Despite tougher economic conditions, family offices continue to embrace venture investing, with many saying they will increase their investment in the asset class in the future, according to a new report.
Family Capital and Octopus Investments have produced a major new report on the interaction between family offices and the venture sector, which shows a lasting and strong relationship. The 33-page report, which surveyed the opinions of more than 80 single-family offices worldwide and used the FamCap Analytics database, showed family offices are actually increasing their commitment to the venture sector – both in terms of funds and directly.
Key findings included:
- In 2022, despite an economic slowdown in most of the major economies, 58% of family offices increased venture allocations, and only 18% reduced them
- 16% of all deals – both direct and in funds – were done by family offices in 2021
- Family offices allocated – both indirectly and directly – as much as 26% of their portfolios to venture capital
- 82% of family offices said life sciences were among their top choices for venture investing
- Cryptocurrencies are the least favoured investment option
- More than half of family offices saw seed stage as the most popular category of venture investing
- European family offices are particularly driving venture investing in their home markets
- 35% of family offices had explored the secondary market for venture investing
- 63% of family offices allocate between $50,000 to $1 million to direct deals, but allocate more to funds
- North America was viewed as the most popular place to invest when it comes to venture, followed by Europe
The report includes case studies and is the most in-depth analysis of the relationship between family offices and the venture sector.
To download a copy of the report, please click here.