Want to try venture investing? It isn’t as easy as you might think

Venture investing might seem like a straightforward way of achieving bumper returns. But there is more to it than some family offices realise, demanding the right balance of skills, experience, and resources.
venture capital investing family office

What you need to know

  • Venture capital presents an attractive prospect for family offices, and many believe that they can increase returns by investing directly into startups
  • However, many family offices underestimate the amount of work, experience and expertise involved
  • Venture investors must generate deal flow through setting their strategy and building a reputation and brand through networking 
  • Effective due diligence is critical to minimise the risk of failure and ensure strategic alignment
  • Returns can only be realised through effective exit planning which demands the right contacts and expertise
  • Family offices must be aware of the complexities of VC and avoid underestimating the time, resources and effort required to be successful


Venture Capital Updated on January 19, 2024

In recent years, family offices have grown in absolute numbers and amassed substantial wealth, affording them the opportunity to explore new investment avenues beyond traditional assets. One area that has captured their interest is venture capital investing. With abundant and patient capital, family offices are drawn to the allure of investing directly in start-ups, on the promise of high returns. However, while venture investing may seem appealing on the surface, the reality is that it comes with its fair share of challenges and potential pitfalls.

The allure of venture capital

Venture capital presents an attractive prospect for family offices looking to diversify their investment portfolios and participate in the dynamic world of entrepreneurship. By targeting early-stage start-ups, they can access innovative ideas and disruptive technologies that have the potential to generate substantial returns over the long term. Many family offices are also attracted to the potential impact that these investments could have in solving challenges in traditional sectors, and therefore society. By taking a direct approach, they also hope to avoid the fees charged by traditional VC funds, potentially enhancing their overall returns.

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

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