How Family Offices Evaluate Fundraising Opportunities

In a presentation introduced by Richard C. Wilson, a second-generation family office investor discusses fundraising and investment cases.

A second-generation family office investor presents cases involving drone companies and explains how the office approaches investment and fundraising. The talk covers how founders can prepare for a family office raise, including valuation, due diligence and investor communication. An audience exercise considers an early-stage raise, and Richard C. Wilson closes with remarks about Family Office Club.

In this video: Family office investor (Second-generation family office investor), Richard C. Wilson (Host)

What they said

1. The speaker on investor fit. A strategic investor's name and relationships can open doors, the speaker says. Blake Resnick's connection with Sam Altman led to introductions to Alexander Wang, Index Ventures and Motorola. The speaker says founders should consider what they can bring a family office beyond a check.
2. The speaker on strategic capabilities. An early investment in a European drone company gave the family office rights to its technology, which it brought to the United States for manufacturing. The speaker says strategic money and partnerships can add value beyond capital.
3. The speaker on fundraising milestones. In an audience exercise, the speaker considers a $3 million raise at a $25 million valuation, with $1.5 million in founder capital. She says that valuation could set expectations above $40 million for the next round, so founders should tie the raise to a milestone that supports it.
4. The speaker on investor research. The speaker recommends learning what a family office has invested in and where it sees opportunity before making contact. She says introductions through conferences or LinkedIn work better than mass pitches.
5. The speaker on candor and trust. The speaker says founders should disclose problems because hidden issues can damage their reputation with investors. She cautions that fake urgency can make investors suspect information is being withheld.

In their words

"My dad was in Switzerland focusing primarily on oil and gas and different natural resources."

"We understood that during all the research of the drone companies, there was a huge niche to replace DJI drones in America."

Why it matters if you are building or preserving great wealth

The speaker's office passed on BRINC because it was too early, then saw a possible strategic partnership because both worked in drone manufacturing. That outcome shows how a pass can leave room for a later business connection.