How does a family office build a venture capital portfolio?
Short answer: Isabelle described finding a venture partner with domain expertise, reviewing which industries the office picked well, and supplementing its own capital with outside investors.
In a talk on Richard C. Wilson's channel, Isabelle of Nathan Family Office described how the office expanded from real estate into venture capital.
Finding a domain expert
Isabelle said the family office wanted to enter venture capital but lacked expertise in that area, so it looked for the right partner. She said building that relationship took time. (at 2:22)
Reviewing where picks worked
Isabelle said the office considers all types of tech, then reviews which industries it has picked well and where it has been less successful. She said it doubles down where it has the main expertise. (at 3:10)
Adding outside capital
Isabelle said the office decided to supplement its own capital with outside investors and start its venture firm, Expert Dojo. (at 3:49)
Reviewing follow-on funding
Isabelle said Expert Dojo had invested in 300 companies, most of which raised follow on capital from outside investors who became co-investors. She said the initial investment had grown by five or 8x. (at 4:15)
"So first of all find the right partner with the domain expertise that we did not have"
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Frequently asked questions
How does a family office build a venture capital portfolio?
Isabelle described finding a venture partner with domain expertise, reviewing which industries the office picked well, and supplementing its own capital with outside investors.
Where did the family's wealth come from?
Isabelle said it came from real estate development and described the office as first-generation money based in Los Angeles.
How did the office form its venture partnership?
Isabelle said an introduction came through the office's banking partner, then it took more than 20 meetings to establish the partnership.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.