A synergistic future for family offices and venture capital

In recent years, the investment landscape has witnessed a paradigm shift driven by a global economic downturn and evolving market dynamics. This change is particularly evident in the interplay between family offices and Venture Capital (VC) - sectors traditionally perceived as distinct in their approaches and objectives. Simple Expert Kjartan Rist, who’s spent the last 20 years focusing on the technology sector as a founder, advisor, board member and investor, shares his insight on the synergies between the two worlds.
synergy venture capital

What you need to know

  • In the changing investment landscape, venture capital is emerging as a crucial and strategic asset class.
  • Family offices must shift their perspective to view venture capital as a long-term strategic opportunity, not just a short-term gamble.
  • The partnership between family offices and venture capital has the potential to redefine investment approaches for a future where economic prosperity and societal impact are interconnected.

Venture Capital Updated on January 11, 2024

While family offices have historically focused on wealth management and preservation, there is an emerging trend of these entities increasingly venturing into the VC space. This shift signifies an acknowledgement of the impact, potentially high returns and diversification that venture investments offer, especially in a landscape marred by economic uncertainties.

A comparative look at the US and Europe

The US has long seen the involvement of family offices in VC, but now Europe is beginning to follow suit. This trend underlines a global acceptance of venture capital as a viable asset class for wealth preservation and growth. It also reflects a broader understanding that innovation, often driven by entrepreneurs, plays a crucial role in addressing global challenges. Venture capital stands at the forefront of identifying and supporting these change-makers, leveraging its network, experience, and hands-on approach to foster breakthroughs in various sectors.

The crucial role of venture capital amidst challenges

Venture capital is increasingly recognised for its pivotal role in selecting, nurturing, and mentoring talented entrepreneurs. In times of economic flux, VC’s involvement becomes even more vital for the growth, success and even survival of innovative startups. The current economic scenario, characterised by an economic downturn, presents a unique opportunity for FOs to deploy capital. This approach aligns with the contrarian nature of venture investing, where downturns often unearth hidden opportunities.

About the Authors

Kjartan Rist

Kjartan Rist

Venture capital investing

Kjartan is a Founding Partner of Concentric, the London & Copenhagen-based venture capital firm. He helps family offices gain a better understanding of VC investments and how to allocate towards this.

Connect with Kjartan Rist

Create your free account to continue reading this insight.

Join our community and become a Simple member today.
Not yet a member?

Sign up for a free account by clicking on the link below.

Register New Account