Why we invested in StormSensor
There’s guts and then there’s guts. Erin Rothman had a $4m Series A done and dusted on March 10th 2020. Then the world fell apart. Faced with no other options, and in a demonstration of unparalleled founder grit, she recovered her round, retained her team, and as a group they finished 2020 with significant progress in their digital and physical products, and doubled their expected recurring revenue for the year.
With some people you just know - and so do their teams. Ahead of their forthcoming Series A (which is moving quickly), we are delighted to announce our investment in StormSensor we completed in the Spring. Why did we do it?
Profound founder/market fit
With over a decade as a highly regarded stormwater consultant, Erin knows her industry upside down. She knows it makes no sense that consultants have to run out of their offices to landfill sites to sample stormwater when it rains. She knows that barely any cities really know how their stormwater networks behave, and so risk mistargeting upgrade spending, while also suffering flooding, sewer overflows, property damage etc. She speaks the language of her clients because she has been serving them for so long. This fit comes through at all stages of the client engagement, from initial contact to customer success.
Acceleration from a strong base
2020 was a challenge for everyone, but StormSensor ended the year with a significant pipeline, which has more than doubled since the start of the year, and potential EOY bookings could be up 7x in 2021. The pent up demand is clear, and the product is being pulled out of the team’s hands. They have leveraged non-dilutive capital from both grant awards and low-cost revolving working capital financing from BIV partner Bertzman Social Ventures. They’re also set up for rapid growth, with an exceptional leadership team (technical, operational, and commercial) in place.
Scar tissue
There is hard-won wisdom in this team - from fundraising to sales. We do not underestimate the value of experience in improving the quality of marginal decisions as a company grows. The team has shown an ability and willingness to stick together through some of the most challenging times a company can face, and emerged stronger for it. This makes them more likely to successfully navigate the fresh set of challenges that are inevitably coming as they scale the business. As an investor, this is a real source of confidence.
Huge and growing market
Rising sea levels and changing precipitation patterns are going to play merry hell with coastal and inland stormwater systems. Investment in these systems will be increasingly non-negotiable, and whether you’re Miami or Cincinnati, cities no longer have an excuse to mistarget that spending. StormSensor will be the targeting engine for hundreds of billions of dollars of infrastructure upgrades, minimizing waste when every percentage point counts.
Erin, Tracy, Dana, and all the team - welcome to the Burnt Island. Thank you for having us on this journey helping cities across the world become climate-resilient. And let’s make sure no more consultants have to drop everything when it rains...
