Raising capital from family offices
How Family Offices and Angels Source Off-Market Deals
How Family Offices and Angel Investors source exclusive, off-market deals | Family Office Investo...
Founders and emerging fund managers who want to understand how family offices, angel groups and accelerators find deals and think about terms.
What you will hear
Blue Startups receives about 600 applications for every session and takes about 10 companies, and its best deals come from referrals. That detail sets the tone for a panel on direct and co-investment opportunities. Speakers from Raymond James, Blue Startups, Hawaii Angels and a family trust describe the deals they want, from tourism tech and sustainability software to late stage growth companies and uncorrelated assets.
On deal origination, the panelists point to trusted relationships, referral networks and seeing many deals so that judgment improves. On terms, they share how they think about staging an investment and about special arrangements for investors who bring strategic value. One panelist notes that individual angels often take the terms offered, while an angel group may have more influence in a round. Many sponsors talk to a securities attorney about how to structure terms like these.
What stood out
- Referrals drive the best deals. Blue Startups relies on a network of hundreds of founders, 250 mentors and 400 investors. Its best deals come from referrals. It has built this network over 12 years.
- Trust in the people comes first. One investor says deal flow comes from getting to know people and people they trust. They do not invest where they do not trust the individuals running the deal.
- Volume builds better judgment. A panelist explains that seeing 300 or 6,000 deals makes an investor a better judge than seeing one. This matters after an exit, when friends bring many requests and the pitch may be chosen by relationship rather than merit.
- Terms can flex for strategic value. Raymond James will consider adjusting terms if a partner furthers the relationship or brings distribution or sector knowledge. Another panelist says a family office that supplies 20% of a round and has 30 years in the niche can help the rest of the money arrive quickly.
- Protections and staged investing. One investor describes using added protections so the team has more say if a company struggles. The same investor splits placements into a first and second round, partly to raise the value of the first investment. Many sponsors talk to a securities attorney about how to structure arrangements like these.
In their words
"Especially after someone has a big exit, everybody who knows them comes to them and asks for money. Then it becomes investing based on who knows them, maybe, versus what's a good investment."
"If you've looked at 300 or 6,000, you can be a pretty good judge, even if 5 years ago you had never tasted one, right?."
"We like late stage growth companies where there's some visibility to an exit either through a strategic or an IPO."
From the source
- Blue Startups gets about 600 applications for every session and takes about 10 companies.
- One family trust keeps 90% of its money in conservative investments, 5% in cash flowing expansion companies and 5% in startups.
- Hawaii Angels has invested in 130 early stage companies, and its group recently led a round in a Utah irrigation company with board seats.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How Family Offices and Angel Investors source exclusive, off-market deals | Family Office Investo.... 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 investment term structuring, investor protections and round and note structures. Do not use AI to write your own legal agreements.
Related questions
- 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.
- What deal sizes do family offices typically write?There is no single typical size.
- 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
How do these investors find their best deals?
The panelists name trusted relationships and referral networks. Blue Startups says its best deals come from referrals, and another investor says deal flow comes from getting to know people they trust.
What kind of deals does Raymond James look for?
Russell says Raymond James likes late stage growth companies with visibility to an exit through a strategic buyer or an IPO. It will also consider asymmetric assets that add diversification to a portfolio. Russell describes its clients as institutional investors, typically with at least $50 million.
Why might an investor accept different terms?
Panelists say terms may flex when a partner furthers the relationship, brings distribution, or adds underwriting capacity and sector knowledge. Blue Startups also keeps special terms because it provides services and network access along with cash.
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