Family Offices Have Quietly Become Startup Funding Powerhouses
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Family offices (FOs) primarily operate as private wealth management firms for ultra-high-net-worth clients.
It’s a business model that has paid off for years. FOs around the globe currently manage $5.5 trillion in assets. And — as Avestix shared last month — the family office trajectory is expected to grow 67 percent during the next five years, meaning FOs will manage as much as $9.5 trillion.
Armed with this kind of financial muscle, it is understandable that, increasingly, many FOs have also emerged as strategic entrepreneurial partners, helping to fund founders hoping to gain footing in the market.
Last year, this trend captured the attention of PwC, which found that “family offices are major players in the global market for investment in startups.”
According to PwC, nearly one-third — 32.5 percent — of the total capital invested in startups in 2022 came from family offices. FO-backed deals that year accounted for more than 10 percent of all startup investments around the world.
Family offices have been partnering with entrepreneurs for years. PwC examined investment data for more than 6,500 FOs worldwide dating back to 2012 and found that family office startup investments climbed steadily year-over-year for nearly a decade, peaking in 2021 when they funded the launch of nearly 6,100 startups.
However, as of the following year, FO's enthusiasm for startups tapered off.
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About Susan Lindeque
Susan is a visionary entrepreneur, futurist, and thought leader with over 35 years of experience in business, finance, investments, real estate, wealth creation, and technologies.
Her Massive Transformation Purpose is:
“Working to Inspire Abundance for Humanity & Invest in Exponential Technologies.”
She is the founder and CEO of Avestix, a global asset, investment, advisory, and technology company focusing on public securities, next-venture capital, commercial real estate, and alternative assets based on ESG principles.
Susan is passionate about nurturing innovation, transformation, and disruption in the new decentralized economy. She leverages her extensive network and deep industry expertise to select and empower exponential technologies that will disrupt, transform, and impact industries.
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