Siemon, a Dutch entrepreneur, has directed the same passion for sustainable and impact investments with PureTerra Ventures as he had in his lifelong career of IT deals.
PureTerra’s mission is to enable technologies and entrepreneurs like Siemon to provide dramatic sustainable solutions which match the long-term interest of the global environment.
“I believe in the team, which is heavily invested in the fund themselves and are entrepreneurs,” Siemon said.
“They know what it takes to grow a business. They contribute to SDGs [Sustainable Development Goals] by conserving the water supply, supporting climate change mitigation and adaptation, and growing the water capital market. These targets essential to solving water and they recognised the investment opportunity in it.”
PureTerra closed a €25 million ($28.9 million) first round in June 2021 and is working towards a €80 million ($92.4 million) final close in Q2 2022, to invest in 13-15 water businesses with an initial ticket size of €3 million ($3.4 million).
Before PureTerra Ventures presents to selected family and private investors at the virtual Campden Wealth Funds and Direct Investments meeting on 21 October, Siemon tells CampdenFB his strategy for sustainable investing and why he has invested with PureTerra.
Could you explain your investment approach and asset allocation to impact or sustainable investments?
I’ve been a serial IT entrepreneur since I was 18, but when I sold my last company, I started considering the environment. I was introduced to impact investing through such organisations as Toniic and PYM. I went on to invest 100% in sustainable investments to solve environmental and societal problems.
I believe technical advancements are essential for a sustainable future. Impact and financial investments are not exclusive, but mutually intertwined.
I source my deals through a global network of impact communities. I have an interest in first-time funds so I can create a catalysing effect with my early commitments.
Why have you selected “water” as a theme to invest in? How does “water” fit in your impact goals?
Water is a largely overlooked issue, a resource that is taken for granted—open the tap and water flows, yet the water balance is broken.
Water is an enabler of many SDGs in emerging and developed countries.
My businesses were in IT and data centres. Water and IT might sound miles apart, yet water is used for cooling purposes and indirectly for energy generation. More than half of the consumption in this industry is potable water.
I’ve invested heavily in food, agri and plant-based ventures and funds. Water is related to both energy and food in a nexus. I have a diverse portfolio, but everything is connected.
Why have you invested in PureTerra Ventures?
There are thousands of different solutions globally addressing water distress, but how to select the right deals? Investing in water requires water technology and industry expertise to select deals and grow businesses for maximum impact and return.
I saw that PureTerra categorised more than 1,200 technologies, have unique overview of the water technology market globally and an active pipeline of deals. The founders of PureTerra prepared well, started investing and then recognised that the opportunity—and the need—is much larger, which is why they launched a fund to create larger impact.
PureTerra fits in my investment criteria as I like to invest in propositions where I can catalyse, or trigger, to get it off the ground. PureTerra was the first fund addressing the shortage of capital for growth stage game-changing water solutions.
What are your expectations towards PureTerra?
Water is a proven assets class of balanced risk and returns, I expect to build a diversified portfolio of businesses that address the various issues in water, from water efficiency, re-use, prevention of water losses, securing water quality and the reduction of contaminants.
With the entrepreneurship and water expertise in the team, I expect rapid scaling of the businesses. I look forward to the measuring and reporting on the actual impact achieved
There is momentum in investing in water—financial and strategic investors are allocating capital. I am expecting the PureTerra team to continue to take the lead utilise their network and the momentum in reducing water footprint and realising value exits.
For inquiries about the virtual Campden Wealth Funds and Direct Investments meeting on 21 October, email Kevin Grant via email@example.com.