Family Offices Help Entrepreneurs Drive Great Ideas to Reality

Charles Stucke

01-09-2025

For centuries, venture capital -- the private sponsorship of technological and commercial innovation -- has been a driving force for social progress, prosperity, productive disruption, capitalism, freedom, and by extension, liberal democracy (and more). While venture capital hasn’t always been known by this name, it has and continues to help support the society we love. 

When we think about venture capital, we often think of the famous firms on Sand Hill Road. Yet, family offices play a critical and often under-appreciated role in the venture ecosystem. Their role serves an important enabling and enfranchising function within our nation’s capitalist economic model -- family offices across the U.S. quietly back the ideas of tomorrow. In doing so, they exercise core free-market muscles and deliver the commercial rewards of our freedom. 

Historically, some of venture capital’s most impactful successes took root when wealthy families helped scientists and engineers drive great ideas from prospect to reality. These families funded research. They funded start-ups. In addition to money, they brought accountability, know-how and networks to the table, and they still do. 

For example, Apple Inc. needed Mike Markkula’s angel investment. Independently wealthy, Markkula provided capital, bank relationships, mentoring and more to the young Steve Jobs and Steve Wozniak after Apple Inc. had been rejected by a leading venture capital firm and Hewlett Packard (five times). As a wealthy individual investor, Markkula’s personal expertise in computing and his decision-making independence allowed him to go where traditional institutions were unwilling. The rest is, as they say, history. 

While Apple Inc.’s success is extraordinary, its need of a wealthy partner to create a great business is not. Capitalism works best when diverse sources of capital compete to sponsor talented entrepreneurs. With more than 6,000 single family offices, the U.S. has a deep pool of potential capital sources for the idea-rich, as long as those family offices value their role in the broadly defined venture community. Quite a few of them do, and explicitly so. 

Many ultra-high-net-worth individuals and family offices earmark portions of their portfolios for angel investing in locally managed start-ups. They also reserve targeted funding for entrepreneurial activity in areas of special value to them. Without independent family office investors willing to form differentiated views and invest accordingly, myriad companies large and small would never get off the ground. 

To best access family office capital to bring their ideas to life, emerging entrepreneurs should:

Recognize family offices as vital players in the venture ecosystem

• Family offices play a crucial role in enabling innovation by funding research, start-ups and early-stage ideas. Businesses should explore partnerships with family offices alongside traditional venture capital firms, particularly if family-owned businesses can become seed-stage clients.

Capitalize on specialized knowledge and networks

• Beyond funding, family offices offer expertise, accountability and networks. Entrepreneurs should seek family offices with industry-specific knowledge or interests aligned with their ventures for tailored guidance and support.

Highlight and encourage family office independent decision-making

• Family offices, like with Mike Markkula's support of Apple Inc., can make independent investment decisions unconstrained by institutional biases. Entrepreneurs with unconventional ideas should seek like-minded family groups to attract early-stage capital.

Leverage the growing number of family offices

• With more than 6,000 single family offices in the U.S. and counting, entrepreneurs should actively research and approach family offices that match their geographic and industry foci.

Foster localized and values-driven investments

• Many family offices prioritize local start-ups or projects tied to their values. Entrepreneurs should emphasize how their ventures align with these preferences, such as community impact, industry relevance or other ambitions.

Family-sponsored venture funding makes our nation creatively productive, yet this funding avenue is under-appreciated. I encourage enterprising entrepreneurs to seek out opportunities to partner with family-office investors as they bring their ideas to life.

Next week I’ll share some actionable insights for family offices, insights that aim to increase the impact family offices can have on our venture ecosystem.