Subscribe to the newsletter:

New Wave | Hugo Rauch | Substack

****

🌊 Obsession, Timing & the 50x Decision

What it really takes to back, and double down on, a climate breakout.

We’re joined by Otto Birnbaum, Founding Partner at Revent, an early-stage fund backing companies at the intersection of climate, demographic, and technological change. Revent was an early investor in tem, which recently raised a $75M round.

In this conversation, we unpack what happens inside a fund when a breakout company emerges, and how to think about follow-on strategy, ownership, timing, and conviction.

This episode is a masterclass in early-stage venture mechanics.

In our conversation, we covered:

→ How to spot exceptional founders (obsession, clarity of vision, and relentless execution)

→ Why Revent avoids the word “impact” (and what they focus on instead)

→ The original investment thesis behind tem

→ What a $200M+ valuation means for a $60M fund

→ How much ownership early-stage funds really need

→ When to double down, and when to de-risk at 50x

→ Why timing might matter more than anything else

→ Why 2026 belongs to AI, but climate infrastructure is far from dead

→ “Looking left” when everyone looks right

Otto breaks down fund math transparently:

10% ownership at a $300M valuation = ~$30M position

For a $60M fund, that’s half the fund returned, at least on paper

True breakout? When it returns the whole fund.

We also explore:

Why SPVs matter when you hit concentration limits

How to construct angel-heavy cap tables with “superpowers”

Why growth rate alone isn’t enough, margin and revenue stickiness matter

And the brutal truth: timing can kill or make a company.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit newwavenewsletter.substack.com