How founders of tech companies build up mighty single family offices

This is why it makes sense for tech entrepreneurs and successful founders to set up a single family office

Successful, globally active start-ups from the digital industry have been attracting increasing attention for several years now. Venture capital funds are being set up to support the next global player on its way to market leadership. As part of an exit, not only the venture capitalists earn large sums, but also the founders of the tech start-ups. The question that then arises for most of the successful entrepreneurs is how they can secure and invest their assets. Independent capital investment only makes sense up to a certain point. In addition, successful founders often rely on financial experts. While classic asset managers are well suited to receive professional help with their investment strategy, single family offices have a very special charm. This is where the needs and requirements of the entrepreneurs can best be addressed and it is possible to create their own investment profile.Two famous examples of Single Family Offices initiated by former founders are Omidyar Network (eBay founder Pierre Omidyar) and Bezos Expeditions (Amazon founder Jeff Bezos).

Based on our extensive European database: the investment focus of single family offices from (famous) founders

Of course, many tech founders remain true to themselves by supporting young start-ups. This is where they can contribute their expertise and make valuable contacts available to help build up the company. But most successful entrepreneurs also leave their ancestral areas and invest in completely foreign industries. Private equity and real estate investments play a particularly important role here. It is also striking that many Tech founders support social projects and promote companies that are committed to sustainability. Just think of Bill and Melinda Gates, who set up one of the most important foundations in the world. With familyofficehub we regularly report on the investments of relevant family offices from all over the world. So it’s worth following our news.

Approaching and convincing the SFO of successful founders

Our clients are often faced with the challenge of successfully addressing single family offices. This applies equally to start-ups, advisors, fund managers and co-investors. In the case of the investment vehicles of successful tech founders, some strategies and approaches require special consideration. First of all, you should find out in which asset classes the SFO invests. A founder from the digital industry does not necessarily have to be the right partner for your next financing round. Quite the opposite: the focus may be entirely on the real estate sector or the capital market. In these cases you will not be successful with the pitch of your startup. Secondly, successful tech founders are usually very well networked in the scene and attach great importance to recommendations. So you will be extraordinarily successful when approaching the entrepreneurs through a personal contact. Thirdly, you should attract attention with your concern and stand out from the crowd. The Single Family Offices of successful entrepreneurs are contacted very frequently and select the requests according to strict guidelines. We therefore recommend that you select the largest European single family offices from our list with a great deal of tact and sensitivity and address them individually.

Picture source: Clark Tibbs