Family Offices and Fund of Funds: Vital Players in Europe’s Startup Growth

• Europe’s startup ecosystem is evolving with deeper funding transformations.
• Family Offices are stepping into active roles in European innovation.
• Investments by family offices in European startups surged by nearly 49%.
• Central and Eastern European family offices are reshaping local investment landscapes.
• Fund of Funds play a crucial role in sustaining Europe’s VC growth.
• Impact investing is at the forefront for many family offices and FoFs.

Investment Strategies Shifting in Europe’s Startup Ecosystem

Europe’s startup ecosystem is clearly shifting gears as it enters a new phase of growth. It’s easy to get distracted by the flashy headlines proclaiming unicorns and mega funding rounds, but there’s much more happening below the surface. This transformation is pushing funding strategies to a place where alignment, smart strategy, and sustainable value reign supreme. Major players in this new landscape? Family Offices and Fund of Funds (FoFs). These investor groups, once more comfortable in the shadows, are stepping into the limelight and starting to play key roles in driving innovation across Europe, making their money work harder and more effectively than ever.

Family Offices: Evolving from Quiet Capital to Strategic Players

Family Offices have an interesting backstory. Traditionally, they’ve been seen as quiet players—those discreet investors who prefer to stay out of the spotlight. However, this old narrative is quickly changing. According to a study from PwC, family office investments in European startups skyrocketed by nearly 49% in terms of deal count, and even saw their investment value nearly tripling to an impressive $158.8 billion in 2021. This isn’t just a fluke; it’s a clear reflection of a growing trend where these once low-profile investors are looking toward bigger, more impactful deals. What’s driving this new direction? Well, there’s a generational shift underway, as younger family members, with their fresh perspectives and innovative approaches, are taking charge and reshaping investment philosophies.

Family Offices in Central and Eastern Europe are Making Waves

This evolution doesn’t stop there; look towards Central and Eastern Europe (CEE) where family offices are dramatically reshaping the local landscape. After the seismic shifts of 1989, wealth in CEE is still relatively new, but it’s maturing—and so are the ways to manage it. Single Family Offices (SFOs) and Multi-Family Offices (MFOs) are popping up all over, specializing in customized investment strategies and charitable initiatives. Many of these family offices are surprisingly nimble, often managing portfolios running between €5 million and €20 million. The strategic investments they’re making are creating what could be called ‘Central European champions’ as they link with private equity firms and broaden their geographical reach. For instance, the family office of Czech magnate Daniel Křetínský has taken stakes in major companies spread across several countries in Western Europe, including UK, France, and Germany. All of this showcases how family offices in regions like CEE are evolving into powerful investment hubs by injecting much-needed capital into high-growth potential assets.

Fund of Funds: The Unsung Heroes of Venture Capital

On the flip side, we’ve got Fund of Funds (FoFs), who have a more subtle yet equally crucial role. They invest in various venture capital funds, amplifying their influence and backing new fund managers while diversifying risks. In Europe, where the venture capital scene is still finding its bearings compared to its US counterpart, FoFs are key. They offer a lifeline to newer or specialized funds that help inject professionalism and fresh expertise into the market. In challenging economic conditions, these institutional frameworks become vital to sustaining the startup funding flow. And here’s where it gets interesting; there’s also a rising trend of impact investing, which both family offices and FoFs are starting to champion more aggressively.

Connecting Innovators to Investors for Lasting Impact

BlackRock’s recent survey indicates nearly one-third of family offices are planning to boost their investments in private credit and infrastructure, all while keeping sustainability in focus. Platforms that connect capital with innovative ideas, like Dealflow.eu, are bridging gaps and nurturing relationships between family offices and startups. Edouard Thijssen, the founder of Trusted Family, points out that as the private markets continue to grow in importance—87% of U.S. companies with more than $100 million in revenue are private and fewer go public—family offices globally are crafting more sophisticated investing strategies. As Europe continues to advance its own trajectory, the need for deep-rooted partnerships becomes even clearer. The forthcoming Ventures.eu Forum aims to consolidate this energy, uniting progressive family offices, FoFs, and venture capitalists at an event set for 23 September at the historic Château de Beloeil in Belgium.

Europe’s Startup Landscape is Evolving Rapidly

The European startup scene is undoubtedly shifting. Family Offices and Fund of Funds—once comforted by their quiet roles—are stepping up, embracing new partnerships and strategies. They’re not simply passive capital providers anymore; they have a vision and an eagerness to contribute long-term value. The path ahead is bright, filled with potential for both startups and investors to collaborate meaningfully, and the Ventures.eu Forum is just one way they’re making connections. For anyone who’s looking to tap into this dynamic landscape, this will be a must-attend event. The confluence of legacy wealth and new ideas may just spark the next big wave in European tech and beyond.

In summary, Europe’s innovation ecosystem is experiencing a significant transformation. Family Offices and Fund of Funds are emerging as influential players not just in providing capital but in driving strategic partnerships that support sustainable growth. As the startup environment continues to evolve, connecting these capital sources with promising founders is more critical than ever, and upcoming events like the Ventures.eu Forum are pivotal in shaping these industry dynamics. Their active participation signals a bright future for European startups.