Family offices are a great source for securing an investment in a venture fund or in an early stage company. They generally have more risk tolerance than individual angels and more dry powder to back up their investment in future rounds. Many won’t invest unless it is alongside a venture capital fund but it is still a good idea to include family offices in your fundraising strategy.
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Family Offices Increase Allocations to Venture Capital
Throughout the last decade, wealthy families have gravitated away from hedge funds to private investments, including private equity and venture capital. A big reason is that entrepreneurs who are comfortable with risk, and evaluating management teams and the potential success or failure of a business idea, are usually the reason a family became wealthy. And these families are drawn to the potential private investments offer for high returns.
With intangible assets representing over 90% of an AI company’s value, an effective intellectual property strategy is essential to...