With traditional venture capital, angel investors, private equity and newer models like equity crowdfunding, entrepreneurs today have more access to capital than ever before. Now, add to this list: the growing prominence of family investment offices.
“One thing for a startup to keep in mind is that family offices might not have the bandwidth to accommodate assistance with strategy and recruiting, which VC firms are traditionally better equipped to provide. Separately, most traditional VCs reserve capital for multiple rounds whereas newer family offices aren’t prepared for multiple rounds of investments. This is not a knock on family offices; just be knowledgeable of the past investment patterns of that investor,” said Eddie Lou, CEO of Shiftgig, reflecting on receiving funding twice from DRW Venture Capital, the venture investment arm of the Chicago-based trading firm.
DRW — which has been “fantastic to work with,” according to Lou — has a streamlined due diligence process and is getting ready to make larger investments. DRW has supported Shiftgig by making introductions to prospective clients and investing their pro-rata in future rounds of financing. “DRW acts like a partner rather than a parent,” says Lou.
Read more at Chicago Inno