installers. It’s happening. A whole new level of respect for Michael, Mike & team. Kudos. 

  • Such a privilege to be the beneficiary of the insane production values of IDWS in Jeddah. It was so helpful to have 20 minutes to really build out our argument. Next time I’ll use the podium for the whole time.

  • Nice to be among a LOT of friends at the ICM Fall Convening. Extremely well run, very interesting sessions, and it’s nice to know BIV seems to be an accepted and approved-of feature of the impact investing landscape. 

  • Thanksgiving with Ruki’s family in town was lovely.

December Asks

BIV Portfolio Updates

Seed Fund I

Seed Fund II

Growth Fund I

Work with the Burnt Islanders

  • All open roles with the Burnt Islanders are advertised through the BIV Jobs Board which is accessible here

Company Pipeline

  • Overall Pipeline: 2100 (+190)

  • We continue to spend time in AI for plant optimization and emerging contaminants, while also expanding our focus into urban resilience planning and weather monitoring and modification. Too much water where it shouldn’t be and not enough where it is needed - aka the water supply-demand mismatch - is becoming the defining challenge of our time.

  • Across our late-stage pipeline, only 20% of opportunities are US-based. There is a lot to be excited about internationally, especially in emerging markets.

Market Insights

  • The Innovation Driven Water Sustainability (IDWS) Conference in Jeddah is scaling sharply, expecting 7,300 participants from 133 countries, up from under 1,000 in prior years. The Saudi Water Authority plans to unveil 28 strategic agreements, 17 innovation initiatives, and a SAR200M (~$53M) Deal Day. With global finalists competing for the Innovation Prize and major technology showcases on site, the event underscores Saudi Arabia’s push to make IDWS a leading hub for water-sector innovation.

  • Arizona is expanding its long-term water strategy as WIFA advances seven major importation concepts, including Baja California desalination and cross-border Colorado River exchanges, into due diligence. The state is simultaneously soliciting in-state projects such as brackish desalination and wastewater reuse. With $50–75M allocated for early development, WIFA will assess feasibility, legal pathways, and environmental impacts over the next 18–24 months. 

  • The EPA approved five new WIFIA loans totaling $711M to upgrade water and wastewater systems across four states, while opening $6.5B in additional funding and $550M through SIFIA. The agency signaled priority for projects using innovative technologies, water reuse, desalination, cybersecurity, and supporting economic growth, including AI data-center water needs.

  • Private equity’s footprint in water continues to expand, with active holdings surpassing 327 globally, more than double 2019 levels, per Bluefield Research. PE firms have executed 435 transactions since 2015, led by the U.S. with 73% of current positions, and completed 36 bolt-on deals this year alone. With 60% of assets under three years old, the sector is now primed for an exit wave through strategic sales, secondary buyouts, or select IPOs.

  • GigaClimate argues that climate-driven scarcity is turning water into a market for reliability, not just supply. Agriculture, cities, and industry are increasingly paying for certainty through groundwater trading, reuse systems, precision irrigation, and modular treatment. The fastest-growing opportunities are at the edge (data centers, chip fabs, developers, and large growers) where downtime is costly and distributed solutions bypass slow utility upgrades. 

Team

  • Huge thanks to Jane Zeltner and Veronica Agudelo for all their help this semester. Remarkably talented and diligent individuals. 

  • A big 2025 for us. Thanks to all the Burnt Islanders for their tireless efforts in building the Fund we all know has to exist in this sector we love. 

BIV Insight/Visibility

  • 80 Early-To-Growth Stage NY Investors Funding Climate Tech - BIV on Hacksummit

  • Appetite for water tech grows with seeding round success - BIV on Aquatech

  • Investing in Water – Tom on TIM TALKS Private Equity & Venture

  • Through the Grind - Fundraising Lessons from Fund II

  • Tom was interviewed by GWI, held an Al Miyah Challenge Evaluator Brief, attended the ICM Fall Convening, an Impact Investing Fall Community Happy Hour hosted by ICM, a Smart Water Management Discussion with KKR. 

  • Steve attended a Family Offices in LA event, NSF Site Visit sessions, visited RMI's Flex Space, a Boulder Climate Happy Hour, and led a Water Technology Innovation Lunch in MSP.

  • Christine attended Desalytics Water Week and a Smart Water Management Discussion with KKR.

  • Jessica attended the Red Sky Summit 2025 and the San Francisco - 2025 Registered Adviser & CCO Summit. 

  • Jennie attended a session Applying AI to real industries - optimizing the world, hosted by Pale Blue Dot and SOSV, a SOSV Climate Tech Session, and a session on Sourcing in the Age of AI hosted by unlock VC.

We’re Reading/Listening/Watching

Opportunities and a little bit of everything

Things to Work On

  • Growth Fund I fundraise! We’re still cooking…

  • We need to rewire the argument for 2026. Too much has happened, and we need to approach our pitch with fresh eyes. 

Thanks so much as ever.

Tom Ferguson
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Funding The Best Water Entrepreneurs in the World - BIV on the Water MBA Podcast