Family offices are private wealth management structures that manage, protect and grow the assets of high-net-worth families over the long term. In addition to pure investment management, they often also undertake strategic tasks such as tax planning, succession planning and legal advice.
A basic distinction is made between two types of family offices:
- Single Family Office (SFO): manages the assets of a single family
- Multi-Family Office (MFO): looks after several high-net-worth families at the same time
Family offices generally pursue a long-term investment strategy and thus differ significantly from traditional venture capital firms.
Family offices are of particular interest to start-ups because they often act as alternative investors and have different priorities to traditional venture capital investors.
Typical characteristics of family office investments:
- long-term investment horizon
- lower exit pressure compared with VC funds
- flexible terms and conditions that can be negotiated on a case-by-case basis
- Focus on sustainable value creation rather than short-term returns
- decision-making structures that are often characterised by an entrepreneurial approach
Family offices offer several advantages for start-ups:
- Access to stable and patient capital
- strategic support and experience from other organisations
- Access to exclusive networks
- potential partnerships that go beyond mere funding
- Support with international expansion or scaling
At the same time, family offices are selective in their investment decisions and often invest only in areas that align with their own strategy or sector expertise.
For start-ups, partnering with family offices can be a valuable complement to traditional VC investors, particularly when the focus is on long-term growth and stability. innoWerft supports founders in identifying suitable types of investors, developing funding strategies and gaining access to relevant investors such as family offices.