Family Offices Continue to Invest in Venture Despite Macro Concerns
Key takeaways
01
FO participation in venture continues to grow
Although FOs are slowing deployment of capital into venture funds and startups, their participation in venture continues to grow (FOs were in 5% of all venture deals in 2021).
02
FOs have a strong focus on North American funds
Half of North American FOs expect US-based emerging managers to produce their highest returns, which may explain why these FOs allocate substantially more of their investments (70%) to North America than the rest of the world (24%).
03
Sector trends differ across geographies
North American FOs are heavily targeting life sciences and healthcare (20%) and enterprise software (18%). The rest of the world has a more balanced approach across all sectors, with fintech leading (18%) and frontier technology lagging (9%).
Report highlights
Source: PitchBook and SVB analysis.
FOs invested in 5% of direct venture deals in 2021
FOs invested in over 2,100 direct venture deals in 2021 (5% of global deals) versus 1.9% in 2011, a 250%+ increase. Greater participation has resulted in better access to deal flow.
North American FOs expect to invest primarily in North America
FOs outside North America favor Europe (28% of their venture portfolio) and North America (24%), while FOs based in North America expect to invest 70% of their venture portfolio in North America.
Source: SVB / Campden Wealth Family Offices Investing in Venture Capital Survey 2021.
Source: SVB / Campden Wealth Family Offices Investing in Venture Capital Survey 2021.
Family offices are investing in life sciences and enterprise software
Prominent sector allocations for North American FOs include life sciences and healthcare (20%) and enterprise software (18%). In the rest of the world, FOs are allocating 18% of their portfolios to the fintech sector.
Family offices expect the highest returns from US-based emerging managers
Globally, FOs expect, in the next decade, their highest returns from US-based emerging managers (33%), emerging managers outside the US (28%) and US-based established brand managers (25%).
Source: The SVB / Campden Wealth Family Offices Investing in Venture Capital Survey 2020
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Co-authored by Campden Wealth and SVB Capital
The report was developed by Campden Wealth in partnership with SVB Capital.
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