Family Offices Continue to Invest in Venture Despite Macro Concerns

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Key takeaways

 
The current macro environment is causing Family Offices (FOs) to slow their venture investments. However, FOs expect to opportunistically grow their venture portfolios in 2022 given lower valuations. *

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%).