Fundraising
What Investors Look for in a Startup
What early-stage investors really look for: traction, team, and a model that scales. It's about conviction, not just your deck.
June 27, 2025
Traditionally focused on preserving and growing generational wealth, many family office investors are now playing an increasingly important role in startup and venture funding, particularly in later seed and Series A rounds. Unlike venture capital funds, family offices often take a long-term view, seeking strategic or legacy-driven impact over fast returns. They can offer a valuable combination of capital, flexibility and alignment, but they are not always easy to access. Find out more about what startup founders should know about them.
What Is a Family Office?
A family office is a private wealth management firm that manages the assets of one or more ultra-high-net-worth families. Unlike institutional funds, family offices are not accountable to external LPs or quarterly return targets. Instead, they invest on behalf of a single family, in the case of a single family office (SFO), often with a focus on wealth preservation, long-term growth and intergenerational legacy.
While traditionally focused on real estate, public equities and private banking, family office investors are becoming more active in venture capital. Many now allocate part of their portfolio to direct startup investments, especially those aligned with the family’s interests or values. These might include sustainability, clean energy, fintech, health or socially responsible innovation.
What sets family offices apart is their investment philosophy. They tend to think in decades, not quarters. Rather than seeking rapid exits or hyper-growth, many are interested in businesses that will create durable value, align with their worldview or provide strategic insight for the next generation of decision-makers.
Who Are Family Offices and Why Do They Invest in Startups?
At their core, family offices are stewards of generational wealth. An SFO typically manages the assets of one ultra-high-net-worth family, with dedicated professionals handling everything from investment strategy to philanthropy. Multi-family offices (MFOs) serve several families, offering pooled resources and a shared advisory team.
As interest rates shift and public markets remain volatile, many family offices investing in startups are doing so for diversification and long-term returns. Some want access to innovation. Others see it as a way to shape the future by backing entrepreneurs aligned with their priorities.
Unlike VCs, family offices are less tied to fund cycles and more open to flexible timelines and structures. Some behave like micro-VCs. Others are more deliberate, focusing on relationships, founder integrity and strategic fit. These investors often want to understand not just your business plan but also your values, goals and how your company contributes to long-term change.
When Should Founders Consider Family Office Investment?
Family office investors are particularly well suited to startups raising between £250,000 and £2 million in later seed, bridge, or early Series A rounds. They tend to offer more flexibility than traditional venture capital, making them a good fit for businesses that are too large for angel funding but not yet ready for institutional capital.
This route is especially relevant for founders in capital-intensive or mission-driven sectors, such as clean energy, healthtech, agri-tech, or impact-focused consumer products. These investors often favour long-term partnerships and are comfortable with alternative models that align with strategic or legacy goals.
In a typical sequence, family office investment comes after angel or seed funds and may precede VC or growth equity rounds. The best time to approach is when your startup has achieved measurable traction, has a clear roadmap and can demonstrate values alignment alongside commercial potential.
How Do Family Office Investments Work?
Typically, family offices investing in startups operate with longer timelines and greater structural flexibility than institutional funds. Most investments are equity-based, but convertible notes, ASAs, or strategic partnership arrangements are also common. Ticket sizes often range from £250,000 to £1.5 million, though some offices can deploy significantly more.
Due diligence tends to focus on founder integrity, long-term goals and alignment with family values as much as on financial performance. Conversations are often personal and investment decisions may involve both professional managers and family members. This can extend the investment process, especially when consensus is required.
Access remains one of the most significant challenges. These investors rarely engage with unsolicited outreach and typically rely on introductions through trusted intermediaries, such as lawyers, wealth advisors, or specialist fundraising services. Because of this, many founders build relationships well in advance of an actual raise to increase their chances of success.
Pros and Cons of Family Office Investment
Engaging family office investors can offer a powerful mix of financial and strategic benefits. Their patient capital supports long-term growth without the intense scaling expectations of institutional VC. Many bring networks, industry knowledge and personal commitment that can add real value beyond funding.
Their flexibility in deal structure and timelines is often welcome. They may also be open to unconventional models, international operations or hybrid revenue streams outside the VC mainstream.
While these benefits make family offices attractive to many startups, there are also distinct challenges to consider. For example, access is often limited. Many operate privately and do not review unsolicited approaches. Due diligence can be informal or idiosyncratic. Internal family dynamics may also slow decision-making or shift the tone unexpectedly.
No two family offices are alike. What works with one may not with another. Founders should enter these relationships with patience and a willingness to invest time in mutual understanding.
Where to Find Family Offices
Finding family office investors is notoriously difficult. There is no central list or public database. Many offices prefer to stay under the radar. However, there are credible routes into this ecosystem.
Multi-family office platforms, such as Stonehage Fleming or LGT Wealth, for instance, manage investments for multiple families and sometimes have teams focused on private markets. Conferences and investor forums, particularly those focused on impact investing or future trends, can be productive spaces to meet decision-makers in person.
Advisors, lawyers and accountants often act as gatekeepers to family office capital, especially for more traditional or legacy-focused families. Founders with a strong values-driven proposition may also find support from specialist fundraising firms focused on social impact or sustainable innovation.
Finally, fundraising services such as those founders can identify, compare and apply to on ThatRound offer a structured route to discover family office investors based on sector, stage and ticket size. For founders who value transparency and alignment, ThatRound simplifies access to this highly complex market, providing an efficient way to shortlist and approach potential partners with confidence.
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