Family offices raise bets on startups in $ 418 billion market

The world’s ultra-rich are increasingly investing in startups, both directly from their family offices and through venture capital funds, according to a study by SVB Capital and Campden Wealth.

Family offices accounted for 4.2% of the roughly 23,000 venture capital transactions globally this year through Aug.31, more than double their share a decade ago, the two companies said in a report. ‘investment.

Total capital invested in venture capital deals reached $ 418 billion this year at the end of August, surpassing the record high of $ 333 billion for all of 2020, according to the report.

Most of the 139 wealthy families and family offices surveyed this year for the research typically invest in startups through a mix of funds and direct deals, but more recently they are more on their own, he said. -he declares.

“There is no sign of slowing down,” the report said. Single-family offices surveyed managed an average of $ 989 million for one client, while those with multiple clients typically oversaw $ 1.9 billion.

Family offices have proliferated in recent years, thanks in large part to the rise of technology and finance. Family offices investing directly in startups include Mousse Partners, which manages the money of Chanel owners Alain and Gerard Wertheimer. Since early 2020, it has relied on the MessageBird communication platform, the catering company Butler Hospitality and the fitness company Tonal.

Some family offices have also created their own branches to focus on venture capital. Man Capital, the investment firm of the Egyptian billionaire Mansour family, established 1984 Ventures four years ago. The San Francisco-based company now has more than two dozen startups in its portfolio, including medical note transcription company Deepscribe and online clothing marketplace Curtsy, according to its website.

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