The Fundamental Molecule The Fundamental Molecule with Tom Ferguson, Burnt Island Ventures

Nicole Neeman Brady is a real standout in the world of water. An entrepreneur, an intrapreneur fund manager, mentor to countless emerging water professionals, she has packed a lot into her time in the sector. She's currently a managing director with Renewable Resources Group, where she oversaw the raising and deployment of the $927 million sustainable Water Impact Fund, the largest of its kind ever. She is also a public servant of considerable standing, having just left the board of the Los Angeles Department of Water and Power, which is the largest municipality in the US with an annual operating budget of $7.5 billion. And she previously served on the Colorado River Board of California. As you will hear, she's a deeply smart, generous, and reflective person with a fascinating career. Please enjoy my conversation with Nicole Neeman Brady. 
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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Nicole shares details from her transformative journey from early days at high-profile firms like McKinsey and Goldman Sachs to her pivotal role in pioneering distributed water treatment solutions. She discusses the challenges and strategies in water management amid climate change, the complexities of board governance, and the impact of strategic decisions on environmental sustainability. Throughout the episode, Nicole offers insights into water rights investing, the dynamics of the SPAC market, and the crucial role of storytelling in advocating for environmental issues.
Episode Highlights:
0:00 Start
0:49 Introduction
2:00 Nicole’s journey to the water sector
6:35 The Renewable Resources Group (RRG)
9:16 Fundraising around water
11:54 Investing in water rights
14:37 SPAC markets
19:11 Serving on the LADWP board
22:55 Running an effective board
27:09 The role of a board Chair
29:30 Nicole’s perspective on MBAs and YPO
32:49 The future of water as an investable area
35:16 Communicating the water story
Links:
Burnt Island Ventures:  https://www.burntislandventures.com/
Nicole Neeman Brady:  https://www.linkedin.com/in/neemanbrady/
Quotes:
“I saw the critical need for innovative solutions in water management.”
“It can be a tremendous and clear opportunity to find a way to monetize water, to make investments in the sector while addressing water security challenges and really promoting sustainable and environmental good practices.”
"My water journey…really began with a deep fascination and passion for sustainability and resource management."
"We wanted to focus on distributed water treatment, really under the thesis that much like the energy sector, water too would move from large scale projects to more distributed solutions."
"I think there's been a much more notable recognition of the climate change's impact on water sources and their lack of durability and resiliency."
“We have to embrace storytelling as a strategic priority.”
“If you feel like you're drowning in problems, there's always a solution waiting to be distilled.”

In 2015, we still used those table speakers for conference calls. Remember those? Kind of looked like a spaceship. I had just started at Imagine H2O, and the first external call I had on my second day was with someone who was very highly regarded by my colleague Ivy Nguyen, who is now a BIV IC member. Hi, Ivy! That someone was Steve Kloos, partner at True North Venture Partners, previously at GE Water and Osmonics. And Ivy was really right. 
Over the following eight years, Steve became a friend, mentor, colleague, and through an annual seminar for IH2O companies that he ran, probably the single biggest influence on how I and the team thought about the science of early stage company creation and entrepreneurship. I was so grateful for his support through the formation of BIV Fund I, and it was a wonderful moment when we saw the possibility of working together. Along with Christine joining, BIV has now entered a new phase, and one that sets us up excellently for the long term. We have a three-person partnership of complementary skills and backgrounds, and it's tremendously exciting to have Steve join us. He's an exceptionally smart, kind person with a hell of a resume and is one of the highest integrity individuals I've had the pleasure of working with. 
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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Steve Kloos’ career in the water field, his expertise in membrane technology, and his significant contributions at Osmonics, GE, and partner at True North Venture Partners is explored. He and Tom discuss the critical roles of mentorship, strategic thinking, and the dynamics of corporate integration and venture capital in fostering innovation. Key themes discussed are the power of water treatment technologies, the importance of understanding value chains, strategies for startup success and sustainability, and the need for continuous learning and adaptability in addressing climate change and advancing water technology.
Episode Highlights:
0:00 Start
0:49 Introduction
2:23 Steve’s journey with water
4:45 Membranes and their importance
5:49 GE’s acquisition of Osmonics
8:04 Steve’s progression within GE
9:59 GE’s vulnerabilities
12:28 Transitioning from focusing on business internally to externally
16:11 GE Ventures
18:05 True North and startup theory
22:35 Coaching startups
27:20 Risk retirement and registers
30:15 Lessons learned as AquaHydrex CEO
31:56 A unique tool in acquiring funding
34:16 Hydrogen and water’s intersection with climate and climate risk
39:27 Current
42:09 What excites him about BIV
46:10 Steve’s advice for prospective water entrepreneurs
Links:
Burnt Island Ventures: https://www.burntislandventures.com/
Current: https://currentwater.org/
“Onion Theory of Risk”: https://www.youtube.com/watch?v=xy9cAANwMe
Quotes:
"The true north of any company lies in understanding its customers and working backwards from there."
"Innovation is not just about having a groundbreaking idea; it’s about making it sustainable and scalable."
"Water is not just a resource; it’s a critical player in our collective response to climate change."
"Being a learner is more than a mindset; it’s the most crucial skill for any entrepreneur."

It's important to have people you look up to in the industry you choose. And by "look up to," I mean to be consistently, wildly impressed by what they're building, their intellect, their clarity of thought, their track record, and how they comport themselves. Reinhard Hübner is one of those people for me. As the CEO at SKion, he has built an undeniably impressive platform, yielding $700 million in global revenues and with no signs of slowing down. They know exactly how big their opportunity is. And he and his partner, Dirk Brusis, have built an interlinking set of companies, solutions, and technologies to really go after it. Please enjoy my conversation with the excellent Reinhard Hübner.
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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Dr. Hübner delves into the strategic layers of the water industry, tracing his ascent from wastewater treatment to leading SKion's global expansion. They explore operational dynamics, the significance of human capital, and the complexities of mergers and acquisitions amid economic flux, emphasizing strategic growth and valuation discipline. Hübner discusses startup challenges, underscores direct customer relationships, and the necessity of a unified, innovative culture within SKion's network. Today’s discourse reveals SKion's strategic direction and ethos, imparting insights on adaptability, collaboration, and leadership vital for navigating the water industry's ever-evolving global challenges.
Episode Highlights:
0:00 Start
0:49 Introduction
1:39 Dr. Hübner’s career to date
3:45 Lessons learned from manufacturing and logistics experience
5:06 His experience in leakage
6:52 Drinking water vs wastewater reflections
8:56 Being headhunted to work in the German water industry
9:45 Learnings from the first deal that didn't work
14:18 Structural shifts that are enabling the faster adoption of new products
17:04 SKion and its relationships with business
23:40 M&A and the current market
27:26 Is water countercyclical?
28:40 Structural comparison of the European and US markets
32:03 The evolution of Dr. Hübner’s job
35:27 His thoughts on earlier stage investing
37:47 FIDO and leak detection fun
39:19 His partnership with Dirk Brusis
42:18 The pros and cons of Dr. Hübner’s public speaking
44:47 His most important piece of advice for aspiring water entrepreneurs
Links:
Burnt Island Ventures:  https://www.burntislandventures.com/
SKion Water:  https://www.skionwater.com/en/
Quotes:
"There's no such thing as life before water."
"You can't eat services...Somebody has to produce something from something."
"It's a conservative sector, and on the municipal side, they don't take risks."
"We don't want to be the biggest. We want to be the best."
"Forced collaboration is like forced labor...it doesn’t work."
"You need to be patient, which is not always my strength."
"We have been very disciplined in not overpaying."
"Water is full of passionate people. Nice, passionate people."
"I mean, the reality is drinking water is, technologically and asset wise, much simpler than wastewater."
"Don't try to do it alone. Find partners also in the industry."

Anthea Sargeaunt is the CEO and Co-founder of 2S Water. Multivariate, real-time non-contact sensing is one of the holy grails of water management. Getting it right will allow all stakeholders to understand what is in their water in real time. And if we can get it really right, this knowledge will allow a host of improvements in water management, including reduced chemical and energy use, reduced pollution, reduced fines, improved health outcomes, improving the pace and cadence of experimentation with new technology. The list is very long indeed. Anthea and her team have taken a fascinating pathway from problem selection to massively leveraging their equity through grants. She is an exceptional founder and person and one of the best founder communicators I have met. I loved her insights into the importance of public speaking as you're building a company. Please do enjoy my conversation with the excellent Anthea Sargeaunt. 
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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Anthea's entrepreneurial journey, spanning from early ventures to the oil and gas sector, showcases her problem-solving prowess and industry acumen. Today, she and Tom explore partnership complexities and grant acquisition, stressing understanding partner expectations and grant funding's role in startup growth. Anthea's insights emphasize genuine connections, adaptable communication, and infrastructure investment for streamlined product development. This dialogue not only underscores innovation's transformative power but also offers guidance for aspiring water entrepreneurs, marking a pivotal moment in industry evolution.
Episode Highlights:
0:00 Start
0:49 Introduction
1:50 Anthea’s career to date
6:10 2S Water’s genesis
8:30 Its product and the problem it solves
10:43 Understanding the problem
14:39 Establishing early customer relationships with large companies
16:50 Pros and cons of this early engagement
18:19 Crossing the Chasm and Anthea’s implementation of it
21:11 Navigating partnerships
27:00 Funding with grants
29:19 Key skills in writing grants
32:48 What surprised Anthea most about the water sector
34:32 What she has learned since joining it
35:19 Anthea’s advice based on these learnings
37:05 Her experience in the Lithium market
39:52 Working with family
42:24 Anthea’s speaking and presenting skills and their value
46:01 Her most important piece of advice for aspiring water entrepreneurs
Links:
Burnt Island Ventures: https://www.burntislandventures.com/
2S Water: https://www.2swater.com/
Quotes:
"I've always been surprised at water treatment operators. They're such a special breed of people. They do it because they love it.”
"In the mining sector, when we look at it, there is no other real path to the market than through the large multinationals."
"If you don't have that kind of insight coming from the other side of the table, it's hard to get it anywhere else."
"Partnerships are completely fundamental... cultivating them is vitally important."
"Writing a grant is much like any other sales process... understand what the grant organization is trying to accomplish."
"The lab isn't the field... get out into the field as fast as you can."

When I started Burnt Island Ventures, I needed help. I needed help of all kinds. But one of the things I needed most as a first-time fund manager was credibility in the decision-making process. Alongside Ivy Nguyen, David Stanton agreed to become a member of our investment committee, and he put a crucial brick in the BIV credibility wall. In this episode, you will see why. David is deeply experienced in startups, growth companies, and corporates, and he now runs Cleanwater1, hired by Baird Capital after they purchased UGSI in 2022. I have learned so much from David, from management tactics to market assessment, and I know you will too. Please enjoy my conversation with David Stanton. 
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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David Stanton shares profound insights into the nuanced evolution of the water sector, from the consolidation era of the '90s to the contemporary landscape shaped by digital transformation and rate alignment. Delving into themes such as entrepreneurship, sales dynamics, and M&A strategies within the industry, he uncovers the intricacies of navigating structural dynamics and fostering operational excellence. With an emphasis on the paramount importance of sales in driving business growth and the imperative of building resilient virtual teams, today’s engaging dialogue offers invaluable insights into effective entrepreneurship and team management strategies. Ultimately, through past experiences and future aspirations, the episode illuminates the path towards sustainable success in the ever-evolving water sector landscape.
Episode Highlights:
0:00 Start
0:49 Introduction
1:53 David’s career in water
5:47 How water utilities are allowed to make money
10:57 David’s key learnings in entrepreneurship
14:23 How to do M&A well
19:39 Private equity 
23:40 The importance of the nomenclature used within the industry
26:12 Client and customer terminology
29:11 The role of consulting engineers
31:14 Clearwater1’s dual incentive structure
33:28 Changes in the water sector past, present and future
36:41 The industry’s public narrative
41:07 Hiring and managing teams
43:02 David’s one piece of advice for aspiring entrepreneurs
44:18 Christine Boyle’s “Why Deep Pain Leads to Great Products”
Links:
Burnt Island Ventures: https://www.burntislandventures.com/
Cleanwater1: https://cleanwater1.com/
Quotes:
"The industry really has been driven by what I would call the macro trends of the decade or so that were affecting the industry."
"For most businesses, the issue isn't, 'Does my product work and is it good?' It's 'How do I sell it at scale in a market that's so fragmented and disenfranchised?'"
"Our job as the leadership team, to be quite blunt, is to take advantage of the best path through the financial industry to meet the end or means that we’re trying to achieve."
"The number one killer of good ideas is valuation. If you sell your business at a stupid valuation, I mean, it's what killed my startup in 2012."
"Teams are virtual now... You want to solve for this. It's really, really an important skill."
"The revenue doesn't happen without sales, and the business doesn't happen without the revenue. What could be more important?"

Adam Tank's trajectory, from early leadership roles at GE to his entrepreneurial endeavors, offers a wealth of profound insights into the critical trilogy of water, technology, and entrepreneurship at the heart of this podcast. His experiences navigating the dynamic landscape of the water industry, as shared here today, offer valuable perspectives on the challenges, triumphs, and pivotal decisions that have shaped his extraordinary career. Together, he and Tom explore the importance of understanding customer needs, building trust, and effective communication in driving success in the water sector. They also review the strategic decisions, intellectual architecture, and relentless innovation which have propelled Transcend to its current role as an industry leader guided by the inspiring leadership of Adam and his talented team.
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
Episode Highlights:
0:00 Start
0:49 Introduction
1:45 Adam’s work history
6:58 Key stage gates in his career
14:20 Working with utilities and consulting firms
22:49 Transcend and the value it provides
27:47 Adam’s role at Transcend
28:52 His thoughts on marketing
31:29 Speaking the customer’s language
33:52 Company building as a ‘spin-off’
35:18 Starting with the ‘why’
37:52 The power of foster parenting
41:20 Adam’s most important advice for emergent water sector founders
Links:
Burnt Island Ventures: https://www.burntislandventures.com/
Transcend: https://transcendinfra.com/
Water We Talking About?: https://www.wateronline.com/solution/water-we-talking-about
Quotes:
"I stumbled into water... It's just an unbelievably compelling industry for so many reasons."
"What you think may be the thing that's valuable to the customer may not actually be the thing that's most valuable to the customer."
"The presence or absence of water not only impacts how much food you can produce…but it also has a significant impact on the safety of the food."
"The worst thing that can happen for an entrepreneur is to spend a year, two years, three years and all of Burnt Island's money building this thing that no one is willing to pay for."
"We need more people from outside of the sector, no question. But I will say that part of the reason that innovation is a bit slower in this industry is that we have had people come in that are not water experts, that have said, 'I can solve all of your water problems,' but they're coming with a different lens."
"Listen to your customer.”