Revent: A New Impact-Focused Venture Capital Fund Launches in Europe

A new European venture capital fund, Revent, is entering the early-stage investment landscape (covering pre-seed to Series A rounds) with a dedicated focus on “impact” investing. The fund is on track to secure its target of €50 million ($60 million), having already completed its initial close.

Focus on Purpose and Profit

Revent will prioritize startups addressing critical environmental and societal challenges, seeking ventures that demonstrate both a strong sense of purpose and the potential for substantial financial returns. The fund’s investment scope encompasses companies operating within climate tech, health and well-being, and economic empowerment sectors.

The Founding Team

The fund is led by a team of experienced professionals. This includes Otto Birnbaum, previously associated with Partech and HelloFresh; Dr. Lauren Lentz, a former McKinsey consultant specializing in impact measurement; Emily Brooke MBE, the founder of micromobility company Beryl; and Henrik Grosse Hokamp, with prior experience at Partech’s late-stage fund.

Key Investors and Backing

The anchor investor for Revent is Benjamin Otto, a member of the prominent German Otto family, founders of the Otto Group. The Otto Family has previously supported the establishment of other German VCs, namely e.ventures and Project A.

• Additional investors include Max Tayenthal (N26)
• Sascha Konietzke (Contentful)
• Verena Pausder (Fox & Sheep)
• Luis Hanemann (e.ventures)
• Benjamin Roth (Urban Sports Club)
• Dr. Florian Heinemann (Project A)

Initial Investments

To date, Revent has made four strategic investments:

• Tomorrow Bank: A Hamburg-based sustainable challenger bank.
• Sylvera: A London-based firm utilizing AI for monitoring nature-based carbon offsetting initiatives.
• Tmrow: A Danish company developing technology solutions for consumers and businesses to track and minimize their carbon footprint.
• net purpose: An impact data provider for asset managers, offering quantitative insights into portfolio impact – functioning as a “Bloomberg” terminal for impact investing.

A Focus on Financial Returns Through Impact

Otto Birnbaum, Revent’s general partner, emphasized that the fund is not operating as a philanthropic organization. Instead, they aim to prove that significant financial returns can be achieved *because* of the positive impact generated by their portfolio companies.

Creating a New Mindset

Benjamin Otto, the fund’s anchor investor, stated that social and ecological challenges demand urgent attention. He believes entrepreneurial innovation is crucial for developing solutions and that Revent will serve as a platform for founders, fostering a mindset where entrepreneurial success and positive social-ecological impact are mutually reinforcing.

The Accelerated “Purpose Economy”

Brooke and Lentz highlighted that the COVID-19 pandemic has accelerated the “purpose economy,” exacerbating systemic issues like inequalities in healthcare and education access, and causing substantial shifts in the work landscape. Their core mission is to positively influence the lives of 1 million individuals and reduce carbon emissions by 5 million tons.

A Growing Wave of Impact-Driven Founders

They are observing a growing number of founders dedicated to addressing these challenges. While overall VC investment has seen a modest increase of around 2%, investment in “impact” areas like edtech and mental health is experiencing rapid growth.

Redefining Venture Capital

Brooke articulated their vision to establish a new model for venture capital, one that genuinely prioritizes both environmental and societal returns alongside commercial success.

Balancing Impact and Financial Returns

Lentz explained that they are seeking founders who desire an investor that integrates both financial acumen and an impact-driven perspective. This differs from traditional impact-first investors or VCs solely focused on growth and financial gains. They believe founders are looking for investors who recognize the synergy between these two elements, where positive societal impact drives financial returns.

Measuring Impact: A Holistic Approach

The question of impact measurement is central to Revent’s strategy.

Lentz detailed their holistic approach, beginning with a thorough assessment of the team and founder’s commitment to positive impact during the due diligence process. Given their focus on early-stage investments, often pre-product, understanding the team’s motivations is paramount.

They systematically evaluate the depth and reach of potential impact, as well as the uniqueness of the proposed solution. A key element is the development of an “impact forecast,” where they estimate the potential impact – such as carbon reduction or lives affected – based on founder projections and growth scenarios. This rigorous, yet pragmatic, approach ensures that investments align with both commercial viability and significant impact potential.