Today's episode explores three ideas that caught my attention:

1. The “conjoined twin” - Water touches every form of energy generation. Doug’s laser focus on this point made me consider what other interdependencies we often overlook.
2. Market signals can mislead on timing - It’s often said “It’ll take longer and cost more than you think.” Based on Doug’s comments, this saying applies even more in industrial applications - these things can take a long time to percolate, even when the market is responding positively.
3. The future bill always comes due - Doug’s perspective on how we underpay for water today by borrowing from future resources was a new one for me. I understand the “I want it now” mindset applying in consumer scenarios, but Doug’s experience suggests it applies just as much in the industrial setting.

I explore these ideas and more with Doug Lee, Co-founder of Flathead Forge. He is a rare combination of successful founder, veteran operator, and ecosystem builder in the industrial water sector. After leading multiple water technology companies to successful exits, including what is now Enerflex Water Solutions, Doug co-founded Flathead Forge to reinvent how hard tech companies scale. His journey from developing patented water treatment technologies to integrating acquisitions at Suez/Veolia has shaped his conviction that sustainable innovation requires more than just capital - it needs an integrated ecosystem of technical expertise, market access, and execution support. Today, he's applying these lessons as a venture builder, helping a new generation of founders navigate the unique challenges of commercializing industrial water solutions.

During our conversation, Doug shares:

• A framework for evaluating water technology investments that emphasizes the "why" and "who" before diving into technical or market specifics.
• Why water technology requires different investment horizons than traditional venture capital, including specific examples of adoption timeline challenges.
• A venture builder model designed specifically for hard tech that addresses key failure points in traditional investment approaches.

Connect with Doug

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All opinions are personal and may not reflect the views of The Diligent Observer. Not investment advice.