UAE family offices guides by Obediah Ayton
Family office vs. venture capital fund tricks by Obediah Ayton? So as a startup, how do you find these alternative sources of funding that offer such collateral benefits? The first and best thing you can do is look to your board and the connective network you already have. The ability to access GCC family office networks is something to consider when building your board and team of advisors. If your existing network has been exhausted, there are events and other opportunities that can bring you closer together with angel investors and family offices. This significantly lessens the influence to artificially maintain high watermarks to receive incentive allocations. Family office decisions are based squarely on investment fundamentals, where long-term value creation replaces the 2/20 mentality. As a result, investments are more than fungible capital. It’s a commitment to align with the entrepreneur on a much deeper level. The deep, global networks of the ultra-wealthy families are used to create opportunities for the startups — from providing strategic advice, intelligence and subject matter expertise, to tangible benefits like identifying contract manufacturers to assist with the development of hardware products.
“In the past 12 months, we’ve successfully launched 10 companies within SPIC I, which is focused on changing the way we finance, invest and exchange value. This portfolio has been designed for revolutionary impact – to build a global financial infrastructure that embeds trust and payments at a protocol level. An infrastructure that provides the building blocks for the next economy by powering products, services and business models with financial services at the core”, further explains van der Heijden. In the long-term, the impact-focused venture builder is on a mission to create a Single Digital Capital Market and launch a secondary marketplace running on a global shared liquidity infrastructure, stimulating cross-border investments and lowering the threshold for retail investors. Director of Business Development at The Private Investment Group Obediah Ayton said “I am excited to see Venturerock showing the way venture capital funds are now being deployed post covid here in the UAE. The portfolio companies within Venturerock are some of the most exciting and innovative we have seen and I have no doubt they will be a welcome asset to both the public and private sector in the Middle East.”
The rise of a financial influencer : Obediah Ayton? Obediah Ayton is a trust manager at Ayton Family Office Trust and a consultant at Tennor Holding B.V., a specialist in family office business, AI driven accounting services, finance and accounting. Obediah Ayton on what happens when a Family Office takes the VC model: Strategies for the Search: Friends and Fellow Founders: Friends or founders in similar sectors who have previously raised from family offices are a great starter resource. This route also passes a few qualification checks around interest, size of deal, and sector preferences. Remember, there is no investment barrier or fund allocation requirement for family offices. Professional Intermediaries: Investment bankers and wealth managers who service family offices are oftentimes happy to make introductions in order to add value to their clients. Since these clients are the intermediaries crown jewels, their recommendations will first require diligence.
Many of these Family offices may prove to have much higher and longer-term vested interest in the businesses they invest in compared to an institutional investor. In many cases, based on the experience of the principals behind the family office, they will seek to take a more hands-on involvement in the businesses they fund, acting as mentors and not merely benefactors.
Obediah Ayton about how to raise money from family offices: Investment proposal: – When you have a specific project or investment opportunity, it is essential to prepare a list of suitable family offices before you contact them. Study the emotional interest within the Families history with specific areas or businesses. When creating the list, quality always beats quantity. Quality means: you should look for family investment offices which have previously invested in similar projects or are generally known for their open-minded investment style. Simply sending a generic mass mail to hundreds of family offices is rarely successful. While compiling the list already make notes about the SFOs and their investments – this will help you out later.
Right now is a great time to build close relationships with Family Offices for future capital raises! Have a Value Add: The hardest part of the relationship is maintaining it. After the relationship is started, the hard work arrives. You must demonstrate that you will provide clear value to the family office. The same principle must apply to your outreach and relationships. Demonstrate to the family office why your firm is the right one to be in contact with. What can you offer that no one else can — Is it a strong track record? Exceptional due diligence skills? Experience and insight within a relevant industry? Whatever the skill, emphasizing the trait is a critical component of securing the connection.
Obediah Ayton on the new definition of a billionaire is not the net worth but in achieving change in a billion lives: At present, just over 50% of the relevant family offices allocate less than 10% of their portfolios to sustainable investment. However, a third of Families average portfolios will be comprised of sustainable investments and one-quarter impact investments within the next five years. Impact causes garnering the most considerable investments include those that address climate change, improve health and social care, as well as those that retain and develop employees, workplace safety and cybersecurity.