Family offices have been making quiet yet significant moves in the venture capital space. Unlike traditional VCs, they operate on their own timelines, making decisions based on strategy, conviction, and long-term value rather than short-term fund cycles. That flexibility allows them to invest in businesses that might take longer to mature—but also means they have a very different approach to risk and returns.

At a recent panel discussion featuring Vishal Harnal of 500 Global (LinkedIn), Edoardo Collevecchio of Oppenheimer Generations (LinkedIn), and Rishika Chandan of Venturi Partners (LinkedIn), moderated by Natasha Raina (LinkedIn), industry experts unpacked how family offices engage with venture investing, where they align with VCs, and what founders need to know when approaching them.

Here’s what we learned.

Family Offices as Patient Capital: Playing the Long Game

Family offices aren’t under pressure to return capital to LPs within a strict time frame, so they can afford to take their time. That means:

They back long-term, high-conviction investments, often in industries that need time to develop.
They don’t chase quick exits, but that doesn’t mean they’re risk-tolerant—they prioritize capital preservation over high-risk, high-reward plays.
They prefer strong fundamentals, clear unit economics, and a path to profitability over hype-driven valuations.

For founders, this means that securing investment from a family office isn’t about selling a vision of explosive short-term growth—it’s about proving long-term, sustainable traction.

How Family Offices and VCs Co-Exist

Family offices and venture firms don’t compete—they complement each other in different ways:

Many family offices invest in startups through co-investment structures or as LPs in VC funds, getting exposure to high-growth companies while maintaining a diversified portfolio.
Unlike VCs, family offices don’t always push for exits. Some prefer holding onto investments longer, while others focus on steady-growth businesses over unicorn-or-bust bets.
Founders need to be mindful of these differences—what works in a VC pitch won’t necessarily work for a family office. Understanding their investment style is key.

Family Offices in Emerging Markets: A Different Approach

In the U.S. and Europe, many family offices have institutionalized investment teams that function similarly to VC or private equity firms. But in emerging markets—Southeast Asia, India, Africa—it’s often a more experimental, hands-on approach.

Many family offices start with direct investments in sectors they understand, then transition to fund investments or structured VC partnerships over time.
Since they don’t always have the internal teams to vet and support startups, their capital deployment may be slower—but once they commit, they’re in for the long haul.
Founders in these regions need to educate investors on the startup landscape while demonstrating clear financial discipline and growth potential.

What Sectors Are Family Offices Watching?

Unlike the venture world, where AI is dominating conversations, family offices are looking across a broader range of industries:

Consumer Growth in Asia: The expanding middle class in India and Southeast Asia is driving new demand, but investors want to see profitability, not just scale.
Strategic Investments in China: While many institutional investors are pulling out, some family offices see undervalued opportunities, betting on a long-term market rebound.

For Founders: How to Approach Family Offices

Pitching a family office isn’t like pitching a VC. They don’t have a one-size-fits-all investment strategy, which means founders need to do their homework before reaching out.

Key Takeaways for Founders:

Not all family offices operate the same way. Some act like micro-VCs, some invest sporadically, and others prefer to invest through funds. Know who you’re talking to.
Long-term alignment matters. Family offices might be more patient, but they still need to see a clear business case and path to returns.
Financial discipline is key. These investors don’t buy into hype—they want strong unit economics and a realistic profitability roadmap.

2024 Outlook: Where Is the Market Headed?

There’s cautious optimism that 2024 will see a rebound in venture investments and M&A activity, but macroeconomic uncertainty lingers. Many VC funds from a decade ago are nearing the end of their cycles, which means forced exits and secondary sales could create fresh investment opportunities.

For family offices, this could be a moment to step in with patient capital at a time when startups are reassessing their fundraising strategies. Founders who understand both VC and family office capital will have an edge.

Final Thoughts

Family offices aren’t here to replace VCs, but they’re offering an alternative path for startups that prioritize long-term, sustainable growth over quick flips.

For founders, the key takeaway is this: family offices value strategic alignment, financial discipline, and businesses built for resilience. If you can prove that, you won’t just find an investor—you’ll find a long-term partner.

What Founders Need to Know About Raising from Family Offices