If you’re on the hunt for funding, a strong option to consider is the family office space. Family offices control capital and conduct investments for either a single high-net-worth family (single-family office) or group of high-net-worth families (multi-family office). These groups often operate under the radar, but once a greater understanding of how they work and their criteria, family offices can hold the key for the capital you’re seeking. Let's have a closer look.
According to the Family Office Club, there are currently more than 3,000 family offices in the United States alone, and in recent years, these offices have seen an uptick in investments into an array of alternatives.
Although family offices (especially single-family offices) tend to operate under the radar and keep their investment criteria and activities relatively private, referrals, networking, and/or conferences may help you get your foot in the door. Many times, family offices seek out companies whose values, experience, and philosophy align closely with the family. Understanding how the wealth was created and its origin can be a key indicator and invaluable into the future investment interest of a particular group.
The process of sourcing and identifying family offices can be incredibly difficult. Thanks to their low-profile nature, many family offices simply do not have an established Internet footprint or even a published phone number. “The reality is, the family office landscape is growing incredibly quickly and becoming more sophisticated by the year. The need for an ever moving and intuitive data set in the family office space has never been greater - in a nutshell, that’s exactly what we do.” says Russ D’Argento, CEO & Founder of the FINTRX Family Office Platform. Running Google searches and LinkedIn can be useful in some capacity, but it’s time consuming to comb through and thin on data. Static family office excel lists available for purchase often have very lean or outdated contact information. “Like anything else when it comes to raising capital and securing an investment, information is power. FINTRX provides that information to you - spruced up and on a platter.”
The benefits, should a family office decide to infuse capital into your business, are enormous. They include the potential for connections and networking, ability to take advantage of the markets even when conditions are less than favorable, greater patience than institutional investors or private equity firms, and even long-term mentorship for your business. We strongly advise you tap this often overlooked resource - happy capital raising!