French Family Offices: pioneering investment in early stage startups

In the dynamic French entrepreneurial landscape, the proactive involvement of Family Offices in funding early stage startups has become a notable trend. These Family Offices, akin to venture capital firms, are increasingly investing in nascent enterprises, nurturing innovation, and driving the success of tomorrow's leaders. This article delves into the pivotal role of Family Offices in the startup ecosystem, highlighting their contributions through specific examples and analyzing recent trends.

The rise of Family Offices in the startup ecosystem

Over the past few years, there has been a marked increase in investments by French Family Offices in early stage startups. This shift represents a significant transformation in the investment landscape, with these private entities now playing a critical role in nurturing young companies. Family Offices offer more than just financial backing; they provide strategic guidance, industry expertise, and invaluable networking opportunities. As a consequence and according to a recent report by Les Echos[1], Family Offices now account for a considerable portion of venture investments in France (26% in 2023), underscoring their growing influence.

Strategic and financial advantages of Family Offices

Family Offices bring a unique combination of substantial financial resources and a commitment to fostering innovation. Their investments are not just about capital infusion; they also encompass strategic partnerships that help startups navigate early challenges and scale efficiently. By becoming stakeholders, Family Offices enhance their own innovation capabilities while identifying potential future growth sectors. They, of course, have return expectations, but these are over a longer term compared to VCs or PEs, who are accountable to their LPs within a limited period of time (5 to 7 years on average).

Impact on startups

The involvement of Family Offices extends beyond mere investment. They offer strategic support, open doors to new markets, and provide access to robust networks. This synergy creates significant advantages for startups, facilitating their journey from early stage ventures to market leaders. The deep sector knowledge and specific market access provided by Family Offices enable startups to achieve critical development milestones more effectively.

Success stories of Family Offices and startups

To illustrate the profound impact of Family Offices on French startups, let’s explore ten success stories that highlight these dynamic partnerships:

1. Kima Ventures (Xavier Niel)

One of France’s most active Family Offices, Kima Ventures, has invested in a wide array of startups including BlaBlaCar, Sorare, Payfit, Alan, Spendesk, Swile and TransferWise, fostering a global entrepreneurial spirit.

2. Aglaé Ventures (Arnault Family)

It has around 50 companies in its portfolio, and has the particularity of investing from seed to growth, with tickets ranging from €100,000 to €100 million; among them Ankorstore, Back Market and ManoMano.

3. Holnest (Aulas Family)

Holnest has invested in Abelio (agritech), Faume (greentech), Fulllife (video games) and Obat (construction software).

4. Famille C Participations (Courtin Family)

They invest in the beauty and well-being experience sectors, with stakes in Joone, Ecovadis or Le collectionist.

5. Motier Ventures (Houzé Family)

They invest up to €300k as Business Angel in early days and follow up to €3m on next rounds. They focus on Future of Commerce, FinTech, CreativeTech, Consumer & Gaming, Infra & Tooling and Future of Work, with Blockchains and AI as transversal expertises (Mistral AI, Coinhouse, Helios, etc.)

6. Creadev (Mulliez Family)

Creadev has a simple and unique project: to help entrepreneurs in their field to progressively build the best in the world for the benefit of the greatest number. 200 companies in 32 countries, among which Selency, Innovafeed, M2i Life Sciences.

7. Purple (Laurent Ritter)

Purple is the angel fund of Laurent Ritter (co-founder of Voodoo). They invest in early stage companies like beavr, flitter,omi, Shareline, etc.

8. La Financière Saint James (Micha?l Benabou)

Financière Saint James is the family office of Micha?l Benabou, co-founder of vente-privée.com. The family office invests primarily in digital startups offering disruptive services, like Seyna, Bellman and Spiko.

9. JCDecaux Holding (Decaux Family)

Known for its diversified portfolio, JCDecaux Holding has invested in tech startups such as Navya and Instabridge, driving innovation in the transportation and communication sectors.

10. Evolem (Bruno Rousset)

Created more than 30 years ago, it has invested in real estate and startups such as Virgil, Blink, Plume, Legal Place and Vendredi.

Conclusion

The proactive involvement of Family Offices in early stage startups is reshaping the French entrepreneurial ecosystem. By providing not only financial support but also strategic guidance and networking opportunities, these Family Offices are pivotal in driving innovation and helping startups achieve success. This trend reflects a broader shift towards a more integrated and supportive investment landscape, where the synergy between Family Offices and startups fosters a mutually beneficial path to growth and innovation.

Investing in early stage startups is a bold move, but for these Family Offices, it represents an opportunity to shape the future. As they continue to back new ideas and technologies, they play a crucial role in the evolution of the entrepreneurial landscape in France and beyond.

If you are a VC or even a startup?looking for bold Family Offices as investors, or a bold Family Office looking for promising investments in innovative startups, Invyo’s solution can help you. Find out how on Invyo.io.

[1] https://www.lesechos.fr/start-up/ecosysteme/les-family-offices-et-les-entrepreneurs-principaux-souscripteurs-des-fonds-de-capital-risque-en-2023-2091907