Updated · 1 min read
What is a family office, and do they invest in startups?
What family offices are, the difference between single and multi-family offices, how they invest in startups, and how founders can approach them.
A family office is a private company that manages the wealth of one or more wealthy families. Besides public markets and real estate, many family offices invest directly in private companies, including startups.
Single vs multi-family offices
| Single-family office | Multi-family office | |
|---|---|---|
| Serves | One family | Several families |
| Decision making | Often fast, close to the family | More process, shared across clients |
| Startup investing | Common, often driven by the family's interests | Less common, usually via funds |
How family offices invest in startups
- Direct investments, usually at seed, Series A or later, often alongside a venture capital firm that leads.
- Fund investments, as limited partners in venture funds.
- Strategic bets in sectors close to the family's own business, such as real estate, consumer goods or manufacturing.
Family offices tend to be patient, can write sizeable cheques, and are less tied to a fund's timeline than a VC firm. They also vary much more: each has its own preferences, and few publish a formal thesis.
How founders can approach family offices
- Look for sector overlap. A family that built a logistics business is more likely to back a logistics startup.
- Use introductions. Family offices are private and rarely respond to cold pitches; warm introductions through advisors, bankers or portfolio founders work better.
- Bring a lead or a clear round. Many family offices prefer to follow a VC lead rather than set terms themselves.
- Be clear about the long term. Many care about governance, reputation and the long-term story as much as returns.
Browse family offices in the Investorsync directory, including family offices in the US.
Questions
What is a family office?
A family office is a private company that manages the wealth of one wealthy family (single-family office) or several families (multi-family office), including investments in private companies.
Do family offices invest in startups?
Many do, either directly, often alongside a VC lead, or as limited partners in venture funds. They tend to favour sectors close to the family's own business.
What is the difference between a single and a multi-family office?
A single-family office serves one family and can decide quickly. A multi-family office serves several families and usually has more process.
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