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The Top Ten Family Offices With The Most Direct Startup Investments

Illustration of piles of gold coins to represent money

A couple of weeks ago, Crunchbase News analyzed direct startup investments made by family investment offices. We found that the growth rate of deal-making by these private groups that invest on behalf of one ultra-high net worth family (or sometimes a few) vastly outpaced that of traditional venture capital firms.

There is some anecdotal evidence that more family offices are making their first investments directly into startups (as opposed to investing in a VC fund as a limited partner). But we wanted to know which investment groups have the most skin in the startup investing game, so to speak.

What follows are brief highlights of some of the most active family investment offices, according to Crunchbase data. The chart below displays the names and associated deal counts from the top ten investors, as ranked by total venture deal volume.

Omidyar Network

The is the most active in our ranking of family investment offices making direct investments into startups. Investing on behalf of founder and his spouse , a philanthropist, the network makes startup investments across all stages of the funding cycle. Many of its portfolio companies are headquartered in emerging economies. According to Crunchbase data, its portfolio is heavily weighted in education, information technology, and financial technology (FinTech).

Kapor Capital

is led by Lotus 1-2-3 founder and , an investor and founding team member of . The firm also makes investments across multiple stages of funding. And although the fund is mostly sector-agnostic, many of its portfolio companies are focused on mobile devices and services, education, and healthcare. Kapor Capital has a number of successful exits, including , , and . Kapor Capital also participated in , which raised $1.3 million for the transportation company at a pre-money valuation of $4 million.

Webb Investment Network

—formerly the COO of , CEO of , and co-founder of —co-founded the in 2010 with a LiveOps colleague named , who now manages his own fund called . serves as the firm’s CFO. Webb Investment Network has made seed and early-stage venture investments in companies like , , , and . Although the firm now makes fewer publicly-disclosed investments (as compared to a couple of years ago), the fund is still active and growing its affiliate network.

J. Hunt Holdings

Headquartered in Vienna, Virginia, is a holding company for select investments by . Hunt is also a managing partner at . According to the firm’s , J. Hunt Holdings invests between $100,000 and $1.1 million in early-stage ventures working in five main categories: video and sensing, data center management, social media, data security, and “other” sectors. The firm made three publicly disclosed investments in 2017. Its one public investment in 2018 (so far) was raised by a health monitoring firm called .

Hedgewood

is a Toronto-based firm investing on behalf of Jesse Rasch, previously the co-founder and CEO at and WebHosting.com. The fund invests across different stages across a diverse group of companies, primarily in healthcare, SaaS, and financial services. According to Crunchbase data, the firm has made one investment so far in 2018 by participating in , a Toronto-based marketplace for home service providers.

Winklevoss Capital

Co-founded by and , this is one of the only firms in this list that have made investments in the bitcoin and blockchain space. In 2017, the firm participated in initial coin offerings for and . Tyler and Cameron are also co-founders of , an exchange platform for bitcoin and other blockchain assets. The twin brothers were best known for Olympic-caliber performance on Harvard’s varsity men’s crew team and settling a lawsuit with for allegedly stealing intellectual property that would become .

Bezos Expeditions

is the family office of Amazon’s founder . The firm makes venture capital investments in seed, early, and late-stage startups from a wide range of sectors. Previous portfolio companies include , , , and the media company . The firm is currently invested in companies including , , , , and , among others. So far in 2018, the fund has made investments in UX testing platform and , which develops software that allows police departments to collect, analyze, and share crime data.

Iconiq Capital

is a multi-family office managed by which invests capital from a number of high-powered Silicon Valley executives. According to coverage in and , Makan’s clients include Mark Zuckerberg, , , and , among others.

The R-Group, LLC

The R-Group is a family office based in Portland, Oregon, founded by and . The firm’s portfolio is also rather sector-agnostic, but it tends to invest in SaaS or e-commerce businesses, many of which are headquartered in the Pacific Northwest. Prior portfolio companies include , , , and . Current portfolio companies include over-the-air charging technology developer , men’s fashion-inspired womenswear e-commerce shop , and internet redundancy and optimization service , among others.

Smedvig Capital

has offices in the UK and Norway and invests on behalf of the Smedvig family, which in the oceanic transport and offshore oil drilling industries. The firm makes investments at the Series A and Series B stage, and it tends to follow on for several subsequent rounds. Its portfolio companies are almost exclusively based in the UK and Scandinavia. According to the firm’s Crunchbase profile, Smedvig “has invested over £800 [million] of internal capital.”

The Leading Edge

What do all of these firms have in common? They sit on the leading edge of a number of curves.

First and foremost, the families these investors serve are definitely far out on the wealth distribution curve. After all, they can afford to employ an entire office full of folks whose sole focus is to manage and preserve their wealth. But, perhaps less obviously, these firms are among those on the leading edge of a trend we documented earlier: of more family offices making investments directly into startups.

It should go without saying that investing in startups is not for every high net worth individual or family (or even most of them). But as tech startups continue to attract younger generations, who will eventually take up the task of deploying a fortune, don’t be surprised if many of them look to the investment groups highlighted here for some inspiration.

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