Raising capital is hard. And in 2023 its never been harder or more necessary. Investors are backing off equity investments at a time when growth is slowing and interest rates make other forms of financing seem too hard to swallow.
Attracting investment from a Family Office can feel daunting, but there’s no need to strive for perfection. Instead, focus on making steady progress and fostering a natural interaction, ensuring the Family Office remains in control throughout the process. In this article, we explore the crucial steps to secure investment from a Family Office, with a style that’s 80% professional and 20% fun and engaging.
- Build genuine connections and conduct thorough research on the Family Office’s interests and values.
- Stand out with a unique value proposition and establish trust through transparency.
- Maintain confidence, stay cool, and be persistent in your approach to secure the investment.
Step 1: Connect thoughtfully
Cold emails may work, but introductions through mutual colleagues are more effective. Adopt a personal touch in your initial communication, mentioning your mutual connection and suggesting a time for a call or meeting. Remember, this isn’t the time for a hard sell – you’re aiming to secure a meeting to present your offering.
2: Research, research, research
Before reaching out, gather information about the Family Office. However, once you have a meeting scheduled, dig deeper into their background, business principles, and core values. Familiarize yourself with your competition and understand what sets your opportunity apart. Align your pitch with their personal and professional beliefs and pain points.
Step 3: Be unforgettable
Family Offices receive countless pitches, so stand out by connecting with your target investor. Stay ahead of trends and showcase opportunities in a fresh light. Summarize your market position, unique value, and benefits into a single sentence to demonstrate your clear intent and worth.
Step 4: Cultivate trust
Throughout the interaction, build trust by being transparent and thorough. Walk them through different involvement options, providing examples and data. Reinforce trust with a comprehensive pitch that outlines legal liabilities, potential losses, and investment details.
Family offices are high in demand as investors go. They’re perceived as being faster to act, less bureaucratic, and lighter on due diligence. As a result they are approached constantly with offers. So family offices often favour people that they have already done business with or are in their network. Often this can provide much needed reassurance in place of the extensive due diligence more institutional investors are resourced to do. Find the right social connections and references that can help connect you to the key decision makers.
Step 5: Confidence is key
Avoid appearing desperate by maintaining a cool and confident demeanour. A clear pitch deck with visuals, financial forecasts, and team information will keep you focused and organized. Rely on visual cues to guide your presentation. Keep it simple and don’t overwhelm your audience. The key is convincing them that you have experience to execute, the infrastructure to support you or your team and the integrity to do what’s best for your investors in the inevitable tough times. Don’t get them weighed down with the minutiae of the business strategy or deal, but rather convey confidence that you’re as close to a sure thing as possible (but never B.S).
Step 6: Proactive follow-ups
Take the initiative with follow-ups, addressing any objections and providing additional information. Be accessible and open to face-to-face meetings. High-level transactions may require a slower, more persistent approach, so be patient. Given family offices received so many deals and are often staffed with generalists with a ton of work on their plates, don’t be offended if they aren’t the most responsive. In short, chase, chase, chase!
Building successful relationships with Family Offices takes time and persistence. Stay open to different approaches and don’t be disheartened by slow responses. By following these guidelines, the right partnership will materialize.