Post Written by Vasily Alekseenko

Over the last two weeks, we've hosted several events where family offices were frequently mentioned as a key fundraising strategy for founders, particularly first-generation family offices.

First-generation family offices are becoming more common. These families are often business owners who exited their businesses. They are younger, more willing to take risks at the idea stage, and eager to actively support the business.

Advantages of targeting family offices:

• Less stringent requirements for early-stage founders: They invest at the idea stage.

• Longer investment horizons: VCs aim for returns within about 5 years; family offices can afford a long-term game.

• Network opportunities: Having a good family office on your cap table can open many doors within their closed community.

• Quick decision-making: They can move super fast as they make decisions themselves using their own money.

Disadvantages:

• Closed circle: It’s very difficult to get in. Events for family offices are usually closed to founders (unless you pay to get in), but they are still on LinkedIn and can be approached with a super targeted, relevant, and personalized approach.

• Secrecy: Many family offices are private, making it hard to find details about them online. It can take a few meetings to understand whose money they manage. The lack of transparency creates opportunities for scammers. Always do your due diligence. If information is scarce, ask other founders. Communities like Anonymous Founders from Landscape VC are great for checking and verifying names of VCs, family offices, and HNWIs.

How to find them:

• Crunchbase: Search for recently closed deals in your sector to identify relevant family offices with available funds.

• LinkedIn: Family offices may not have websites, but their personnel are usually on LinkedIn and approachable if your approach is relevant. Research each person thoroughly.

• Events: While events for family offices are typically closed to founders unless you pay to pitch, attending for networking can still be worthwhile. These events can open doors to further discussions or introductions, but keep your funding expectations realistic.

Happy fundraising!

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