Founders should seek sector alignment when looking for a family office investor
Family offices can be great sources of patient capital for startups, but finding the right family office investors can be tough.
Family offices invest a substantial amount of capital in startups each year. In the first half of 2023, 27% of overall startup deal value came from deals that included a family office investor, according to a recent report from PwC.
Interesting point about sector alignment with family offices. It makes sense that founders would benefit from investors who already understand their field. Do you think more family offices are becoming open to startups outside their core industries, or is sector alignment becoming even more crucial?
#askleo
Family offices always went into start ups. They are much smaller and dont have the same constraints as larger funds.
Well said.
Despite their prevalence in startup deals, family offices can be a mysterious class of investors for founders to navigate, as they are not nearly as public or as easy to find as VCs. Multiple family office investors said during a TechCrunch Disrupt panel that the easiest way to approach investors like themselves is to seek out family offices that have alignment with what a startup is building.
Bruce Lee, the founder and CEO of Keebeck Wealth Management, said that when founders are looking to get connected with family offices, they should seek out families that made their wealth in the sector the startup is building in.
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