Revent — a brand new European early stage (pre-seed to collection A) enterprise capital fund with an ‘impression’ focus — is popping out of the gate immediately, and is poised to achieve its goal of a €50m ($60m) fund, with the primary shut of that already accomplished. Focusing on environmental and societal issues, Revent might be seeking to fund startups with each ‘function and revenue’. Headquartered in Berlin and investing throughout Europe it’s going to hone in on firms in Climate-Tech, well being and wellbeing, and financial empowerment.
The founding companions are Otto Birnbaum, who was beforehand with French VC Partech, but in addition labored at HelloFresh; Dr. Lauren Lentz formality of McKinsey and an knowledgeable in impression measurement; Emily Brooke MBE, founding father of Beryl, a micromobiilty startup; and Henrik Grosse Hokamp who labored beforehand for Partech’s late-stage fund.
Revent’s founder LP is Benjamin Otto, managing Partner on the Otto Group. Otto is a part of the influential and highly effective Otto household in Hamburg, founders of the Otto Group. Benjamin Otto additionally backed the launch of two different German VCs, e.ventures and Project A. Other buyers within the fund embrace Max Tayenthal (N26), Sascha Konietzke (Contentful), Verena Pausder (Fox & Sheep), Luis Hanemann (e.ventures), Benjamin Roth (Urban Sports Club) and Dr. Florian Heinemann (Project A).
Revent has thus far made 4 investments: Tomorrow Bank, a sustainable challenger financial institution based mostly in Hamburg
; Sylvera, a London-based firm that developed AI-enabled monitoring of nature-based carbon offsetting tasks; Tmrow, a Denmark-based workforce constructing expertise merchandise for shoppers and firms to grasp and scale back their carbon footprint; and internet function, an impression datastream for asset managers to grasp the quantitative internet impression of their portfolio, performing like a “Bloomberg” terminal of impression.
Commenting on the launch, Otto Birnbaum, Revent General Partner mentioned: “We’re not performing as philanthropists, however moderately purpose to display that attaining very engaging monetary returns is feasible exactly due to the optimistic impression these firms will obtain.”
Benjamin Otto, Revent Anchor Investor mentioned: “Social and ecological challenges have reached a brand new stage of urgency. We depend upon entrepreneurial innovation to search out new options. With Revent, we need to create a platform for founders that not solely offers them with optimum assist but in addition contributes to a change in mindset: Entrepreneurial success and social-ecological impression can reinforce one another.”
Speaking to TechCrunch, Brooke and Lentz mentioned the “function financial system” has been accelerated by the Covid pandemic, which has amplified most of the planet’s systemic issues, equivalent to inequality of entry to healthcare, EdTech, creating huge adjustments on the earth of labor. Their mission, they inform me, is to positively have an effect on the lives of 1 million individuals and to abate 5 million tons of C02. In order to realize this, the fund will hyperlink fund carry to its impression targets.
They additionally say they’re seeing a brand new wave of founders who need to sort out these issues. While general VC funding is up solely by about 2%, funding in ‘impression’ areas equivalent to ed-tech and psychological well being is booming.
As Brooke advised me on a name: “We need to construct a brand new model of enterprise capital, that authentically and genuinely prioritizes environmental returns and societal returns, together with industrial.”
Lentz mentioned: “We suppose that there’s this technology of founders who’re in search of an investor who actually brings each financing and an impression mindset. So not a classical impact-first impression investor, or a basic VC that’s solely wanting on the development trajectory and the monetary upside returns. And we expect that this founder is in search of an investor who actually believes that these two issues reinforce one another, and that the returns are going to be generated by optimistic societal impression, and that there must be a European house for this type of founder.”
The major query is, how are they going to measure the impression?
Lentz mentioned: “We view this holistically, and we begin very early, so after we’re in diligence we undergo a structured means of principally attempting to evaluate the workforce, the founder DNA, how dedicated are they to attaining optimistic impression. We’re investing very early, normally pre-product, so we have to perceive what’s the motivation for this workforce. And then we attempt to systemically have a look at the totally different dimensions of impacts or how deep the impression, how many individuals will they attain, what additionality are they providing. We undergo a structured train throughout the due diligence. And then we do one thing a bit distinctive which is we do an impression forecast. And so earlier than we pull the set off and make investments we principally take what the founders have advised us, and what we now have discovered by our conversations about potential development trajectories, and we attempt to make some estimates and assumptions across the depth of the impression that the corporate can have. So it may be how a lot carbon do we expect that the corporate will have the ability to beat or avert over the subsequent eight years, or what number of lives would they have the ability to considerably have an effect on and to what extent… We’re not constructing a 20,000 line mannequin, however we are attempting to place some rigour round what we anticipate to occur on the impression aspect. Only if we anticipate that the corporate goes to have very vital potential upside from a industrial perspective and likewise very vital impression upside would we make investments.”