Family offices are reshaping the venture capital landscape. Once primarily focused on preserving wealth for personal investors, these entities are now actively investing in startups, bringing patient capital, operational expertise, and a long-term perspective that traditional VCs usually can not offer.
A significant shift is occurring as entrepreneurs establish their own family offices post-liquidity events, meaning after they cash-out when theis startup or company receives investments. According to UBS’s Global Entrepreneur Report 2025, 31% of US entrepreneurs plan to set up family offices, signaling a move towards strategic wealth management and future investments.
Family offices offer the advantage of patient capital, free from the constraints of specific investment timelines or external pressure. This flexibility benefits startups seeking sustainable growth over quick exits. UBS’s findings indicate that 74% of entrepreneurs intend to maintain their current risk levels, reflecting a long-term investment approach.
Beyond funding, family offices contribute operational expertise and industry knowledge too. Their involvement often includes providing startups with critical resources and networks, enhancing the value beyond mere capital infusion. It’s what investors and entrepreneurs call “smart money” within the innovation ecosystem.
The role of family offices is evolving to include business incubation, offering infrastructure that lowers barriers to entrepreneurship. This support allows new ventures to focus on product development and market entry without the immediate need to build out administrative teams.
Risks and opportunities
However, this active investment role brings governance challenges. UBS reports that only 55% of surveyed companies have clear succession plans, highlighting the need for family offices to establish robust governance frameworks to balance entrepreneurial risk-taking with wealth preservation.
Traditional venture capitalists face both challenges and opportunities with the rise of family offices in venture investing. Collaborative models, such as co-investment structures and sector-specific partnerships, can leverage the strengths of both parties, combining family offices’ patient capital and operational resources with VCs’ deal flow and portfolio management expertise.
To infinity and beyond
Looking ahead, the intersection of family offices and entrepreneurship is expected to deepen. Trends to watch include the professionalization of family office investment teams, the development of new investment structures tailored for family offices, and the emergence of specialized service providers.
For venture capitalists, adapting to this evolving landscape involves recognizing the unique value propositions of family offices and exploring collaborative opportunities that align with long-term investment horizons and shared strategic goals. To entrepreneurs, it’s almost all good news.
