Founders should prioritize finding family office investors whose expertise aligns with their industry. Family offices, known for providing patient capital, invest heavily in startups, contributing to 27% of overall deal value in the first half of 2023, according to PwC.
However, family offices can be challenging for founders to locate and approach, as they often operate more discreetly than venture capitalists.
In a recent TechCrunch Disrupt panel, investors like Bruce Lee, CEO of Keebeck Wealth Management, emphasized the importance of sector alignment.
Lee noted that founders should seek family offices that have experience in the startup’s field, allowing them to offer strategic insight and value. Similarly, Eti Lazarian of Elle Family Office pointed out that family offices seek investments complementary to their own businesses, fostering collaboration.
Family offices stand out for their emotional commitment and patience, providing support beyond financial metrics. Unlike venture capitalists, who often focus on quick returns, family offices tend to support companies’ long-term success, offering founders more flexibility and breathing room.
For founders, industry events and conferences can be valuable networking opportunities to connect with family offices. Once engaged, family offices expect pitches that focus on realistic projections and metrics rather than ambitious promises, contrasting the VC approach of selling a vision for potential unicorn status.
