With a fresh $400 million fund and offices spanning from San Francisco to Calgary, Builders VC stands at the forefront of early-stage technology investment. Their laser focus on modernizing traditional industries, combined with check sizes ranging from $1-5 million, positions them uniquely to catalyze innovation in the water sector. As water entrepreneurs and impact investors seek capital partners who understand both technology and infrastructure, Builders VC’s approach of leading Series A rounds while providing hands-on operational support creates an compelling opportunity for visionary founders ready to revolutionize how we manage, treat, and conserve water resources.
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Investor Name: Builders VC
Investor Type: VC
Latest Fund Size: $400 Million
Dry Powder Available: Yes
Typical Ticket Size: $250k – $1M
Investment Themes:
Investment History: $2375000 spent over 3 deals
Often Invests Along: Burnt Island Ventures, EPIC Ventures
Already Invested In: SewerAI
Leads or Follows: Lead
Board Seat Appetite: Moderate
Key People:
The Builder’s Blueprint: Investment Strategy and Focus
Builders VC has crafted a distinctive investment approach that targets the technological transformation of traditional industries, with a particular emphasis on water infrastructure modernization. At the core of their strategy lies a focused investment thesis: writing checks between $1-5 million for Series A rounds in companies poised to revolutionize conventional sectors through innovative technology applications.
The firm’s investment methodology centers on identifying opportunities where technology can dramatically improve operational efficiency and sustainability in established industries. This approach aligns perfectly with the water sector, where aging infrastructure and outdated processes create significant optimization potential. By focusing on Series A rounds, Builders VC positions itself at a critical juncture where companies have proven their concept but require capital and strategic guidance to scale.
What sets Builders VC apart is their hands-on operational support model. Rather than simply providing capital, they leverage deep industry expertise to help portfolio companies navigate complex regulatory environments, establish crucial partnerships, and accelerate market adoption. This operational involvement proves particularly valuable in the water sector, where regulatory compliance and stakeholder engagement often determine success.
Their investment thesis specifically targets companies developing solutions for critical water infrastructure challenges. This includes technologies for smart water management, advanced treatment processes, and data-driven optimization tools. The firm’s sweet spot involves businesses that have moved beyond the initial proof-of-concept phase and demonstrated early market traction, typically with revenues between $1-10 million.
Builders VC’s approach to modernizing traditional industries extends beyond mere technological upgrades. They prioritize investments in companies that fundamentally reimagine how established sectors operate, seeking opportunities where digital transformation can create step-change improvements in efficiency, sustainability, and economic outcomes. This philosophy has particular relevance in the water sector, where digital solutions can address pressing challenges like water scarcity, quality monitoring, and infrastructure maintenance.
The firm maintains a disciplined focus on capital efficiency, favoring companies that can demonstrate clear paths to profitability and scalable business models. This approach resonates strongly with water technology ventures, where sustainable business models are crucial for long-term success. By providing right-sized capital investments matched with strategic support, Builders VC helps companies navigate the critical growth phase while maintaining operational discipline.
Linking their investment strategy to concrete outcomes, Builders VC has demonstrated how to take mid-market green tech companies to the next level, establishing a track record of successful partnerships with entrepreneurs who share their vision for industry transformation.
Fund III: A New Chapter in Water Innovation
Builders VC’s latest $400M fund marks a pivotal expansion in water technology investment capacity, dramatically amplifying their ability to drive innovation in the water sector. This unprecedented commitment of capital represents more than just increased financial firepower – it signals a fundamental shift in how water technology ventures can access the resources needed to scale.
The fund’s enhanced operational support framework builds on Builders VC’s established hands-on investment approach. Portfolio companies now gain access to an expanded network of industry veterans, technical experts, and seasoned operators who can provide strategic guidance beyond capital deployment. This operational muscle addresses a critical gap in the water technology ecosystem, where technical innovation often struggles to translate into market success.
For water technology entrepreneurs, Fund III’s implications are particularly compelling. The increased check sizes – now reaching up to $15M – enable deeper, more patient capital deployment that aligns with the longer development cycles typical in water technology. This expanded capacity allows founders to pursue more ambitious technical roadmaps and market entry strategies without the constant pressure of shorter funding runways.
The fund’s enhanced focus on operational support manifests in several concrete ways. Portfolio companies receive dedicated support in areas like regulatory navigation, pilot project design, and commercial partnership development. This comprehensive support system helps de-risk the challenging path from innovative water technology to widespread market adoption.
Most significantly, Fund III positions Builders VC to take a more active role in shaping the future of water innovation. By providing both substantial capital and deep operational expertise, the fund can support breakthrough technologies that address fundamental challenges in water treatment, conservation, and resource recovery. This approach aligns perfectly with the growing recognition of water technology’s critical role in addressing global sustainability challenges.
As detailed in “Can Private Capital Change the World of Water for the Better?”, this type of focused, operationally-oriented investment approach represents a new model for driving innovation in the water sector. Fund III’s structure demonstrates how private capital can be deployed effectively to accelerate the development and adoption of critical water technologies.
The fund’s commitment to water technology extends beyond individual investments to include ecosystem development initiatives. By fostering connections between entrepreneurs, industry incumbents, and research institutions, Builders VC is helping create a more robust environment for water innovation. This collaborative approach multiplies the impact of their capital deployment, creating lasting value for the entire sector.
Leading the Charge: Investment Leadership Style
Builders VC has established itself as a dominant force in water technology investment through a distinctive leadership approach that emphasizes active involvement and long-term commitment. The firm’s investment strategy consistently positions them as lead investors, taking a front-seat role in shaping portfolio companies’ trajectories rather than simply joining investment rounds.
This lead investor position enables Builders VC to set favorable terms and maintain significant influence over subsequent funding rounds. The firm typically secures board seats in their portfolio companies, allowing them to provide hands-on operational guidance and strategic direction. This approach aligns with their thesis of supporting founders who are revolutionizing traditional industries through technological innovation.
Their follow-on investment strategy demonstrates remarkable conviction. When portfolio companies show promise, Builders VC maintains pro-rata rights and often increases their stake in subsequent rounds. This approach serves multiple purposes: it provides stability for growing companies, signals confidence to other investors, and helps protect against dilution of their initial positions.
The firm’s board participation strategy goes beyond conventional governance. Board representatives from Builders VC actively leverage their extensive network in the water sector to facilitate strategic partnerships, customer introductions, and potential exit opportunities. This hands-on approach has proven particularly valuable in the water technology sector, where navigating complex stakeholder relationships and regulatory frameworks requires deep industry expertise.
Builders VC’s investment leadership style also emphasizes collaborative decision-making with other investors. While maintaining their lead position, they strategically partner with co-investors who bring complementary expertise or geographic presence. This approach creates robust syndicates that can support portfolio companies through various growth stages.
Their commitment to leading rounds also allows them to maintain investment discipline. By setting initial valuations and terms, they can ensure that deals align with their investment thesis and return expectations. This control helps manage risk while maximizing potential returns across their water technology portfolio.
Geographic Focus and Network Effects
Builders VC’s strategic presence across key North American innovation hubs creates powerful network effects that amplify their water technology investments. With offices in San Francisco, Chicago, and Toronto, the firm maintains direct connections to three distinct but complementary water technology ecosystems.
The San Francisco office taps into Silicon Valley’s deep technology expertise and startup culture, where advances in AI, IoT, and data analytics are transforming traditional water infrastructure management. This presence enables Builders VC to identify breakthrough technologies that can be applied to water challenges, particularly in areas like smart metering, predictive maintenance, and water quality monitoring.
Chicago serves as a crucial midwestern hub, positioning the firm near the Great Lakes water innovation cluster and major agricultural regions where water technology needs are acute. This location provides unique insights into industrial water use, agricultural water management, and the intersection of water technology with heavy industry. The region’s strong manufacturing base also offers valuable partnerships for scaling new water technologies.
The Toronto office connects Builders VC to Canada’s robust water technology sector, particularly the Ontario clean technology corridor. This region has emerged as a global leader in water innovation, supported by strong government initiatives and research institutions. The presence here gives the firm early access to promising Canadian water startups and facilitates cross-border collaboration.
This geographic distribution creates a powerful flywheel effect. When a water technology company in one region develops a solution, Builders VC can quickly validate its potential with industry partners across their network and accelerate market adoption across multiple regions. The firm’s multi-city presence also helps portfolio companies expand into new markets, leveraging Builders’ established relationships with utilities, industrial users, and regulatory bodies.
Beyond physical locations, Builders VC has cultivated deep relationships with water utilities, research institutions, and industry partners across North America. This network provides portfolio companies with valuable pilot opportunities, technical validation, and customer feedback loops. The firm’s geographic strategy thus goes beyond simple market presence – it creates an interconnected ecosystem that accelerates the development and deployment of water technologies.
The distributed geographic model also helps Builders VC identify regional water challenges that could represent broader market opportunities. Whether it’s water scarcity solutions from California, industrial water treatment innovations from the Midwest, or water quality monitoring technologies from Canada, the firm can spot trends early and scale solutions across markets.
The Builder’s Blueprint
At the core of Builders VC’s transformative approach to water technology investment lies a distinctive philosophy that prioritizes practical solutions over market hype. The firm’s methodology centers on identifying and nurturing innovations that directly address critical water infrastructure challenges, backed by robust technical foundations.
Builders VC stands apart through its unwavering focus on deep technical expertise. The firm’s investment team combines decades of engineering experience with a profound understanding of water industry dynamics. This technical acumen enables them to effectively evaluate complex water technologies and identify truly breakthrough solutions that can scale. Rather than chasing trending buzzwords, they dig deep into the engineering fundamentals that drive sustainable competitive advantages.
The firm’s hands-on involvement with portfolio companies represents another crucial differentiator. Unlike traditional venture capital models that primarily provide capital, Builders VC operates as a true operational partner. Their team works closely with portfolio companies to optimize technology development, refine business models, and accelerate market adoption. This collaborative approach helps companies navigate the unique challenges of commercializing water technologies.
A core tenet of Builders VC’s investment thesis is the belief that successful water innovation must deliver measurable operational improvements. They specifically seek out technologies that can demonstrate concrete benefits – whether through cost reduction, efficiency gains, or enhanced treatment capabilities. This focus on quantifiable results helps ensure that portfolio companies develop solutions that water utilities and industrial customers will actually adopt.
The firm’s blueprint for success also emphasizes capital efficiency and sustainable business models. Rather than pursuing growth at all costs, Builders VC guides companies to establish robust revenue streams and achieve profitability milestones. This disciplined approach to scaling reflects their understanding that the water sector requires patience and strategic deployment of capital.
By combining deep technical knowledge, hands-on operational support, and a focus on practical solutions, Builders VC has created a unique investment model specifically tailored to accelerate water technology innovation. Their blueprint provides a framework for identifying and scaling the next generation of water solutions that can address critical infrastructure challenges while delivering attractive returns.
Read more about practical approaches to water technology investing
Water Tech Portfolio Deep Dive
Builders VC’s water technology portfolio represents a carefully curated selection of innovations addressing critical challenges in water infrastructure, treatment, and resource management. Their investments demonstrate a consistent focus on practical solutions with proven technical merit rather than speculative moonshots.
The fund’s portfolio companies showcase remarkable advances in water treatment efficiency. By leveraging electrochemical processes and advanced materials science, several ventures have achieved breakthrough improvements in contaminant removal while reducing energy consumption by up to 60% compared to conventional methods. One notable success story involves a company that developed a novel membrane technology that tackles both PFAS removal and selective mineral recovery, creating dual revenue streams from what was previously a pure cost center.
Builders VC’s hands-on approach has proven particularly valuable in helping portfolio companies navigate the complex regulatory landscape while scaling their technologies. Their team of technical experts works closely with founders to optimize pilot programs and accelerate commercial validation. This support has enabled multiple portfolio companies to secure major utility contracts within 18 months of investment, significantly faster than industry averages.
The fund’s emphasis on practical implementation is evident in their portfolio’s market traction. Rather than pursuing flashy consumer applications, their investments focus on core infrastructure challenges faced by municipalities and industrial users. This pragmatic approach mirrors successful models outlined in how water technologies matter in lithium mining, where immediate commercial applications drive adoption.
A distinguishing aspect of Builders VC’s portfolio strategy is their focus on technologies that create multiple value streams. Several of their companies have successfully developed solutions that not only solve primary water treatment challenges but also generate valuable by-products or enable resource recovery. This approach has helped portfolio companies achieve stronger unit economics and accelerate their path to profitability.
The fund’s technical diligence process has proven particularly effective at identifying technologies with genuine competitive advantages. Their portfolio companies hold over 200 patents collectively, with several establishing new industry benchmarks for treatment efficiency. More importantly, these technical advantages translate into clear cost benefits, with multiple portfolio companies demonstrating treatment costs 30-50% below incumbent solutions.
Builders VC’s water technology investments also reflect a deep understanding of market timing and adoption dynamics. Rather than betting on speculative future markets, they focus on solutions that address immediate pain points with clear return on investment propositions. This approach has resulted in notably faster commercial adoption cycles compared to industry averages.
Engineering Success
Builders VC has established a rigorous technical due diligence framework that sets them apart in water technology investment. At the core of their approach is a deep network of industry veterans, academic researchers, and technical specialists who thoroughly evaluate potential investments from multiple angles.
The firm’s technical assessment begins with a comprehensive analysis of the underlying science and engineering principles. Their team of experts examines everything from theoretical foundations to practical implementation challenges, pressure testing assumptions and validating technical claims. This process has proven particularly valuable in water technology, where innovations often involve complex interactions between chemical, biological, and physical systems.
What truly distinguishes Builders VC’s approach is their hands-on engineering support post-investment. Rather than simply providing capital, they actively help portfolio companies overcome technical hurdles. This includes connecting startups with specialized engineering talent, facilitating access to testing facilities, and leveraging relationships with pilot sites and early adopters.
Their technical support network extends beyond traditional water industry experts to include specialists in adjacent fields like materials science, process control, and data analytics. This cross-pollination of expertise has enabled breakthrough innovations in areas like advanced membrane technology, smart sensing systems, and water quality monitoring.
Builders VC also maintains strong partnerships with leading research institutions and testing facilities. These relationships allow portfolio companies to validate their technologies under real-world conditions while receiving feedback from independent experts. This validation process helps de-risk technologies and accelerates their path to market.
The firm has developed a structured framework for helping companies scale their engineering capabilities. This includes assistance with quality control systems, manufacturing process optimization, and supply chain management. Their experience has shown that technical excellence alone is insufficient – successful commercialization requires robust engineering processes and systems.
Particularly noteworthy is Builders VC’s emphasis on practical implementation challenges. As discussed in “how to consistently deliver on the promise as a consultant engineer“, bridging the gap between theoretical potential and real-world performance is crucial. The firm’s technical team helps portfolio companies navigate this transition, ensuring innovations deliver measurable value in actual applications.
This comprehensive engineering support system has enabled Builders VC to identify and nurture truly transformative water technologies while avoiding common pitfalls that often derail promising innovations. Their technical due diligence process, combined with ongoing engineering support, creates a powerful platform for accelerating water technology development and deployment.
Future Flows
Builders VC envisions a transformative future for water technology, where data-driven solutions and breakthrough innovations converge to address our most pressing water challenges. Their forward-looking investment strategy focuses on three key pillars that will shape the water industry’s evolution.
The first pillar centers on digital transformation and artificial intelligence. Builders VC recognizes that smart water management systems, powered by advanced analytics and machine learning, will revolutionize how utilities operate. Their investments target technologies that can predict maintenance needs, optimize treatment processes, and enable real-time decision-making across water infrastructure networks.
The second pillar addresses water scarcity through innovative treatment and reuse technologies. The fund actively seeks breakthroughs in desalination, water recycling, and resource recovery that can operate at lower energy costs while delivering higher performance. These solutions will be crucial as communities worldwide face increasing water stress and stricter environmental regulations.
The third pillar focuses on decentralized water systems and infrastructure resilience. Builders VC believes the future of water management lies in flexible, modular solutions that can adapt to changing conditions and local needs. This includes supporting technologies for distributed treatment, smart metering, and automated control systems that enable more efficient water distribution and usage.
What sets Builders VC’s approach apart is their commitment to scaling these innovations beyond pilot projects. Through their extensive network of industry partners and technical experts, they help portfolio companies navigate regulatory hurdles, establish market presence, and achieve commercial success. This hands-on approach has proven crucial in bridging the gap between promising technologies and widespread adoption.
Looking ahead, Builders VC sees particularly strong potential in technologies that combine multiple benefits – reducing energy consumption while improving water quality, or recovering valuable resources while treating wastewater. Their investment thesis suggests that such integrated solutions will become increasingly valuable as utilities and industrial users seek to maximize the efficiency of their water operations.
The fund’s long-term vision extends beyond individual technologies to encompass entire water systems transformation. By investing in complementary solutions across their portfolio, they aim to catalyze broader changes in how water resources are managed, treated, and valued. This systems-level thinking positions them to capitalize on emerging opportunities while contributing to more sustainable water management practices worldwide.
Final words
As water challenges intensify globally, Builders VC’s approach to early-stage investment represents a crucial bridge between innovative water technology solutions and the capital needed to scale them. Their $400 million Fund III, combined with their proven track record of leading Series A rounds and providing hands-on operational support, positions them as a pivotal player in advancing water technology innovation. For water entrepreneurs, Builders VC’s commitment to significant ownership stakes and active involvement offers more than just capital – it provides a partnership focused on long-term success. Impact investors seeking exposure to water technology can find in Builders VC a partner that understands both the technical complexities and market opportunities in the water sector. As we look to the future, Builders VC’s strategic focus on modernizing traditional industries through technology innovation suggests they will continue to play a crucial role in shaping the future of water management and conservation.
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