Our answer on this question: yes, family offices definitively invest in startups, but that’s a rather new development. If you imagine “old money” family offices, it probably wouldn’t strike your mind that they are investing in startups, but nowadays more and more family investment groups are allocating an increasing part of their assets in venture capital. There are multiple reasons for this trend.
One of them is that through the global low-interest rate environment investors are looking for alternative asset classes which are still bringing adequate returns. Especially in Europe, which is known for it’s underfinancing of young companies, there are plenty of promising investment opportunities. Often the family investment groups are active in the industry of their family business. This makes sense, because the family knowledge and network can be transferred.
Another reason is that in many families a change of generations is taking place. The heirs are taking over the the control of the family investment group, thereby often changing the investment style and approach.
If you are interested in real-world examples of family offices investing in startups, we introduce 5 German family offices that are active as venture capital investors. Click here and learn about five venture capital funds that are backed by wealthy German families.
Picture Source: Venveo
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