to redo – A new European early stage (former seed of Series C) venture capital fund with ‘impact’ focus – coming out of the gate today, and set to reach its target of € 50m ($ 60m) fund , Already completed. Focusing on environmental and social problems, Revanth plans to start a startup with both ‘purpose and benefits’. Headquartered in Berlin and investing across Europe, it will depend on companies in climate-technology, health and well-being, and economic empowerment.
The founding partner is Otto Birnbaum, formerly with French VC Partach, but also working at HelloFresh; Dr. Lauren Lentz McKinsey, an expert in formality and impact measurement; Emily Brooke MBE, founder of Beryl, a micromobility startup; And Heinrich Grosse Hocamp who previously worked for Parttech’s late-stage fund.
The founder of Revent is LP Benjamin Otto, a managing partner in the Otto Group. Otto is part of the influential and powerful Otto family in Hamburg, the founders of the Otto group. Benjamin Otto also supported the launch of two other German VCs, E.Work and Project A. Other investors in the fund include Max Tenthal (n 26), Sacha Konitzke (Contentful), Verena Poder (Fox & Sheep, Louis Hahnemann (E). Enterprise), Benjamin Roth (Urban Sports Club) and Drs. Florian Hahnemann (Project A).
Revent has made four investments so far: Bank tomorrowA permanent challenger bank located in Hamburg; Silvera, A London-based company that developed AI-enabled monitoring of nature-based carbon offsetting projects; TmrowBuilding a Denmark-based team to understand technology products for consumers and companies and reduce their carbon footprint; And Pure purpose, An influence datastream for asset managers to understand the quantitative net effect of their portfolio, acting like a terminal of the “Bloomberg” effect.
Commenting on the launch, Revent General Partner, Otto Birbonum, said: “We are not acting as philanthropists, but rather demonstrating that these companies have very attractive financial benefits due to the positive impact they receive possible.”
Benjamin Otto, Revent Anchor Investor, said: “Social and ecological challenges have reached a new level of urgency. We rely on entrepreneurial innovation to find new solutions. With Revent, we want to create a platform for founders that not only provides them with optimal support, but also contributes to a change in mindset: entrepreneurial success and socio-ecological impacts can reinforce each other. “
Speaking to TechCrunch, Brooke and Lentz said that the “objective economy” has been accelerated by the Kovid epidemic, which has exacerbated many of the planet’s systemic problems, such as healthcare, adtech inequality, in the world of work at large To create change Their mission, they tell me, is to positively impact the lives of 1 million people and end 5 million tons of C02. To achieve this, the fund will link the fund carry to its impact targets.
They also say that they are seeing a new wave of founders who want to tackle these problems. Overall investment is about 2%, while investment in ‘impact’ places such as ad-tech and mental health is booming.
As Brooke said to me on a call: “We want to create a new version of venture capital, which commercially prioritizes environmental returns and social returns.”
Lentz said: “We think this generation of founders is looking for an investor who really brings both financing and an impact mindset. So there’s not a classical impact-first effect investor, or a classic VC who The only growth trajectory and financial reversal is seeing returns. And we think this founder is looking for an investor who actually believes that these two things reinforce each other, and that the returns are positive social The impact arises, and there needs to be a European house for such a founder. “
The main question is, how will they measure the impact?
Lentz said: “We look at it holistically, and we start very early, so when we’re in diligence we basically go through a structured process to assess the team, the founding DNA, How committed they are to achieving positive impact. We are investing very quickly, usually pre-product, so we need to understand what the motivation is for this team. And then we can look at different dimensions of impact. We try to look systematically or how deep the impact is, how many people they will reach, what additions they are offering. We go through a structured practice during the due diligence. And then we do something unique that we Guess a forecast. And so before we pull the trigger and invest we take basically what the founders told us, and we’ve learned through their conversations about potential growth trajectories, And we try to make some guesses and guesses around the depth of the company’s impact. It may be how much carbon we think the company can beat in the next eight years or, on average, or how many lives it will be able to affect and to what extent… We are not building a 20,000 line model, but we Trying to have some rigor around what they expect to happen on the impact side. Only if we anticipate that the company is going to have a very significant capacity from a business point of view and at the same time a very significant impact will reverse, we will invest. “