They say money can’t buy you happiness. But for the global clan of family offices, it can buy you something almost as good: a front-row seat in the venture capital circus. The seat may be a little creaky, the popcorn overpriced, and the stunts a bit risky – but these are the stories you will share at the dinner table.

Let’s start with the empirical facts. According to Campden Wealth, about 39% of European family offices say they intend to increase their allocation to venture capital. Meanwhile, Goldman Sachs finds that nearly 40% of surveyed family offices plan to boost private-equity (including venture) exposure. This move towards venture capital is not a passing fad; it’s here to stay. Here are some of the main reasons why family offices are getting involved in venture capital activities today.

To grow the “innovation” muscle

Family offices increasingly want to be part of the breakthroughs in climate-tech, AI, fintech, healthcare, and digital transformation. As the UBS Global Family Office Report (2025) puts it, families are “keen to understand the promise of a range of emerging technologies.”

I know this from my own experience. Recently, a Swiss-based family office told me they’d invested in an early-stage green-hydrogen business mainly so that their next generation could say they were doing “something meaningful” beyond real estate. They also liked the idea of a board meeting in which the slides showed the emissions saved rather than just the square metres that had been developed.

To learn and build up the ‘family office experience’

Another thing pushing family offices towards venture capital is that families increasingly want to learn how venture investing works. Unlike passive big-cap stocks, venture invites hands-on, relationship-rich involvement: coffees with founders, chats with the board, term-sheet wrangling. It becomes a sandpit for the family’s next generation to learn the ropes.

In fact, one London-based family office recently brought in its 26-year-old daughter as “VP of Innovation” (her title) so she could steward their VC portfolio. The idea wasn’t just about getting returns – it was about building internal instrument-knowledge and next-gen credibility.

To expand networks, friendships and experience the “club-deal” factor

Being in venture means you’re part of the club. You meet founders, co-invest with other families or VCs and swap deal-flow. That social dimension – the lunch that might turn into a co-investment, the “founder-friendship” that leads to early access – is non-trivial.

It’s not unheard of that “friend-of-the-family” startup founders sometimes invite members of a family office to their villas in, say, Ibiza, after fundraising rounds. Some founders even became unofficial “tech gurus” for family offices. Networking plus a luxury vacation, that’s some ROI.

To experiment and explore options

Family offices often have the luxury of time and capital and can treat a small piece of the portfolio as experimental. Invest in a nascent space, accept illiquidity, see what happens – and if it sinks, no one blinks(?)

As the Campden report notes, these are “patient, multi-generational” pools of capital. One example is a family office based in the Middle East that is making modest bets on digital therapeutics, partly “just because it sounded fun” and gives them credibility with younger family members.

To build on existing operating business experience

Many family offices originate from operating businesses. Sometimes investing in venture means leveraging that business expertise and tapping into sectors in which the family already has domain knowledge.

If the family runs logistics, maybe they back supply-chain software. If they work in real estate, maybe they back prop-tech. This kind of strategic fit adds value and reduces risk (relatively speaking). One US family office told me their VC investments were skewed toward mobility/transport because their founding business was trucking and therefore felt they had “the inside lane” in this industry.

To support innovation and drive impact

Many families view venture as a vehicle to support innovation, social good, or impact – while still seeking returns. From technological breakthroughs to sustainability solutions to next-gen health: venture is fertile ground.

The Campden report shows that there is a large interest in sustainable investing among family offices. One European family office invested in a female-founder-led startup building clean-water infrastructure in India. They say: we may or may not make 10x, but we’ll have ‘done something right’.

To get financial returns (yes, still)

Last but not least, let’s not hide what is still a main driver that venture capital offers the possibility – if not the guarantee – of outsized returns. The SVB/Campden report found that family offices had increased VC allocations over the previous decade, citing “strong historical returns.”

Moreover, a Silicon Valley-based single-family office told me: “We expect only 20-30% of our VC bets to be winners – but when one hits, it’s a whale.” That “whale” expectation is baked into the family office narrative.

Things to consider before writing a cheque

Ready to get started? Before committing capital, your family office needs to ensure that your investment decisions are guided as much by values and legacy as by financial return. Each cheque represents more than capital deployment – it’s an expression of the family’s long-term vision and identity.

The first question you need to ask is about time horizon: does the opportunity align with your family’s investment outlook – be it five, ten, or fifteen years? Family wealth is inherently patient, but alignment is essential to avoid liquidity mismatches. Next, you should evaluate your understanding of the sector. If the investment lies outside your expertise, you need to believe you can bridge that gap through advisors, hired talent, or trusted partners.

Then come the terms and the structure. You’ll need to consider fees, carried interest, governance rights, and the overall alignment between investors and founders or fund managers. Families seek clarity and fairness, prioritising relationships where incentives are transparent and shared.

It’s vital to assess the founding venture team’s calibre: their track record, resilience, and integrity often outweigh the product itself in early-stage decisions. Family offices should also consider the network surrounding the deal – which co-investors, clubs, or syndicates are involved – since these relationships can enhance access, deal flow, and follow-on support.

Final thoughts before the ink dries

Beyond numbers, you should also ask how the opportunity fits within your family narrative and governance. Does it align with your family’s identity or values, and will it engage the next generation in stewardship and innovation?

Risk planning follows. This is when you need to examine downside scenarios such as illiquidity, dilution, and exit paths. Families often prefer knowing how capital can be protected – or gracefully lost. Finally, you should consider diversification and whether this investment offers exposure beyond your core business, industry, or geography. Ultimately, before opening the cheque-book, family offices should weigh not just financial potential but the strategic, emotional, and legacy implications of every decision.

Family offices around the world are stepping into venture capital for reasons that go far beyond chasing the next unicorn. Venture investing means that they can build the innovation muscle, educate the next generation, deepen networks, explore new opportunities, and drive impact, all while keeping the door open to outsized returns. But the real differentiator isn’t simply writing the cheque; it’s doing so in a way that shapes your legacy – financially, intellectually, and culturally.

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