While Family Offices Slow Venture Investments, Certain Sectors Remain Strong
Key takeaways
01
Macroeconomic uncertainty has slowed venture investments
FO investment in venture dropped 55% from 2021, including a 60% drop in late-stage investments and a 44% drop in early-stage rounds.
02
Certain sectors remain strong
FO investments in technology and healthcare innovation have remained relatively strong, particularly in the areas of alternative care and companies that use AI/machine learning technology to aid in drug discovery.
03
Family offices are adjusting their portfolios to navigate volatile markets
FOs are more likely to re-up with funds already in their portfolio and established funds rather than seeking out new managers.
Report highlights
FO investments in venture dropped 55% from 2021
After a strong 2021 during which investment levels hit nearly $137 billion, FO venture investments fell to approximately $60 billion in 2022, matching 2020 levels.
FO investment in late- and early-stage VC dropped year over year
FOs reduced their investments in late-stage VC by 60% from 2021 to 2022. Early-stage investments declined less steeply, by 44% year over year.
Family offices are investing in life sciences, enterprise software and other sectors
Investments in technology and healthcare trends remain a bright spot for FO portfolios. Blockchain solutions and healthcare innovations are key areas of focus.
Family offices are making adjustments to navigate current volatility
FOs are upgrading their venture fund portfolios to match the current macro environment. Notably, they are demonstrating a bias toward existing investments and established funds versus seeking out new managers.
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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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* Data for this report was collected from Family Offices (FOs) in Q3 2021. Several FOs were interviewed in November 2022 to provide additional context in light of changing market conditions.
This material including, without limitation, to the statistical information herein, is provided for informational purposes only. The material is based in part on information from third-party sources that we believe to be reliable, but which have not been independently verified by us, and for this reason, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction.
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