Raising capital from family offices
Family Office Investor Mandate: Tech, Fintech and Real Estate
Growth Capital, Tech, and Real Estate Family Office Investor Mandate
Family office principals, angel investors and new direct investors who want to define an investment thesis before making their first deals.
Summary
Matthew has spent about 20 years as an early-stage tech investor and 30 years in Silicon Valley. About half of those 20 years were with angel groups. He and his wife now run their own family office focused on fintech, blockchain and electronic commerce. They also invest together with other family offices. Richard C. Wilson interviews him about his mandate.
The talk also covers why one large angel group accepts real estate deals. Its founder, Randy, made his family wealth in real estate and wanted no limits on what members could show. Matthew then gives his advice for new direct investors. Take time to learn first, define a clear thesis, and plan for the different goals of each generation in the family.
Five points worth keeping
- Learn before you invest. Matthew says new investors should spend time meeting people and attending events. They should see what others are doing, but not assume they need to do the same.
- Write down your thesis. He advises clarifying what you are passionate about and why you invest. You should also decide whether you are active or passive, early or mid stage, and which sector fits you.
- Weak theses leave stranded deals. Matthew describes investors who get excited and place a few bets. Later they look back and find orphan investments that no longer match their thesis. Richard adds that a poor thesis can waste far more than $100,000.
- Plan for several generations. Goals can vary by generation. A first generation founder who made money in real estate may not care about clean energy or blockchain, but the children might. Matthew suggests a process for dialogue across generations.
- Philanthropy and investing are blurring. Matthew sees families moving some philanthropy money into targeted early-stage tech investing. Some also give one or two younger family members a pool to manage under the family's guidance.
Worth quoting
"The first thing is spend some time getting educated, attend the events, don't pull the trigger."
"Most of the mistakes happen where someone just wades in, gets excited, places a few bets, and then looks back later."
"I'm seeing a lot of families beginning to say, let's take some of the philanthropy pool money and put it into early-stage tech investing in a targeted way."
On the record
- Matthew has been an early-stage tech investor for about 20 years and has spent 30 years in Silicon Valley.
- The angel group described has 50 chapters that meet on a monthly cycle and about 4,000 members worldwide.
- By Matthew's estimate, deals shown at the group are about one-third health, one-third enterprise software and hardware, and about 20% real estate.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Growth Capital, Tech, and Real Estate Family Office Investor Mandate. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around pooled investment vehicles, family office structures and philanthropy and investing. Do not use AI to write your own legal agreements.
Related questions
- Do family offices co-invest alongside other investors?Yes, many family offices invest alongside other investors, and they often feel more comfortable when another respected investor is already in the deal.
- How do I find the decision maker at a family office?Start by meeting the family through advisors, events and the people who manage their investments.
- How long does a family office take to make a decision?There is no standard timeline, and I would not trust anyone who gives you one number.
Questions about this video
Why does the angel group in this talk include real estate deals?
Its founder, Randy, made his family wealth in real estate. His philosophy was that members could bring any good opportunity to the group, so there are no limits on what is shown.
What is Matthew's first piece of advice for new family office investors?
Take your time. Meet people, attend events and see what others are doing, but do not assume you need to copy them. Then clarify your own investment thesis.
How can family offices keep the next generation involved?
Matthew suggests having a process for dialogue across generations so the investing strategy stays relevant to both. Some families also give younger members a pool of money to manage under the family's guidance.
Put this into practice with the family office fit check. See all raising capital from family offices resources.
