Raising capital from family offices
The Power of the Pivot: Family Offices and Founders in the AI Era
The Power of the Pivot: How Family Offices, Founders & Investors Must Adapt in the AI Era
Family office principals, first-time fund managers and founders who want to adapt to AI without losing the personal trust that investors look for.
Summary
The speaker is the managing director of a single family office in New York City, and the career began on Broadway. After spotting a travel problem on tour, the speaker built a business for touring professionals, sold it within 5 years, then started angel investing. Relationships grew from attending conferences with no agenda, no fund and no services to sell. That path is the example used for the idea of the pivot.
The talk uses a ballet pirouette as a model. A dancer fixes on one spot on the wall, and in business that spot is a core belief that stays fixed while everything else changes. The speaker says AI can save hours on pitches and investor discovery, but cannot make people believe in you. Founders and investors are urged to ask people who know them for honest feedback.
5 key takeaways
- Pick one fixed core principle. Like a dancer who spots one point on the wall, a business owner needs one core belief that does not change. The speaker's is a Winston Churchill quote about making a life by what we give, and the speaker says every investment and relationship goes back to it.
- Use AI, then spend the time well. The speaker believes AI can help with a pitch, help find the right investors and save staff time. The hours it frees should go to work AI cannot do.
- Trust and connection stay human. AI will not get anyone to believe in you or want to work with you. Showing up at conferences with no agenda built the trust that started the speaker's new career.
- Ask others for honest feedback. People close to you see things you cannot see in yourself. Ask what is special about you, what is bad, and what you could change.
- First funds sell on the person. A first fund has no track record, so investors have to decide whether they believe in the manager. The speaker says investing is betting, and that a bet is placed on a person.
Quotes from the session
"What it will not do is get anybody to believe in you, to connect with you, to want to work with you, to feel any kind of emotional intelligence."
"You have the power to personally say, I'm going to believe in that guy. I want to bet on that person. Investing is betting."
"We make a living by what we get, we make a life by what we give."
Facts and figures
- The speaker sold a touring accommodation business within 5 years and then began angel investing.
- The speaker's core belief is a Winston Churchill quote: we make a living by what we get, we make a life by what we give.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: The Power of the Pivot: How Family Offices, Founders & Investors Must Adapt in the AI Era. 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.
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.
- Do family offices invest in funds or only direct deals?Family offices do both.
- What is the difference between single and multi-family offices?A single family office works for one family and is built the way that family wants.
Questions about this video
What does the speaker mean by the power of the pivot?
It means changing when you need to while staying centered on one core belief. The speaker compares it to a ballet pirouette, where the dancer keeps coming back to one fixed spot.
Can AI replace people in investing and capital raising?
The speaker does not think so. AI can help with a pitch, finding the right investors and saving staff time, but it will not make anyone believe in or connect with you.
How can a first-time fund manager stand out without a track record?
The speaker says to rely on the power of you, since investors bet on a person. Asking people who know you well what is special about you helps you find what is different.
Put this into practice with the waterfall calculator. See all raising capital from family offices resources.
