BGF backs Origin Tech to expand AI water leak tools

BGF has made a multi-million-pound investment in Origin Tech, a North East-based water technology business that supplies leak detection and repair services to water companies.

Origin Tech was founded in 2019 by Phil Surtees and John Marsden. The company works with water companies on leakage reduction and related engineering services.

Origin Tech said it designs and delivers technologies that identify leaks and carry out repairs. The company said its tools combine artificial intelligence, satellite data and trenchless repair methods.

Leak Detection

One product, Origin Orbit, uses AI and satellite-enabled leak detection. Origin Tech said the system allows water companies to identify leaks within a 30m area.

Trenchless Repair

The company also sells Origin No Dig. Origin Tech said the product seals leaks without excavation. The company said the method does not require crews to know the precise location of a leak.

Origin Tech said this approach saves time and money for water companies. The company also said it reduces carbon emissions and avoids disruption to customers and roads.

BGF said the investment will go into continued product development. The investor also said it will back Origin Tech's growth and internationalisation.

John Marsden, Director and founder of Origin Tech, said: "In 2019, we set out on a mission to become water industry innovators by blending technology and engineering to drive down water loss and protect the environment.

"In a short space of time, we have turned that vision into a reality, saving over three billion litres of water and repairing more than 10,000 leaks. Earlier this year, we began to roll out our offering internationally, seeing potential and success  in overseas markets. However, in order to fully capitalise on this potential, we needed an investment partner with the appetite and ambition to back a high-growth business like ours, as well as a flexible investment model that will allow us to realise our far-reaching goals. BGF fits the bill in every respect, and we're delighted to be partnering with them."

Regional Funding

The deal sits within a broader funding programme that BGF has set out for UK businesses. The investor recently announced a £3 billion commitment to support high-potential companies across the UK over the next five years.

BGF said £400 million of that total has been earmarked for businesses in Yorkshire and the North East. The investor said this builds on £711 million already invested in the regions since 2011.

BGF has a presence in Newcastle. The investor said the office forms part of its approach to addressing regional investment gaps.

BGF describes itself as a minority growth capital investor. It said it takes a long-term approach to backing small and mid-sized companies across sectors.

John Healey, Investor at BGF, commented: "Since its commercial launch three years ago, Origin has scaled rapidly, quickly establishing itself as a key innovator for the UK water market. 

"With John, Phil and the team delivering an exciting growth plan being scaled from the North East, Origin has all the hallmarks of becoming a real industry disruptor, pushing boundaries – both domestically and overseas – through its innovative satellite-enabled leak detection technology and trenchless leakage repair. Origin is on an impressive growth trajectory, with high aspirations for the future, and we're delighted to be partnering with them on the next phase of their scale-up journey."

Advisers on the transaction included Sintons and Azets for Origin Tech. BGF used Muckle and BlueTech Research.

Origin Tech said it has started an international roll-out of its offering and plans further product development alongside BGF's investment.